The Effect of IAS/IFRS Adoption on Earnings Management (Smoothing): A Closer Look at Competing Explanations


Journal of Accounting and Public Policy

juillet-août 2016, vol. 35, n°4, pp.352–394

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : IFRS, Earnings management, Smoothing

Prior research provides mixed evidence on whether the transition to IAS/IFRS deters or contributes to greater earnings management (smoothing). The dominant explanation for the conflicting results is self-selection. Early voluntary adopters had incentives to increase the transparency of their reporting in order to attract outside capital, while those firms that waited until IFRS adoption became mandatory in EU countries lacked incentives for transparent reporting leading to increases in earnings management (smoothing) after IFRS adoption. We maintain that the IFRS standards that went into effect in 2005 provide greater flexibility of accounting choices because of vague criteria, overt and covert options, and subjective estimates. This greater flexibility coupled with the lack of clear guidance on how to implement these new standards has led to greater earnings management (smoothing). Consistent with this view, we find an increase in earnings management (smoothing) from pre-2005 to post-2005 for firms in countries that allowed early IAS/IFRS adoption, as well as for firms in countries that did not allow early IFRS adoption. We find no evidence of changes in incentives that can explain these results.

The European Audiovisual Industry and the Digital Single Market: Trends, Issues and Policies


DigiWorld Economic Journal (formerly Communications et Strategies), IDATE

mars 2016, n°101, pp.17-40

Départements : GREGHEC (CNRS)

Mots clés : audiovisual regulatory framework, Digital Single Market, audiovisual industry, Europe, convergence, OTT

New players emerge in the audiovisual industry and offer unprecedented solutions for aggregating and distributing content. New entrants, especially social networks, have been the engines of these changes toward multitasking, multi-screening behaviours. The way of accessing and interacting with content has changed. Over the last three decades, the European Commission has been watching carefully the evolution of the media and content industries with the goal to foster growth and innovation of digital content services in the European Union, while at the same time protecting consumers in a harmonised fashion.The paper contrasts the global trends of the market, the features of the dual EU audiovisual markets with some of the recent proposals of the European Commission in the backdrop of its numerous initiatives of the last decades

The Pipeline Project: Pre-Publication Independent Replications of a Single Laboratory’s Research Pipeline


Journal of Experimental Social Psychology

septembre 2016, vol. 66, pp.55-67

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Crowdsourcing science, Replication, Reproducibility, Research transparency, Methodology, Meta-science

This crowdsourced project introduces a collaborative approach to improving the reproducibility of scientific research, in which findings are replicated in qualified independent laboratories before (rather than after) they are published. Our goal is to establish a non-adversarial replication process with highly informative final results. To illustrate the Pre-Publication Independent Replication (PPIR) approach, 25 research groups conducted replications of all ten moral judgment effects which the last author and his collaborators had “in the pipeline” as of August 2014. Six findings replicated according to all replication criteria, one finding replicated but with a significantly smaller effect size than the original, one finding replicated consistently in the original culture but not outside of it, and two findings failed to find support. In total, 40% of the original findings failed at least one major replication criterion. Potential ways to implement and incentivize pre-publication independent replication on a large scale are discussed

The Politics of Achievement Gaps: U.S. Public Opinion on Race-Based and Wealth-Based Differences in Test Scores


Educational Researcher

2016, vol. 45, n°6, pp.331-346

Départements : Management et Ressources Humaines

Mots clés : achievement gap; educational policy; equity; experimental research; politics; poverty; race; survey research

For decades, researchers have documented large differences in average test scores between minority and White students and between poor and wealthy students. These gaps are a focal point of reformers’ and policymakers’ efforts to address educational inequities. However, the U.S. public’s views on achievement gaps have received little attention from researchers, despite playing an important role in shaping policymakers’ behaviors. Drawing on randomized experiments with a nationally representative sample of adults, we explore the public’s beliefs about test score gaps and its support for gap-closing initiatives. We find that Americans are more concerned about—and more supportive of proposals to close—wealth-based achievement gaps than Black-White or Hispanic-White gaps. Americans also explain the causes of wealthbased gaps more readily

The role of codes of conduct in the assessment of unfair commercial practices


Journal of Business Law

2016, vol. 6, pp.451-464

Départements : Droit et fiscalité, GREGHEC (CNRS)

Mots clés : Codes of conduct; EU law; Unfair commercial practices

This article provides an in-depth analysis of the role of codes of conduct in the assessment of unfair commercial practices established by Directive 2005/29 of 11 May 2005 concerning unfair business-to-consumer practices in the internal market and its current reception in Member States case law

The Sovereign-Bank Diabolic Loop and ESBies


American Economic Review

mai 2016, vol. 106, n°5, pp.508-512

Départements : Finance

We propose a simple model of the sovereign-bank diabolic loop, and establish four results. First, the diabolic loop can be avoided by restricting banks domestic sovereign exposures relative to their equity. Second, equity requirements can be lowered if banks only hold senior domestic sovereign debt. Third, such requirements shrink even further if banks only hold the senior tranche of an internationally diversified sovereign portfolio known as ESBies in the euro-area context. Finally, ESBies generate more safe assets than domestic debt tranching alone; and, insofar as the diabolic loop is defused, the junior tranche generated by the securitization is itself risk-free

The Utilitarian Relevance of the Aggregation Theorem


American Economic Journal: Microeconomics

août 2016, vol. 8, n°3, pp.289-306

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

Mots clés : Utilitarianism, Aggregation Theorem, Impartial Observer Theorem, Cardinal utility, VNM utility, Harsanyi, Sen

Harsanyi (1955) invested his Aggregation Theorem and Impartial Observer Theorem with utilitarian sense, but Sen (1986) described them as "representation theorems" with little ethical import. This critical view has never been subjected to full analytical scrutiny. The formal argument we provide here supports the utilitarian relevance of the Aggregation Theorem. Following a hint made by Sen himself, we posit an exogeneous utilitarian ordering that evaluates riskless options by the sum of individual utilities, and we show that any social observer who obeys the conditions of the Aggregation Theorem evaluates social states in terms of a weighted variant of this utilitarian sum.

Trade Credit and Industry Dynamics: Evidence from Trucking Firms


The Journal of Finance

octobre 2016, vol. 71, n°5, pp.1975-2016

Départements : Finance

Long payment terms are a strong impediment to the entry and survival of liquidity-constrained firms. To test this idea and its implications, I consider the effect of a reform restricting the trade credit supply of French trucking firms. In a difference-in-differences setting, I find that trucking firms' corporate default probability decreases by 25% following the restriction. The effect is persistent, concentrated among liquidity-constrained firms, and not offset by a decrease in profits. The restriction also triggers an increase in the entry of small trucking firms

Unraveling Belgian fashion designers' high perceived success: A set-theoretic approach


Journal of Business Research

avril 2016, vol. 69, n°4, pp.1407-1411

Départements : Stratégie et Politique d’Entreprise

Mots clés : Fashion design industryAmbidexterityDominant logiccsQCA

This article presents an explorative comparative case study of 19 cases in the fashion design industry regarding the achievement of high perceived organizational success. The set-theoretic analysis of these data yields two configurational pathways to high perceived success. Firstly, a balance between exploitation and exploration is necessary, especially when the fashion design firm is at an early stage in the life cycle or following dominant industry logic. Secondly, no balance is sufficient for low perceived organizational success. These findings enhance configurational understanding of the fashion industry and show that the business side of that industry needs more support

Voluntary disclosure of greenhouse gas emissions: Contrasting the carbon disclosure project and corporate reports


Journal of Business Ethics

mars 2016, vol. 134, n°3, pp.445-461

Mots clés : Communication channels, GHG emissions, Stakeholder theory, Traceability, Voluntary disclosure

As global warming continues to attract growing levels of attention, various stakeholders (states, general public, investors, and lobbyists) have put climate change on corporate agendas and expect firms to disclose relevant greenhouse gas (GHG) information. In this paper, we investigate the consistency of the GHG information voluntarily disclosed by French listed firms through two different communication channels: corporate reports (CR) and the Carbon Disclosure Project (CDP). More precisely, we contrast the amounts of GHG emissions reported and the methodological explanations provided (named ‘traceability’) in each channel. Consistent with a stakeholder theory perspective, we find that GHG amounts are significantly lower in the CR than in the CDP. We also find that firms increase the CR figures’ traceability when there is a discrepancy between disclosures in the two channels. We suggest that the aim of this greater traceability is to enhance information credibility across the different channels used