SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5161 / INIST-CNR... more SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5161 / INIST-CNRS - Institut de l'Information Scientifique et TechniqueFRFranc
Economic theory and recent empirical evidence show that nonlinear progressive water pricing polic... more Economic theory and recent empirical evidence show that nonlinear progressive water pricing policies are the most useful tool to reduce water demand in water stressed countries. The originality of our paper is to implement Pedroni (1999) panel cointegration tests, using databases on a breakdown of two consumption blocks (a lower and an upper block) from the Tunisian water regulator over 27 years. The results reveal that increasing block tariffs have been successful in managing scarce water in Tunisia. The authors observe that, in the long-run, proportion of subscribers in the upper water consumption block decreases when price increases, while in the lower block, which is composed essentially of low-income households characterized by inelastic water demand, proportion of subscribers is less elastic to price changes and still unchanged. This paper calls for the implementation of nonlinear progressive pricing to reduce demand by large consumers in order to promote efficiency in use and...
Purpose This paper aims to investigate whether idiosyncratic volatility is a priced risk factor i... more Purpose This paper aims to investigate whether idiosyncratic volatility is a priced risk factor in the Australian stock market. Design/methodology/approach The authors use the change in idiosyncratic volatility around acquisition announcements and the related stock price revaluation to test whether the idiosyncratic risk is priced. If the idiosyncratic risk is priced, increases (decreases) in idiosyncratic volatility should be associated with decreases (increases) in the acquirer’s stock price, as the latter’s future cash flows are discounted at a higher (lower) rate. The sample consists of 2,656 completed acquisitions by Australian listed firms over the period January 1990 to October 2014 for which deal value represents more than 5 per cent of the acquirer’s market value. Findings Increases (decreases) in idiosyncratic risk are associated with significant decreases (increases) in firm value. This negative relationship is robust to the presence of outliers; is unaffected by the inci...
SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5196 / INIST-CNR... more SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5196 / INIST-CNRS - Institut de l'Information Scientifique et TechniqueFRFranc
This paper examines the presence of nonlinear behavior in the exchange rate pass-through (ERPT) f... more This paper examines the presence of nonlinear behavior in the exchange rate pass-through (ERPT) for a set of euro area countries. We propose to solve the endogeneity problem inherent in single-equation-based methods by implementing the family of nonlinear vector smooth transition regression (VSTR) models. Using quarterly data that span from 1980:1 to 2015:4, linearity tests reveal that the ERPT responds nonlinearly to economic growth. According to the pass-through elasticities, exchange rate transmission differs significantly between the identified economic activity regimes. However, our results underscore the presence of heterogeneous profiles across the euro area economies. For some countries, the ERPT is higher during expansions than during recessions; however, the result is reversed for others. Our findings emphasize the role of a declining ERPT, as it may foster business cycle synchronization and inflation convergence within the monetary union.
La formation des elites francaises au sein d’un petit nombre de grandes ecoles entraine l’existen... more La formation des elites francaises au sein d’un petit nombre de grandes ecoles entraine l’existence d’une certaine proximite entre dirigeants et administrateurs fondee sur le partage d’un meme diplome. Dans cet article, nous analysons l’effet de cette proximite sur le cout des fonds propres de l’entreprise. Les resultats montrent que la proximite se traduit par un cout des fonds propres plus eleve en raison d’un risque de comportement opportuniste du dirigeant lie a l’affaiblissement du controle disciplinaire du conseil d’administration. Cet effet est amplifie lorsque le dirigeant est fortement enracine du fait d’une longue periode en poste ou d’un cumul de mandat avec la presidence du conseil d’administration. Il est en revanche attenue lorsqu’il existe des mecanismes pouvant compenser une defaillance du conseil d’administration, comme la presence d’un gros actionnaire dans le capital de la firme ou un suivi plus important par les analystes financiers. Dans l’ensemble, notre etude met en avant le cout resultant de l’existence de liens sociaux entre le dirigeant et les administrateurs.
L’importance du diplome dans l’acces aux plus hautes fonctions de l’entreprise se traduit en Fran... more L’importance du diplome dans l’acces aux plus hautes fonctions de l’entreprise se traduit en France par la presence frequente de liens sociaux entre le dirigeant et les administrateurs bases sur une formation commune. L’objectif de cet article est d’etudier les consequences de ces liens sur la prise de risque de la firme. Nos resultats montrent que ces liens entrainent une baisse du risque qui est d’autant plus significative que la duree en poste du dirigeant est longue. Ces resultats apparaissent robustes a l’utilisation de mesures de risque alternatives. Ils se refletent egalement dans un taux de croissance et une valorisation plus faibles de la firme. Notre etude met ainsi en evidence le conflit d’agence entre le dirigeant et les actionnaires concernant le niveau de risque de la firme, et l’influence des liens sociaux dans l’aggravation de ce conflit.
This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize tha... more This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize that the effect of CEO tenure is conditional on the firm's growth rate. The empirical analysis reveals that the effect on growth is negative in high-growth firms and positive in low-growth firms. These findings are consistent with the view that long CEO tenure is beneficial in a more stable environment, but detrimental under rapidly-changing circumstances.
Le but de cet article est de mettre en evidence ce qui amene les entreprises francaises a engager... more Le but de cet article est de mettre en evidence ce qui amene les entreprises francaises a engager des cessions d’actifs et d’en evaluer l’effet sur la richesse des actionnaires. Notre analyse indique qu’un faible niveau de rentabilite et de focalisation, et un endettement eleve constituent les facteurs determinants d’une cession. Dans l’ensemble, les entreprises francaises ont recours aux cessions pour soutenir leur performance. Toutefois, une analyse plus fine suggere qu’elles y recourent de facon insuffisante lorsqu’elles en ont le plus besoin. Les investisseurs semblent apprecier les operations de cession, comme le montre la revalorisation significative de l’entreprise au moment de leur annonce, surtout si la cession permet a l’entreprise d’accroitre sa rentabilite et de reduire son endettement.
The main originality of this paper is to empirically investigate the long-run relationship betwee... more The main originality of this paper is to empirically investigate the long-run relationship between carbone dioxide (CO2) emissions, energy use and real GDP per capita in the Middle East and North Africa (MENA) during the last three decades. Using panel cointegration tests (Westerlund, (2007) and DOLS estimation method, we validate the Environmental Kuznets Curve (EKC) hypothesis in the long run for the MENA region countries. Therefore, we conclude that oil producer countries have adopted several policy decisions in favor of CO2 emissions reduction. The estimated turning point of the EKC confirms our intuitions that only oil producer countries achieve CO2 emissions reduction goal.
HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific r... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et à la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Do CEO-Board ties affect the firm’s cost of equity? Cédric van Appelghem, Pascal Nguyen
SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5161 / INIST-CNR... more SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5161 / INIST-CNRS - Institut de l'Information Scientifique et TechniqueFRFranc
Economic theory and recent empirical evidence show that nonlinear progressive water pricing polic... more Economic theory and recent empirical evidence show that nonlinear progressive water pricing policies are the most useful tool to reduce water demand in water stressed countries. The originality of our paper is to implement Pedroni (1999) panel cointegration tests, using databases on a breakdown of two consumption blocks (a lower and an upper block) from the Tunisian water regulator over 27 years. The results reveal that increasing block tariffs have been successful in managing scarce water in Tunisia. The authors observe that, in the long-run, proportion of subscribers in the upper water consumption block decreases when price increases, while in the lower block, which is composed essentially of low-income households characterized by inelastic water demand, proportion of subscribers is less elastic to price changes and still unchanged. This paper calls for the implementation of nonlinear progressive pricing to reduce demand by large consumers in order to promote efficiency in use and...
Purpose This paper aims to investigate whether idiosyncratic volatility is a priced risk factor i... more Purpose This paper aims to investigate whether idiosyncratic volatility is a priced risk factor in the Australian stock market. Design/methodology/approach The authors use the change in idiosyncratic volatility around acquisition announcements and the related stock price revaluation to test whether the idiosyncratic risk is priced. If the idiosyncratic risk is priced, increases (decreases) in idiosyncratic volatility should be associated with decreases (increases) in the acquirer’s stock price, as the latter’s future cash flows are discounted at a higher (lower) rate. The sample consists of 2,656 completed acquisitions by Australian listed firms over the period January 1990 to October 2014 for which deal value represents more than 5 per cent of the acquirer’s market value. Findings Increases (decreases) in idiosyncratic risk are associated with significant decreases (increases) in firm value. This negative relationship is robust to the presence of outliers; is unaffected by the inci...
SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5196 / INIST-CNR... more SIGLEAvailable from INIST (FR), Document Supply Service, under shelf-number : DO 5196 / INIST-CNRS - Institut de l'Information Scientifique et TechniqueFRFranc
This paper examines the presence of nonlinear behavior in the exchange rate pass-through (ERPT) f... more This paper examines the presence of nonlinear behavior in the exchange rate pass-through (ERPT) for a set of euro area countries. We propose to solve the endogeneity problem inherent in single-equation-based methods by implementing the family of nonlinear vector smooth transition regression (VSTR) models. Using quarterly data that span from 1980:1 to 2015:4, linearity tests reveal that the ERPT responds nonlinearly to economic growth. According to the pass-through elasticities, exchange rate transmission differs significantly between the identified economic activity regimes. However, our results underscore the presence of heterogeneous profiles across the euro area economies. For some countries, the ERPT is higher during expansions than during recessions; however, the result is reversed for others. Our findings emphasize the role of a declining ERPT, as it may foster business cycle synchronization and inflation convergence within the monetary union.
La formation des elites francaises au sein d’un petit nombre de grandes ecoles entraine l’existen... more La formation des elites francaises au sein d’un petit nombre de grandes ecoles entraine l’existence d’une certaine proximite entre dirigeants et administrateurs fondee sur le partage d’un meme diplome. Dans cet article, nous analysons l’effet de cette proximite sur le cout des fonds propres de l’entreprise. Les resultats montrent que la proximite se traduit par un cout des fonds propres plus eleve en raison d’un risque de comportement opportuniste du dirigeant lie a l’affaiblissement du controle disciplinaire du conseil d’administration. Cet effet est amplifie lorsque le dirigeant est fortement enracine du fait d’une longue periode en poste ou d’un cumul de mandat avec la presidence du conseil d’administration. Il est en revanche attenue lorsqu’il existe des mecanismes pouvant compenser une defaillance du conseil d’administration, comme la presence d’un gros actionnaire dans le capital de la firme ou un suivi plus important par les analystes financiers. Dans l’ensemble, notre etude met en avant le cout resultant de l’existence de liens sociaux entre le dirigeant et les administrateurs.
L’importance du diplome dans l’acces aux plus hautes fonctions de l’entreprise se traduit en Fran... more L’importance du diplome dans l’acces aux plus hautes fonctions de l’entreprise se traduit en France par la presence frequente de liens sociaux entre le dirigeant et les administrateurs bases sur une formation commune. L’objectif de cet article est d’etudier les consequences de ces liens sur la prise de risque de la firme. Nos resultats montrent que ces liens entrainent une baisse du risque qui est d’autant plus significative que la duree en poste du dirigeant est longue. Ces resultats apparaissent robustes a l’utilisation de mesures de risque alternatives. Ils se refletent egalement dans un taux de croissance et une valorisation plus faibles de la firme. Notre etude met ainsi en evidence le conflit d’agence entre le dirigeant et les actionnaires concernant le niveau de risque de la firme, et l’influence des liens sociaux dans l’aggravation de ce conflit.
This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize tha... more This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize that the effect of CEO tenure is conditional on the firm's growth rate. The empirical analysis reveals that the effect on growth is negative in high-growth firms and positive in low-growth firms. These findings are consistent with the view that long CEO tenure is beneficial in a more stable environment, but detrimental under rapidly-changing circumstances.
Le but de cet article est de mettre en evidence ce qui amene les entreprises francaises a engager... more Le but de cet article est de mettre en evidence ce qui amene les entreprises francaises a engager des cessions d’actifs et d’en evaluer l’effet sur la richesse des actionnaires. Notre analyse indique qu’un faible niveau de rentabilite et de focalisation, et un endettement eleve constituent les facteurs determinants d’une cession. Dans l’ensemble, les entreprises francaises ont recours aux cessions pour soutenir leur performance. Toutefois, une analyse plus fine suggere qu’elles y recourent de facon insuffisante lorsqu’elles en ont le plus besoin. Les investisseurs semblent apprecier les operations de cession, comme le montre la revalorisation significative de l’entreprise au moment de leur annonce, surtout si la cession permet a l’entreprise d’accroitre sa rentabilite et de reduire son endettement.
The main originality of this paper is to empirically investigate the long-run relationship betwee... more The main originality of this paper is to empirically investigate the long-run relationship between carbone dioxide (CO2) emissions, energy use and real GDP per capita in the Middle East and North Africa (MENA) during the last three decades. Using panel cointegration tests (Westerlund, (2007) and DOLS estimation method, we validate the Environmental Kuznets Curve (EKC) hypothesis in the long run for the MENA region countries. Therefore, we conclude that oil producer countries have adopted several policy decisions in favor of CO2 emissions reduction. The estimated turning point of the EKC confirms our intuitions that only oil producer countries achieve CO2 emissions reduction goal.
HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific r... more HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L’archive ouverte pluridisciplinaire HAL, est destinée au dépôt et à la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d’enseignement et de recherche français ou étrangers, des laboratoires publics ou privés. Do CEO-Board ties affect the firm’s cost of equity? Cédric van Appelghem, Pascal Nguyen
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