Template-Type: ReDIF-Paper 1.0
Author-Name: Thierry Ané
Author-X-Name-First: Thierry
Author-X-Name-Last: Ané
Author-Workplace-Name: University of Reims, IÉSEG School of Management 
Author-Email: t.ane@ieseg.fr
Author-Name: Loredana Ureche-Rangau
Author-X-Name-First: Loredana 
Author-X-Name-Last: Ureche-Rangau
Author-Workplace-Name: IÉSEG School of Management 
Author-Email: l.ureche@ieseg.fr
Title: Does trading volume really explain stock returns volatility?
Abstract: Assuming that the variance of daily price changes and trading volume are both driven by the same latent variable measuring the number of price-relevant information arriving on the market, the Mixture of Distribution Hypothesis (MDH) represents an intuitive and appealing explanation for the empirically observed correlation between volume and volatility of speculative assets. This paper investigates to which extent the temporal dependence of volatility and volume is compatible with a MDH model through a systematic analysis of the long memory properties of power transformations of both series. It is found that the fractional differencing parameter of the volatility series reaches its maximum for a power transformation around and then decreases for other order moments while the differencing parameter of the trading volume remains remarkably unchanged. The volatility process thus exhibits a high degree of intermittence whereas the volume dynamic appears much smoother. The results suggest that volatility and volume may share common short-term movements but that their long-run behavior is fundamentally different.
Length: 36 pages
Creation-Date: 2004-07
Revision-Date: 
Publication-Status: Published in Journal of International Financial Markets Institutions and Money, July 2008, 18, pp. 216-235
File-URL:http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=971729515_AneUreche.pdf
File-Format: Application/pdf
File-Function: First version, 2004
Number: 2004-FIN-02
Classification-JEL: C13, C52, G15
Keywords: Volatility Persistence, Long Memory, Trading Volume  
Handle: RePEc:ies:wpaper:F200402

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: IESEG School of Management 
Author-Email: p.wang@ieseg.f 
Title: International Business Cycle Coherence and Phases- A spectral analysis of output fluctuations of G7 economies 
Abstract: This paper examines international linkages of co-movements in output fluctuations amongst G7 economies in the frequency domain. The paper has identified patterns in international business cycle co-movements among the G7, offering a general outlook of international business cycle co-movements and detailing the lower frequency, higher frequency and middle range characteristics of international linkages of output fluctuations. The main findings of the study are that co-movements among G7 economies are considerably stronger at lower frequencies, with clearer patterns of linkages of international output fluctuations, than those at higher frequencies and in middle ranges. The results and findings show support for real business cycle theory being extended to an international arena, with long effect real shocks impacting economies across borders.
Length: 38 pages
Creation-Date: 2008-06
Revision-Date: 
Publication-Status: 
File-URL:http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=132652026_2008-FIN-1_Wang.pdf 
File-Format: Application/pdf
File-Function: First version, 2008
Number: 2008-FIN-01
Classification-JEL: E32, C32
Keywords: business cycles, frequency domain, coherence, phase
Handle: RePEc:ies:wpaper:F200801

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: IESEG School of Management 
Author-Email: p.wang@ieseg.fr
Title: A Spectral Analysis of Business Cycle Patterns in UK Sectoral Output
Abstract: This paper studies business cycle patterns in UK sectoral output. It analyzes the distinction between white noise processes and their non-white noise counterparts in the frequency domain and further examines the associated features and patterns for the process where white noise conditions are violated. The characteristics of these sectors, arising from their institutional features that may influence business cycles behavior and patterns, are discussed. The study then investigates the output of UK GDP sectors empirically, revealing their similarities and differences in their business cycle patterns.
Length: 48 pages
Creation-Date: 2008-07
Revision-Date: 
Publication-Status: 
File-URL:http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=132652026_2008-FIN-2_Wang.pdf 
File-Format: Application/pdf
File-Function: First version, 2008
Number: 2008-FIN-02
Classification-JEL: E32, C32
Keywords: business cycle patterns, frequency domain
Handle: RePEc:ies:wpaper:F200802

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: University of Hull, IESEG School of Management 
Author-Email: p.wang@ieseg.fr
Title: A Financial Approach to the Balance of Payments
Abstract: A new approach to addressing balance of payments issues by analyzing the constituents of the financial account has been developed in this study and is referred to the financial approach accordingly. It pays attention to the different roles of foreign direct investment (FDI) and international portfolio investment (IPI), both of which have witnessed phenomenal increases in the last four decades. On the one hand, balance on the financial account exclusive of changes in official reserves is no longer negligible or inconsequential, and can no longer be neglected. On the other hand, FDI and IPI differ in countries’ international economic relations, with different effects of FDI and IPI on trade and trade balance in particular. Responding to a noticeably changed global economic environment, this new approach is effective in addressing balance of payments issues in a new era of globalization. The illuminating results lend support to the theoretical propositions, thereby opening up a new line of research for furthering theoretical and empirical inquiries.
Length: 21 pages
Creation-Date: 2009-04
Revision-Date: 
Publication-Status: 
File-URL:http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=704026423_2009-FIN-01_Wang.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 2009-FIN-01
Classification-JEL: F41, F21
Keywords: financial account, foreign direct investment, international portfolio investment, trade balance, current account
Handle: RePEc:ies:wpaper:F200901

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: University of Hull, IESEG School of Management 
Author-Email: p.wang@ieseg.fr
Title: Reverse Shooting of Exchange Rates 
Abstract: Reverse shooting of the exchange rate has been put forward in this paper by scrutinizing the adjustment and evolution of the exchange rate towards its new long-run equilibrium level following a change in money supply. Joint and sequential effects of covered interest rate parity and the sticky price on the rise, from the short-term through the long-run horizon, result in a feature of reverse shooting of the exchange rate. Regardless of what the immediate response of the exchange rate to the change in money supply can be argued for, reverse shooting homogenizes the evolution path of exchange rate adjustment and movement from different views.
Length: 17 pages
Creation-Date: 2009-04
Revision-Date: 
Publication-Status: 
File-URL:http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=920656083_2009-FIN-02_Wang.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 2009-FIN-02
Classification-JEL: F31, F37 
Keywords: exchange rate, reverse shooting 
Handle: RePEc:ies:wpaper:F200902

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: IESEG School of Management 
Author-Email: p.wang@ieseg.fr
Title: A Triangular Analysis of Exchange Rate Determination and Adjustments - The case of RMB, the US dollar and the euro
Abstract: Exchange rate determination is of phenomenal importance in international economic relations and should be scrutinized with diverse perspectives and from various points of view. While RMB is pegged to the US dollar, the exchange rate between RMB and the euro is not fixed, due to that the exchange rate between the euro and the US dollar is not fixed. Since RMB is not a small currency, its pegging to the US dollar would have a profound effect on the floating exchange rate between the US dollar and the euro, forcing the exchange rate between the US dollar and the euro to depart from a “fair” market determined rate if the exchange rate between the US dollar and RMB is not set right. The above scenario provides us with a means to assess the fairness of exchanges rates resulting from pegs. Our analysis suggests that when RMB is overvalued relative to the US dollar, the euro would tend to be overvalued relative to the US dollar too, and vice versa. This in turn leads to a channel for examining whether RMB is undervalued or overvalued against the US dollar, an argument all stemming from the effective peg of RMB to the US dollar. It is to scrutinize the exchange rate of the US dollar vis-à-vis the euro to establish ultimately whether RMB is undervalued or overvalued vis-à-vis the US dollar. That is, an overvalued euro currency vis-à-vis the US dollar would imply a kind of overvaluation of RMB vis-à-vis the US dollar; or put it another way, an undervalued euro currency vis-à-vis the US dollar would justify that RMB is undervalued vis-à-vis the US dollar. As a corollary derived from the above analysis, if the objective of the monetary authorities is to float RMB at the right exchange rate and at the right time, a triangular rotation approach to anchoring currencies can be appropriate. A peg of RMB to a basket of currencies is unfeasible, inconvenient and moreover, unable to avoid being criticized for pegging at an artificially low value as its peg to the US dollar. While it has been increasingly acknowledged that competitive advantages in international trade in the long run can rarely benefit from distorted exchange rates, a notion of currency undervaluation remains cumbersome. 
Length: 22 pages
Creation-Date: 2010-07
Revision-Date: 
Publication-Status: 
File-URL: http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=779908282_2010-FIN-01_Wang.pdf
File-Format: Application/pdf
File-Function: First version, 2010
Number: 2010-FIN-01
Classification-JEL: F3 
Keywords: exchange rate, RMB, US dollar, euro 
Handle: RePEc:ies:wpaper:F201001

Template-Type: ReDIF-Paper 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Workplace-Name: IESEG School of Management 
Author-Email: p.wang@ieseg.fr
Title: Assessment on Valuation of RMB – a triangular analysis approach  
Length: 28 pages
Creation-Date: 2010-10
Revision-Date: 
Publication-Status: 
File-URL: http://my.ieseg.fr/bienvenue/DownloadDoc.asp?Fich=1072103470_2010-FIN-02_Wang.pdf
File-Format: Application/pdf
File-Function: First version, 2010
Number: 2010-FIN-02
Classification-JEL: F3 
Keywords: exchange rate, RMB, US dollar, euro 
Handle: RePEc:ies:wpaper:F201002

Template-Type: ReDIF-Paper 1.0
Author-Name: Rama Cont
Author-X-Name-First: Rama 
Author-X-Name-Last: Cont
Author-Workplace-Name: Laboratoire de Probabilités et Modèles Aléatoires CNRS
Author-Name: Lakshithe Wagalath
Author-X-Name-First: Lakshithe
Author-X-Name-Last: Wagalath
Author-Workplace-Name: IESEG School of Management 
Author-Email: l.wagalath@ieseg.fr
Title: Fire sales forensics: measuring endogenous risk  
Abstract: We propose a tractable framework for quantifying the impact of fire sales on the volatility and correlations of asset returns in a multi-asset setting. Our results enable to quantify the impact of fire sales on the covariance structure of asset returns and provide a quantitative explanation for spikes in volatility and correlations observed during liquidation of large portfolios. These results allow to test for the presence of fire sales during a given period of time and to estimate the impact and magnitude of fire sales from observation of market prices: we give conditions for the identifiability of model parameters from time series of asset prices, propose an estimator for the magnitude of fire sales in each asset class and study the consistency and large sample properties of the estimator. We illustrate our estimation methodology with two empirical examples: the hedge fund losses of August 2007 and the Great Deleveraging following the default of Lehman Brothers in Fall 2008.   
Length: 37 pages
Creation-Date: 2013-08
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2013-FIN-01_Wagalath.pdf
File-Format: Application/pdf
File-Function: 
Number: 2013-FIN-01
Classification-JEL:
Keywords:  
Handle: RePEc:ies:wpaper:F201301

Template-Type: ReDIF-Paper 1.0
Author-Name: Lakshithe Wagalath
Author-X-Name-First: Lakshithe
Author-X-Name-Last: Wagalath
Author-Workplace-Name: IESEG School of Management 
Author-Email: l.wagalath@ieseg.fr
Title: Modeling the rebalancing slippage of Leveraged Exchange-Traded Funds 
Abstract: Leveraged exchange-traded funds are designed to track a multiple of the daily return of an underlying benchmark index. In order to keep a fixed exposure to the benchmark index, leveraged ETFs have to rebalance their positions everyday, generating a structural ’rebalancing slippage’ which has been documented in several empirical studies. This paper quantifies the rebalancing slippage of leveraged ETFs by developing a tractable model for the dynamics of leveraged funds, which takes into account the impact of active management by leveraged ETFs. We characterize the rebalancing strategy of the leveraged fund and its impact on the value of the leveraged ETF and we model its dynamics in discrete-time. We show that the rebalancing impact systematically diminishes the daily return of the leveraged ETF and that, over a holding period of more than one day, leveraged ETFs develop a tracking-error which can be decomposed between a compounding deviation – that has already been documented and quantified in previous studies – and a rebalancing deviation. The study of the continuous-time limit of the multi-period model allows us to obtain analytical formulas for the rebalancing slippage and the tracking-error of the leveraged ETF. Our theoretical results are consistent with empirical studies which find that tracking-error and rebalancing impact are larger in periods of high volatility and for leveraged ETFs with negative leverage ratios. 
Length: 16 pages
Creation-Date: 2013-08
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2013-FIN-02_Wagalath.pdf
File-Format: Application/pdf
File-Function: 
Number: 2013-FIN-02
Classification-JEL:
Keywords:  
Handle: RePEc:ies:wpaper:F201302

Template-Type: ReDIF-Paper 1.0
Author-Name: Nikola Gradojevic
Author-X-Name-First: Nikola
Author-X-Name-Last: Gradojevic
Author-Workplace-Name: IESEG School of Management (LEM-CNRS)
Author-Email: n.gradojevic@ieseg.fr
Title: Foreign exchange customers and dealers: Who’s driving whom?
Abstract: This paper tests the theoretical assumption of the foreign exchange market microstructure that dealers and non-dealer customers interact over discrete trading rounds. An exhaustive frequency-domain analysis reveals that the interaction is limited and mainly due to the instability of financial markets. The principal finding is that the trading activity of dealers is able to predict the customer order flow at low frequencies with wavelengths longer than roughly a week. In all, the evidence shows that non-financial customers are not as passive as some other research has suggested.
Length: 11 pages
Creation-Date: 2013-11
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2013-FIN-03_Gradojevic.pdf
File-Format: Application/pdf
File-Function: 
Number: 2013-FIN-03
Classification-JEL: F31, G15, C58
Keywords: Foreign Exchange Market; Market Microstructure; Order Flow; Frequency-domain; Causality
Handle: RePEc:ies:wpaper:F201303


Template-Type: ReDIF-Paper 1.0
Author-Name: Rama Cont
Author-X-Name-First: Rama
Author-X-Name-Last: Cont
Author-Workplace-Name: Imperial College and Université Pierre et Marie Curie
Author-Name: Lakshithe Wagalath
Author-X-Name-First: Lakshithe
Author-X-Name-Last: Wagalath
Author-Workplace-Name: IESEG School of Management (LEM-CNRS) 
Author-Email: l.wagalath@ieseg.fr
Title: Institutional Investors and the Dependence Structure of Asset Returns
Abstract: We propose a model of a financial market with multiple assets, which takes into account the impact of a large institutional investor rebalancing its positions, so as to maintain a fixed allocation in each asset. We show that feedback effects can lead to significant excess realized correlation between asset returns and modify the principal component structure of the (realized) correlation matrix of returns. Our study naturally links, in a quantitative manner, the properties of the realized correlation matrix – correlation between assets, eigenvectors and eigenvalues – to the sizes and trading volumes of large institutional investors. In particular, we show that even starting with uncorrelated ’fundamentals’, fund rebalancing endogenously generates a correlation matrix of returns with a first eigenvector with positive components, which can be associated to the market, as observed empirically. Finally, we show that feedback effects flatten the differences between assets’ expected returns and tend to align them with the returns of the institutional investor’s portfolio, making this benchmark fund more difficult to beat, not because of its strategy but precisely because of its size and market impact.
Creation-Date: 2014-02
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2014-ACF-01_Wagalath.pdf
File-Format: Application/pdf
File-Function: 
Number: 2014-ACF-01
Classification-JEL: 
Keywords: 
Handle: RePEc:ies:wpaper:F201401

Template-Type: ReDIF-Paper 1.0
Author-Name: Nikola Gradojevic
Author-X-Name-First: Nikola
Author-X-Name-Last: Gradojevic
Author-Workplace-Name: IESEG School of Management (LEM-CNRS)
Author-Email: n.gradojevic@ieseg.fr
Title: Informativeness of the Trade Size in an Electronic Foreign Exchange Market
Abstract: This article studies a trading strategy that relies on private information in an electronic spot foreign exchange market. The framework is a high-frequency extension of a structural microstructure model by Easley et al. (1996). The results relate the informational content of trading to the trade size and suggest that the probability of the informed large trading is significantly higher than the probability of uninformed large trading.
Length: 14 pages
Creation-Date: 2014-03
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2014-ACF-02_Gradojevic.pdf
File-Format: Application/pdf
File-Function: 
Number: 2014-ACF-02
Classification-JEL: G0, G1, F3
Keywords: Foreign Exchange Market; Market Microstructure; Order Flow; Frequency-domain; Causality
Handle: RePEc:ies:wpaper:F201402

Template-Type: ReDIF-Paper 1.0
Author-Name: Nikola Gradojevic
Author-X-Name-First: Nikola
Author-X-Name-Last: Gradojevic
Author-Workplace-Name: IESEG School of Management (LEM-CNRS)
Author-Email: n.gradojevic@ieseg.fr
Author-Name: Camillo Lento
Author-X-Name-First: Camillo 
Author-X-Name-Last: Lento
Author-Workplace-Name: Faculty of Business Administration, Lakehead University
Title: Multiscale Analysis of Foreign Exchange Order Flows and Technical Trading Profitability
Abstract: This paper investigates the multiscale (frequency-dependent) relationship between technical trading profitability and feedback trading effects in the Canada/U.S. dollar foreign exchange market. The results suggest weak evidence that technical trading activities of financial and non-financial customers drive frequent violations of the FX market microstructure assumption that exchange rate movements are driven by order flow. After controlling for transaction costs, we find that the contribution of financial customers in feedback trading dominates the contribution of non-financial customers at lower frequencies, while the opposite holds at higher frequencies. An additional, novel contribution is that technical indicators constructed from order flows can be profitable.
Length: 33 pages
Creation-Date: 2013-09
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2014-ACF-03_Gradojevic.pdf
File-Format: Application/pdf
File-Function: 
Number: 2014-ACF-03
Classification-JEL: F31,G14,C53
Keywords: Foreign Exchange Markets; Order Flows; Technical Trading; Frequency Domain
Handle: RePEc:ies:wpaper:F201403

Template-Type: ReDIF-Paper 1.0
Author-Name: Rouven Trapp
Author-X-Name-First: Rouven	
Author-X-Name-Last: Trapp
Author-Workplace-Name: TU Dortmund University 
Author-Name: Christoph Endenich
Author-X-Name-First: Christoph
Author-X-Name-Last: Endenich
Author-Workplace-Name: IESEG School of Management (LEM-CNRS)
Author-Name: Andreas Hoffjan
Author-X-Name-First: Andreas 
Author-X-Name-Last: Hoffjan
Author-Workplace-Name: TU Dortmund University 
Title: Towards Intellectual Monism? An Institutional Perspective on Management Accounting Research
Abstract: Management accounting is widely acknowledged for its diverse and innovative research approaches that contribute to a holistic understanding of management accounting. Nevertheless, the commodification of research is claimed to foster an increasing self-referentiality and narrowness of research approaches. Building on institutional theory and considering that editorial routines are powerful institutions that may shape the research endeavours of management accounting scholars, our paper analyses the composition and academic backgrounds of the editorial staffs of the two leading management accounting journals – Management Accounting Research and the Journal of Management Accounting Research. We argue that these analyses shed light on potentially narrowing research agendas in management accounting and aid the anticipation of potential future developments. Our findings reveal considerable differences concerning the research profiles of the schools that have graduated most of the editorial staff members. Whereas graduates from these influential schools strongly focus on control issues, we identify a diversified set of underlying theoretical and methodological approaches. Based on the assumption that the mind-set of the editorial staff members might have an impact on the type of research accepted for publication, we argue that a broad set of research approaches has a fair chance for publication in the two leading management accounting journals.
Length: 28 pages
Creation-Date: 2014-05
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2014-ACF-04_Endenich.pdf
File-Format: Application/pdf
File-Function: 
Number: 2014-ACF-04
Classification-JEL: 
Keywords: Management Accounting Research Diversity, Institutional Theory, Editorial Boards, Publications, Journals
Handle: RePEc:ies:wpaper:F201404

Template-Type: ReDIF-Paper 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Workplace-Name: IESEG School of Management (LEM 9221-CNRS) 
Author-Email: y.braouezec@ieseg.fr
Author-Name: Lakshithe Wagalath
Author-X-Name-First: Lakshithe
Author-X-Name-Last: Wagalath
Author-Workplace-Name: IESEG School of Management (LEM 9221-CNRS) 
Author-Email: l.wagalath@ieseg.fr
Title: Risk-based capital requirements and optimal liquidation in a stress scenario
Abstract: We develop a simple yet realistic framework to analyze the impact of an exogenous shock on a bank's balance-sheet and its optimal response when it is constrained to maintain its risk-based capital ratio above a regulatory threshold. We show that in a stress scenario, capital requirements may force the bank to shrink the size of its assets and we exhibit the bank's optimal strategy as a function of regulatory risk-weights, asset market liquidity and shock size. When financial markets are perfectly competitive, we show that the bank is always able to restore its capital ratio above the required one. However, for banks constrained to sell their loans at a discount and/or with a positive price impact when selling their marketable assets (large banks) we exhibit situations in which the deleveraging process generates a death spiral. We then show how to calibrate our model using annual reports of banks and study in detail the case of the French bank BNP Paribas. Finally, we suggest how our simple framework can be used to design a systemic capital surcharge
Length: 44 pages
Creation-Date: 2016-05
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2012/03/2016-ACF-01_Braouezec_Wagalath.pdf
File-Format: Application/pdf
File-Function: 
Number: 2016-ACF-01
Classification-JEL: 
Keywords: Risk-weighted assets (RWA), stress-tests, fire sales, market impact, optimal liquidation, systemic capital surcharge
Handle: RePEc:ies:wpaper:F201601


Template-Type: ReDIF-Paper 1.0
Author-Name: Franklin Allen
Author-X-Name-First: Franklin 
Author-X-Name-Last: Allen
Author-Workplace-Name: Imperial College London
Author-Name: Laura Bartiloro
Author-X-Name-First: Laura 
Author-X-Name-Last: Bartiloro
Author-Workplace-Name: Banca d'Italia
Author-Name: Xian Gu
Author-X-Name-First: Xian  
Author-X-Name-Last: Gu
Author-Workplace-Name: Central University of Finance and Economics
 
Author-Name: Oskar Kowalewksi

Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi
 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)

Title: Does Economic Structure Determine Financial Structure?
Abstract: In this paper, we examine the relationship between the structure of the real economy and a country's financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country’s financial structure. Using data for 100 countries, we find a significant positive relationship between real economic structure and financial structure. We find that changes in the economic structure of a country influence the evolution of its financial system. This suggests that financial institutions and capital markets change in response to the structure of industries.
Length: 51 pages
Creation-Date: 2016-11
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2012/03/2016-ACF-02_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2016-ACF-02
Classification-JEL: G20; O14; O16
Keywords: financial system, economic structure
Handle: RePEc:ies:wpaper:F201602

Template-Type: ReDIF-Paper 1.0
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar 
Author-X-Name-Last: Hasan
Author-Workplace-Name: Fordham University and Bank of Finland
Author-Name: Krzysztof Jackowicz
Author-X-Name-First:Krzysztof 
Author-X-Name-Last: Jackowicz
Author-Workplace-Name: Kozminski University
Author-Name: Oskar Kowalewksi

Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi
 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Lukasz Kozlowski
Author-X-Name-First: Lukasz  
Author-X-Name-Last: Kozlowski
Author-Workplace-Name: 
Kozminski University 
Title: The Economic Impact of Changes in the Local Bank Presence
Abstract: The study analyses the economic consequences of changes in the local bank presence. Using a unique dataset of banks, firms, and counties in Poland over the period 2009-2014, we show that changes in local banking that increase the role of the relationship banking model are associated with improvements in local labour markets and easier access of SMEs to bank debt. Moreover, radical changes in the ownership structure of large commercial banks result in a more rapid new firm creation. Finally, we document that young companies’ performance is more sensitive to the instability of local banking markets.
Length: 44 pages
Creation-Date: 2017-01
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2012/03/2017-ACF-01_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2017-ACF-01
Classification-JEL: G21; G32; R11
Keywords: local economic activity, SMEs, entrepreneurship, local banks
Handle: RePEc:ies:wpaper:F201701

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewksi 
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Piotr Spiewanowski
Author-X-Name-First: Piotr
Author-X-Name-Last: Spiewanowski
Author-Email: piotr.spiewanowski@gmail.com
Author-Workplace-Name: Institute of Economics of the Polish Academy of Science, Poland
Title: Stock market response to potash mine disasters
Abstract: We examine the stock market reaction to natural and man-made disasters in potash mines. We use a sample of 44 mining accidents worldwide over the period 1995-2016. A quarter of the accidents were the result of a natural disaster, such as flooding, that often ended in the closure of the potash mine. The remaining accidents were caused mainly by human error, and almost 50% were work accidents often associated with serious injury or death. On average, mining firms experience a drop in their market value of 0.89% on the day of a disaster. However, we observe a significantly stronger response of the stock market to natural events. Indeed, the regression analysis confirms that the firm’s market loss is significantly related to the seriousness of the accident. On the other hand, we do not find any other micro- or macro-level factors that determine the stock market reaction following a disaster.
Length: 45 pages
Creation-Date: 2017-03
Revision-Date: 
Publication-Status: 
File-URL: http://www.ieseg.fr/wp-content/uploads/2012/03/2017-ACF-02_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2017-ACF-02
Classification-JEL: G14, Q27, Q51
Keywords: potash mine, disasters, event study, working accident, catastrophe
Handle: RePEc:ies:wpaper:F201702

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewksi 
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Name: Pawel Pisany
Author-X-Name-First: Pawel
Author-X-Name-Last: Pisany
Author-Email:  ppisany@gmail.com
Author-Workplace-Name: Institute of Economics of the Polish Academy of Science, Collegium of World Economy, Warsaw School of Economics, Poland
Title: What is driving the corporate bond market
development in Asia?
Abstract: We investigate the development of corporate bond markets in 10 Asian countries from 1995 to 2014. Using panel data on the market size and total issue of bonds by financial and non-financial companies, we confirm that macroeconomic and institutional factors are related to the depth of the market. In addition, we show that the issuance of bonds is also determined by other factors that strongly depend on the issuer type. We show that creditor rights and institutional quality are important in explaining the issuance of bonds by financial institutions. Furthermore, we determine a strong positive association between the level of domestic credit and the market and issue size of corporate bonds. In our opinion, the results indicate that there is a positive relationship between the development of the corporate bond market and the banking sector. These findings indicate that increased demand for bank loans induced the issuance of bonds by financial institutions which, in turn, may have led to the development of corporate bond markets in Asia.
Length: 39 pages
Creation-Date: 2017-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2017-ACF-03_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2017-ACF-03
Classification-JEL: F36, O16, G15
Keywords: corporate bond market, bond issuance, crisis, banking sector, Asia
Handle: RePEc:ies:wpaper:F201703

Template-Type: ReDIF-Paper 1.0
Author-Name: Hinnerk Gnutzmann
Author-X-Name-First: Hinnerk 
Author-X-Name-Last: Gnutzmann
Author-Workplace-Name: Leibniz University Hannover
Author-Name: Oskar Kowalewksi 
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Name: Piotr Spiewanowski
Author-X-Name-First: Piotr
Author-X-Name-Last: Spiewanowski
Author-Email: piotr.spiewanowski@inepan.waw.pl
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences
Title: Market Structure and Supply Shocks: Evidence from Mining Disasters
Abstract: This paper provides new evidence on how imperfectly competitive markets with excess capacity mitigate the adverse impact of supply shocks on prices. We study the potash market, which is controlled by a syndicate that assigns output quotas in proportion to production capacity of its members. This sharing rule creates incentives for excess capacity investment. Hence, it insulates the market from the impact of extreme events. Using a novel data set of potash mine disasters, we show that permanent or long-term loss of up to 4% of global or 20% of country production capacity does not affect the production levels and the commodity prices.
Length: 42 pages
Creation-Date: 2018-01
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2018-ACF-01_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-01
Classification-JEL: Q31, L13, Q54, L72
Keywords: commodity prices, supply shocks, market structure, resilience, syndicates
Handle: RePEc:ies:wpaper:F201801

Template-Type: ReDIF-Paper 1.0
Author-Name: Franklin Allen
Author-X-Name-First: Franklin
Author-X-Name-Last: Allen
Author-Workplace-Name: Imperial College London, United Kingdom
Author-Email: f.allen@imperial.ac.uk
Author-Name: Xian Gu
Author-X-Name-First: Xian
Author-X-Name-Last: Gu
Author-Workplace-Name: Central University of Finance & Economics, China
Author-Name: Oskar Kowalewksi
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewksi 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Title: The Interbank Market Puzzle
Abstract: This study documents significant differences in the interbank market lending and borrowing levels across countries. We argue that the existing differences in interbank market usage can be explained by the trust of the market participants in the stability of the country’s banking sector and counterparties. We test our assumptions by employing different proxies for trust in the countries’ banking sectors and by controlling for bank-specific risk. We find that banks originating from a country that has experienced longer periods of banking crises or more bank failures are able to attract less interbank deposits. However, we find that the quality of legal regulations and institutions can help mitigate the adverse impact of the low level of trust in the banking system. Hence, institutional factors might partially substitute for the limited trust and enhance interbank activity.
Length: 73 pages
Creation-Date: 2018-02
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2018-ACF-02_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-02
Classification-JEL: G01, G21, G28
Keywords: interbank market, trust, counterparty risk, crises, legal enforcement, regulations
Handle: RePEc:ies:wpaper:F201802

Template-Type: ReDIF-Paper 1.0
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung 
Author-X-Name-Last: Hwang
Author-Email: shwang@skku.edu
Author-Workplace-Name: College of Economics, Sungkyunkwan University, Seoul, Korea
Author-Name: Alexandre Rubesam
Author-X-Name-First: Alexandre 
Author-X-Name-Last: Rubesam
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: a.rubesam@ieseg.fr
Title: Searching the Factor Zoo
Abstract: Hundreds of factors have been proposed to explain asset returns during the past two decades, a situation which Cochrane (2011) has dubbed “a zoo of new factors”. In this paper, we develop a Bayesian approach to explore the space of possible linear factor models in the “zoo”. We conduct an extensive search for promising models using a set of 83 candidate factors based on the literature and applying the methodology to thousands of individual stocks. Despite the large number of factors that have been proposed, our results show that (i) only a handful of factors appear to explain the returns on individual stocks; (ii) from these, the only factor that is consistently selected over time is the market excess return; and (iii) other factors which are selected during certain periods are not those in widely used multi-factor models.
Length: 55 pages
Creation-Date: 2018-03
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2018-ACF-03_Rubesam-1.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-03
Classification-JEL: 
Keywords: Factor selection, Bayesian variable selection, Seemingly Unrelated Regressions
Handle: RePEc:ies:wpaper:F201803

Template-Type: ReDIF-Paper 1.0
Author-Name: Alexandre Rubesam
Author-X-Name-First: Alexandre 
Author-X-Name-Last: Rubesam
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: a.rubesam@ieseg.fr
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung 
Author-X-Name-Last: Hwang
Author-Email: shwang@skku.edu
Author-Workplace-Name: College of Economics, Sungkyunkwan University, Seoul, Korea
Title: Do Smart Beta ETFs Capture Factor Premiums? A Bayesian Perspective
Abstract: We investigate which factors matter to explain the returns of smart beta and conventional ETFs using a Bayesian approach. Smart beta ETFs are well explained by the market, size and the betting-against-beta factor, whereas conventional ETFs are well explained by the market, the quality-minus-junk factor, and a value factor. Smart beta ETFs benefit from their exposure to the betting against beta factor, however this is o↵set by their negative alphas, while the factor exposure of conventional ETFs is purely detrimental. Our results suggest investors should be skeptical about the ability of smart beta ETFs to capture factor premiums.
Length: 26 pages
Creation-Date: 2018-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2018-ACF-04.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-04
Classification-JEL: 
Keywords: Smart Beta, strategic beta, factor investing, factor selection, Bayesian variable selection
Handle: RePEc:ies:wpaper:F201804


Template-Type: ReDIF-Paper 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: y.braouezec@ieseg.fr
Title: Target Capital Ratio and Optimal Channel(s) of Adjustment: A Simple Model with Empirical Applications to European Banks
Abstract: Why do banks decide to reach their target capital ratio by selling assets and/or issuing new shares when each channel of adjustment is costly? We offer a simple framework to answer this question in which the aim of the bank is to minimize the total adjustment cost subject to the target's constraint and we derive its optimal strategy. We then compare our model's predictions to the decisions taken by two systemic banks to issue new shares in 2017 and for which the target ratio was publicly disclosed. Predictions are consistent with the observed decisions. Smaller banks are also considered. 
Length: 38 pages
Creation-Date: 2018-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2018-ACF-05_may.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-05
Classification-JEL: 
Keywords: Equity issuance, asset sale, price impact, target capital ratio, large banks 
Handle: RePEc:ies:wpaper:F201805


Template-Type: ReDIF-Paper 1.0
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Hasan
Author-Workplace-Name: Fordham University, Bank of Finland and University of Sydney
Author-Email: 
Author-Name: Krzysztof Jackowicz
Author-X-Name-First: Krzysztof
Author-X-Name-Last: Jackowicz
Author-Email: 
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland
Author-Name: Robert Jagiełło
Author-X-Name-First: Robert
Author-X-Name-Last: Jagiełło
Author-Email: 
Author-Workplace-Name: Warsaw School of Economics and National Bank of Poland
Author-Name:Oskar Kowalewski 
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski 
Author-Email: o.kowalewski@ieseg.fr
Author-Workplace-Name:IÉSEG School of Management and LEM-CNRS (UMR 9221)
Author-Name: Łukasz Kozłowski 
Author-X-Name-First: Łukasz
Author-X-Name-Last: Kozłowski 
Author-Email: 
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland
Title: Is there anything special about local banks as SME lenders? Evidence from bank corrective programs
Abstract: We re-investigate the special role of local banks in shaping the financial constraints of small and medium-sized enterprises (SMEs). Using a comprehensive dataset from an emerging economy, including the information on local bank corrective programs, we find that local banks remain privileged and, most importantly, difficult to replace lenders for SMEs. We show that the deterioration of a SME’s access to bank financing linked to local banks’ corrective programs depends on the presence of other healthy local banks in the SME’s vicinity. Furthermore, we demonstrate that healthy local banks, when their neighboring peers experience financial difficulties, substantially increase lending.
Length: 41 pages
Creation-Date: 2018-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2018/10/2018-ACF-06_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2018-ACF-06
Classification-JEL: 
Keywords: Smart Beta, strategic beta, factor investing, factor selection, Bayesian variable selection
Handle: RePEc:ies:wpaper:F201806

Template-Type: ReDIF-Paper 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: y.braouezec@ieseg.fr
Author-Name: Lakshithe Wagalath
Author-X-Name-First: Lakshithe
Author-X-Name-Last: Wagalath
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: l.Wagalath@ieseg.fr
Title: Strategic fire-sales and price-mediated contagion in the banking system
Abstract: We consider a price-mediated contagion framework in which each bank, after an exogenous shock, may have to sell assets in order to comply with regulatory constraints. Interaction between banks takes place only through price impact. We characterize the equilibrium of the strategic deleveraging problem and we calibrate our model to publicly-available data, the US banks that were part of the 2015 regulatory stress-tests. We then consider a more sophisticated model in which each bank is exposed to two risky assets (marketable and not marketable) and is only able to sell the marketable asset. We calibrate our model using the six banks with signi˝cant trading operations and we show that, depending on the price impact, the contagion of failures may be signi˝cant. Our results may be used to re˝ne current stress testing frameworks by incorporating potential contagion mechanisms between banks
Length: 50 pages
Creation-Date: 2017-09
Revision-Date: 2018-08
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2018/11/2017-ACF-05_Braouezec-reviewed08-18.pdf
File-Format: Application/pdf
File-Function: 
Number: 2017-ACF-05
Classification-JEL: 
Keywords: Fire sales, price-mediated contagion, Nash equilibrium with strategic complemen-tarities, CCAR 2015, macro-prudential stress-tests
Handle: RePEc:ies:wpaper:F201705

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: y.kowalewski@ieseg.fr
Author-Name: Aleksandra Majda-Kariozen
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Majda-Kariozen
Author-Workplace-Name: Faculty of Management, University of Lodz
Author-Email: aleksandra.majda@uni.lodz.pl
Author-Name: Blazej Socha
Author-X-Name-First: Blazej
Author-X-Name-Last: Socha
Author-Workplace-Name: Faculty of Management, University of Lodz
Author-Email: blazej.socha@uni.lodz.pl
Title: Founder Involvement in CEO Turnover
Abstract: We study the role of a company founder in its internal governance. Using a sample of 484 CEO turnovers for 2000–2015, we establish that CEOs are fired for poor performance. However, the likelihood of a poor-performing founder-CEO being fired is lower than that of an outsider CEO. Moreover,having a founder as a member of the executive or supervisory board decreasesthe likelihood that a CEO will be dismissed for poor performance. Similarly,founder ownership may have the same effect on CEO turnover. Finally, being a founder does not guarantee a poor-performing CEO a chairman position after being fired.

Length: 42 pages
Creation-Date: 2019-01
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2019/01/2019-ACF-01_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2019-ACF-01
Classification-JEL: 
Keywords: Founder involvement; CEO turnover; Corporate governance;
Firm performance

Handle: RePEc:ies:wpaper:F201807


Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski 
Author-Workplace-Name: IESEG School of Management (LEM-CNRS-UMR 9221)
Author-Email: y.kowalewski@ieseg.fr
Author-Name: 
Author-X-Name-First: 
Author-X-Name-Last: 
Author-Workplace-Name: 
Author-Email: 
Author-Name: 
Author-X-Name-First:
Author-X-Name-Last: 
Author-Workplace-Name: 
Author-Email: 
Title: Does foreign bank branch activity affect lending behavior?
Abstract: In this study, we examine the effects of foreign branch activity on commercial banks in the Central, Eastern, and Southeastern European countries for the period 1995-2015. We show
that more foreign bank branches are present in countries that have higher taxes and regulatory restrictions on bank activity. The increased activity of bank branches negatively aects
foreign-owned bank lending, and to a lesser extent, that of state-owned banks. We attribute this finding to the fact that branches and foreign-owned banks compete for the same type
of clients, namely, multinational corporations. The branch eect seems to be larger for corporate loans than for consumer loans, which confirms our assumptions. Moreover, we find
that the negative effect is stronger for foreign banks owned by multinational banks than by non-bank entities.
Length: 47 pages
Creation-Date: 2019-03
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2012/03/2019-ACF-02_Kowalewski.pdf
File-Format: Application/pdf
File-Function: 
Number: 2019-ACF-02
Classification-JEL: 
Keywords: foreign bank branch, lending, subsidiary, crisis, developing markets, EU
Firm performance

Handle: RePEc:ies:wpaper:F201808

Template-Type: ReDIF-Paper 1.0
Author-Name: Olivier ACCOMINOTTI
Author-X-Name-First: Olivier
Author-X-Name-Last: ACCOMINOTTI
Author-Workplace-Name: London School of Economics & CEPR
Author-Email: o.accominotti@lse.ac.uk
Author-Name: Marie BRIERE
Author-X-Name-First: Marie
Author-X-Name-Last: BRIERE
Author-Workplace-Name: AMUNDI & Paris-Dauphine University
Author-Email: marie.briere@amundi.com
Author-Name: Aurore BURIETZ
Author-X-Name-First: Aurore
Author-X-Name-Last: BURIETZ
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: a.burietz@ieseg.fr
Author-Name: Kim OOSTERLINCK
Author-X-Name-First: Kim
Author-X-Name-Last: OOSTERLINCK
Author-Workplace-Name: Université Libre de Bruxelles (ULB) & CEPR
Author-Email:koosterlinck@ulb.ac.be
Author-Name: Ariane SZAFARZ
Author-X-Name-First: Ariane
Author-X-Name-Last: SZAFARZ
Author-Workplace-Name: ULB & New York Univeristy (NYU)
Author-Email: aszafarz@ulb.ac.be

Title: Did Globalization Kill Contagion?
Abstract: Does financial globalization lead to contagion? We scrutinize linkages between international stock
markets in a long historical perspective (1880-2014). Our results highlight that without
globalization, contagion cannot exist. However, if cross-market correlations are very high,
globalization kills contagion. We show that financial contagion was absent from stock markets in
both the period of deglobalization of 1918-1971 and the era of “extreme” globalization of 1972-
2014 but was present in the period of “moderate” globalization of 1880-1914. Our results suggest
that contagion could become a significant problem if financial markets return to a more moderate
level of globalization.
Length: 62 pages
Creation-Date: 2020-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-01.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-01
Classification-JEL: F36, F65, G15, N20
Keywords: contagion, globalization, financial crisis, historical finance

Handle: RePEc:ies:wpaper:F202001

Template-Type: ReDIF-Paper 1.0
Author-Name: Aurore BURIETZ
Author-X-Name-First: Aurore
Author-X-Name-Last: BURIETZ
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: a.burietz@ieseg.fr
Author-Name: Loredana URECHE-RANGAU
Author-X-Name-First: Loredana
Author-X-Name-Last: URECHE-RANGAU
Author-Workplace-Name: Faculty of Economics and Business, Université de Picardie Jules Vernes, CRIISEA
Author-Email: loredana.ureche@u-picardie.fr

Title: Better the Devil you Know: Home and Sectoral
Biases in Bank Lending
Abstract: This paper empirically investigates bank lending decisions and the extent to which they are influenced by specific
preferences in terms of geographical location and industry. We study whether banks develop a field of expertise
and focus on it, or whether they prefer to diversify during both normal and crisis times. We manually built an
original database of syndicated loans for banks in the four major banking systems in the eurozone, to estimate the
determinants of loans’ amounts between 2005 and 2013. We show that bank lending is influenced by both the
geographical location and the industry of the borrower. Our findings highlight a domestic bias and a sectoral bias
with banks lending more to their domestic borrowers and to industries they are specialized in.
Length: 31 pages
Creation-Date: 2020-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-02.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-02
Classification-JEL: F34, G01, G21
Keywords: Credit supply, home bias, sectoral bias, syndicated loan market, financial crisis

Handle: RePEc:ies:wpaper:F202002

Template-Type: ReDIF-Paper 1.0
Author-Name: Aurore BURIETZ
Author-X-Name-First: Aurore
Author-X-Name-Last: BURIETZ
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: a.burietz@ieseg.fr
Author-Name: Matthieu PICAULT
Author-X-Name-First: Matthieu
Author-X-Name-Last: PICAULT
Author-Workplace-Name: IESEG School of Management
Author-Email: m.picault@ieseg.fr

Title: Lenders’ asymmetric reaction to the ECB’s non-standard
policies in the syndicated loan market
Abstract: We investigate the effectiveness of the bank lending channel, that is, whether, and if so how, the
accommodative monetary policy of the European Central Bank (ECB) mitigated the disruption in
syndicated bank lending between 2008 and 2014. We show that both standard and non-standard
measures of the ECB’s accommodating monetary policy alleviated banks’ funding constraints,
helping support their lending activities in the syndicated loan market. We highlight a crosssectional
asymmetry in the banks’ responses to non-standard measures, with small or highly
capitalised banks providing loans with higher amounts. In the European region, bank size appears
to be the most discriminating factor when it comes to distinguishing between banks.
Length: 44 pages
Creation-Date: 2020-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-03.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-03
Classification-JEL: E52, F34, G21
Keywords: Syndicated loans, financial crisis, bank lending channel, European Central Bank, Nonstandard
monetary policies

Handle: RePEc:ies:wpaper:F202003

Template-Type: ReDIF-Paper 1.0
Author-Name: Jérémie BERTRAND
Author-X-Name-First: Jérémie
Author-X-Name-Last: BERTRAND
Author-Workplace-Name: IESEG School of Management 
Author-Email: j.bertrand@ieseg.fr
Author-Name: Hélène de BREBISSON
Author-X-Name-First: Hélène
Author-X-Name-Last: DE BREBISSON
Author-Workplace-Name: IESEG School of Management 
Author-Email: h.stefaniutyn@ieseg.fr
Author-Name: Aurore BURIETZ
Author-X-Name-First: Aurore
Author-X-Name-Last: BURIETZ
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: a.burietz@ieseg.fr

Title: Do IFRS support debt issue for European private
companies?
Abstract: This paper studies the impact of International Financial Reporting Standards (IFRS) adoption
on debt issue. It uses empirical analysis to investigate whether European privately held firms
can raise debt better by reporting their consolidated financial information according to IFRS
rather than local accounting practices. Using fixed-effect regressions on 8,391 firms in 22
countries from 2005 to 2018, the authors show that IFRS adoption leads to better private debt
issue for non-listed firms, especially if the firms are opaque or are located in common law
countries. The results remain the same regardless of specification and are robust to several
alternative tests.
Length: 45 pages
Creation-Date: 2020-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-04.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-04
Classification-JEL: G32, M41, M48
Keywords: IFRS, bank debt, non-listed entities

Handle: RePEc:ies:wpaper:F202004


Template-Type: ReDIF-Paper 1.0
Author-Name: Jérémie BERTRAND
Author-X-Name-First: Jérémie
Author-X-Name-Last: BERTRAND
Author-Workplace-Name: IESEG School of Management 
Author-Email: j.bertrand@ieseg.fr
Author-Name: Aurore BURIETZ
Author-X-Name-First: Aurore
Author-X-Name-Last: BURIETZ
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: a.burietz@ieseg.fr
Author-Name: Laurent WEILL
Author-X-Name-First: Laurent
Author-X-Name-Last: WEILL
Author-Workplace-Name: EM Strasbourg Business School, University of Strasbourg
Author-Email: laurent.weill@unistra.fr

Title: The Month-of-the-Year Effect in Corporate Lending
Abstract: We investigate the existence of calendar effect in corporate lending decisions. We show
that the loan amount granted by banks significantly varies across months. We find a
positive effect of quarter-end and year-end months on the loan amount. We attribute these
effects to trade loading behavior, according to which banks would inflate granted loans at
the end of the quarter and the year to hit financial targets
Length: 10 pages
Creation-Date: 2020-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-05.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-05
Classification-JEL: G21.
Keywords: calendar effect, corporate loans, trade loading.

Handle: RePEc:ies:wpaper:F202005


Template-Type: ReDIF-Paper 1.0
Author-Name: Muhammad Farooq AHMAD
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: AHMAD
Author-Workplace-Name: SKEMA Business School - University Cote d'Azur 
Author-Email: farooq.ahmad@skema.edu
Author-Name: Oskar KOWALEWSKI
Author-X-Name-First: Oskar
Author-X-Name-Last: KOWALEWSKI
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: o.kowalewski@ieseg.fr


Title: Collective bargaining power and corporate cash policy
Abstract: This paper provides novel evidence on the role of labor unions in firms’ corporate cash policy.
Examining the unionization rates of firms across 29 countries for the period 2004–2015, we
show that firms respond to an increase in unionization rate by decreasing their corporate cash
holdings. The reported effect is symmetric, in that firms respond to increases (decreases) in
unionization rate by decreasing (increasing) their cash buffers. These results are consistent
with the bargaining hypothesis, namely, that firms strategically decrease their cash level to
counter the rise in employees’ bargaining power due to increased unionization. These findings
are robust to different unionization variable constructions, alternative dependent variable
definitions, controlling for potentially correlated time-variant firm characteristics, saturation
of a dense set of fixed effects, and endogeneity concerns. Additionally, the negative effect of
unionization on cash holdings is more pronounced in labor-intensive, large, high-growth, highprofitability, and low labor productive firms. The countries’ quality of institutions intensifies
the documented relationship.
Length: 31 pages
Creation-Date: 2020-06
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-06_2.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-06
Classification-JEL: G01, G21, G28, J50, G32
Keywords: Corporate finance, Labor Unions, Cash, Institutions

Handle: RePEc:ies:wpaper:F202006

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar KOWALEWSKI
Author-X-Name-First: Oskar
Author-X-Name-Last: KOWALEWSKI
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Paweł PISANY
Author-X-Name-First: Paweł 
Author-X-Name-Last: PISANY
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences
Author-Email: ppisany@inepan.pl

Title: The Rise of Fintech: A Cross-Country Perspective
Abstract: This study investigates the determinants of fintech company creation and activity using a
cross-country sample that includes developed and developing countries. Using a random
effect negative binomial model and explainable machine learning algorithms, we show
the positive role of technology advancements in each economy, quality of research, and
more importantly, the level of university-industry collaboration. Additionally, we find
that demographic factors may play a role in fintech creation and activity. Some fintech
companies may find the quality and stringency of regulation to be an obstacle. Our results
also show the sophisticated interactions between the banking sector and fintech
companies that we may describe as a mix of cooperation and competition.
Length: 44 pages
Creation-Date: 2020-07
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/06/2020-ACF-07.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-07
Classification-JEL: G21, G23, L26, O30
Keywords: fintech, innovation, start up, developed countries, developing countries

Handle: RePEc:ies:wpaper:F202007

Template-Type: ReDIF-Paper 1.0
Author-Name: Marcin BORSUK
Author-X-Name-First: Marcin
Author-X-Name-Last: BORSUK
Author-Workplace-Name: European Central Bank, Frankfurt, Germany
Author-Email: Marcin_Dominik.Borsuk@ecb.europa.eu
Author-Name: Oskar KOWALEWSKI
Author-X-Name-First: Oskar
Author-X-Name-Last: KOWALEWSKI
Author-Workplace-Name: IESEG School of Management & LEM-CNRS 9221
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Jianping QI
Author-X-Name-First: Jianping
Author-X-Name-Last: QI
Author-Workplace-Name: Muma College of Business, University of South Florida, Tampa, USA
Author-Email: jqi@usf.edu

Title: The Dark Side of the Bank Levy
Abstract: We examine the consequences of imposing a high tax levy on bank assets. Employing
unique supervisory bank-level data, we exploit different channels through which the new
tax may impair the stability of the banking sector. We find that following the introduction
of the levy, banks increase the cost of loans and decrease their overall availability to the
real economy. We also document that changes in banks’ loan portfolios are strongly
related to bank-specific profitability and capital adequacy ratios. Furthermore, our
evidence supports the view that banks engage in risk shifting by increasing the risk level
of their loan portfolios, attempting to recover from the lower return on equity as the tax
reduces their overall profits.
Length: 58 pages
Creation-Date: 2020-08
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/10/2020-ACF-08.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-08
Classification-JEL: G21, H22, L13
Keywords: 

Handle: RePEc:ies:wpaper:F202008

Template-Type: ReDIF-Paper 1.0
Author-Name: Jérémie BERTRAND
Author-X-Name-First: Jérémie
Author-X-Name-Last: BERTRAND
Author-Workplace-Name: IESEG School of Management, Finance Department
3, rue de la digue, 59000 Lille - France
Author-Email: j.bertrand@ieseg.fr
Author-Name: Pierluigi MURRO
Author-X-Name-First: Pierluigi
Author-X-Name-Last: MURRO
Author-Workplace-Name: LUISS University, Department of Business and Managemen, Viale Romania, 32
00197 Rome – Italy
Author-Email: pmurro@luiss.it

Title: Firm-bank “Odd Couples” and trade credit: Evidence from Italian SMEs
Abstract: We analyze the use of trade credit as a substitute for relationship lending credit when firms cannot otherwise obtain such credit. Using a sample of SMEs from the Survey of Italian Manufacturing Firms, we show that when opaque firms seeking relationship credit encounter transactional banks, they use a greater portion of trade credit. This findings suggest that opaque firms substitute their missing relationship credit with trade credit, because trade creditors are more able to evaluate soft information. The results depend on firm characteristics, the nature of the bank, and the size of the
firms’ banking pool.

Length: 37 pages
Creation-Date: 2020-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/10/2020-ACF-09.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-09
Classification-JEL: G21, L14, L22
Keywords: Banks, Lending Technologies, Small Business, Trade Credit

Handle: RePEc:ies:wpaper:F202009

Template-Type: ReDIF-Paper 1.0
Author-Name: Muhammad Farooq AHMAD
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: AHMAD
Author-Workplace-Name: SKEMA Business School – Université Côte d’Azur, Lille, France
Author-Email: farooq.ahmad@skema.edu
Author-Name: Oskar KOWALEWSKI
Author-X-Name-First: Oskar
Author-X-Name-Last: KOWALEWSKI
Author-Workplace-Name: IESEG School of Management, Paris, France; LEM-CNRS 9221, Lille, France; Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Pawel PISANY
Author-X-Name-First: Pawel
Author-X-Name-Last: PISANY
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Author-Email: ppisany@inepan.pl 
Title: What determines Initial Coin Offering success: A cross-country study
Abstract: We investigate the determinants of ICO campaigns' presence and success using data on 503  initial  coin  offerings  (ICOs)  from  60  countries  that  took  place  between  2015  and 2018. We took individual project perspective and country-wide perspective into account. Our findings show that expert ratings, insider retention, and resource-related signals, such as  the  number  of  team  members  and  advisors,  contribute  positively  to  ICO  funding success  and  post-ICO  activity.  Conversely,  organizing  presale  and  bonuses  contribute negatively.  Moreover,  we  established  that  countries'  financial  system  development  and ICO-related legal certainty boost the crypto-market. More importantly, we also document that countries' cultures foster ICO market development. 
Length: 32 pages
Creation-Date: 2020-11
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2020/11/2020-ACF-10.pdf
File-Format: Application/pdf
File-Function: 
Number: 2020-ACF-10
Classification-JEL: G10, L26, M13, O30 
Keywords: Initial Coin Offering, corporate finance, innovation, entrepreneurship 
Handle: RePEc:ies:wpaper:F202010

Template-Type: ReDIF-Paper 1.0
Author-Name: Krzysztof Jackowicz 
Author-X-Name-First: Krzysztof
Author-X-Name-Last: Jackowicz 
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland 
Author-Email: kjtrist@kozminski.edu.pl
Author-Name: Oskar Kowalewski 
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management and LEM-CNRS 9221, France
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Lukasz Kozlowski
Author-X-Name-First: Lukasz 
Author-X-Name-Last: Kozlowski
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland
Author-Email: lkozlowski@kozminski.edu.pl
Title: Foreign bank lending: The role of home country culture during prosperous and crisis periods
Abstract: We investigated whether home country culture determines the lending behavior of foreign subsidiaries in host countries during both tranquil and difficult economic times. We employed a dataset of foreign-owned banks originating from 49 home countries and operating in 47 host countries during the period 1996–2018. We found that, in general, only certain dimensions of the home country culture of multinational banks influence lending activities of the foreign bank subsidiaries. However, the impact of home country culture strengthens significantly during crises. Interestingly, we established that the  cultural values of the home country are more important than the cultural distances between home and host countries in explaining foreign bank lending attitudes. 
Length: 47
Creation-Date: 2021-04
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/04/2021-ACF-01.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-01
Classification-JEL: G01, G21
Keywords: foreign bank, lending, national culture, crisis
Handle: RePEc:ies:wpaper:F202101

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, Paris, France, LEM-CNRS 9221, Lille, France, Institute of Economics, Polish Academy of Sciences, Warsaw, Poland  
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Pawel Pisany
Author-X-Name-First: Pawel
Author-X-Name-Last: Pisany
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland 
Author-Email: ppisany@inepan.pl 
Author-Name: Emil Slazak
Author-X-Name-First: Emil
Author-X-Name-Last: Slazak
Author-Workplace-Name: Warsaw School of Economics, Warsaw, Poland 
Author-Email: eslaza@sgh.waw.pl 
Title: What determines cross-country differences in fintech and bigtech credit markets?
Abstract: This study is an investigation of the determinants of the development of technology-driven alternative credit markets, that is, fintech and bigtech credit. Using a data sample from 94 countries from 2013–2019, we confirmed the relevance of the availability of credit data, both the traditional and alternative types, with the latter being known as the so-called “digital footprint.” Furthermore, we have provided evidence to confirm the positive role of strengthening Internet privacy protections in fostering the development of the fintech credit market, which may not necessarily be the case for the bigtech credit market. We have also shown that the growth of the fintech and bigtech credit market is preceded by a rising paytech services market. Furthermore, we have found that the development of fintech credit services is fostered by the strength of both principal institutions, like the rule of law, and credit-specific institutions, especially in terms of insolvency framework effectiveness, while, for the bigtech credit market, only the latter matters. Interestingly, we have also found that various national cultural profiles can boost the development of fintech and bigtech credit services. Lastly, we have shown that the fintech credit market develops faster in countries characterized by high levels of societal distrust toward banks and that the opposite seems to be the case with the bigtech credit market. 
Length: 42
Creation-Date: 2021-04
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/04/2021-ACF-02.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-02
Classification-JEL: G21, G23, L26, O30
Keywords: alternative credit, fintech, bigtech, innovation, culture, trust, data access 
Handle: RePEc:ies:wpaper:F202102

Template-Type: ReDIF-Paper 1.0
Author-Name: Muhammad Farooq Ahmad
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: Ahmad
Author-Workplace-Name: SKEMA Business School – University Cote d’Azur, Avenue Willy Brandt - 59777, Lille, France
Author-Email: farooq.ahmad@skema.edu
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, LEM-CNRS 9221
Author-Email: o.kowalewski@ieseg.fr
Title: Board Reforms and Innovation
Abstract: We study the effect of board reforms on firms’ research and development (R&D) investments utilizing a sample of 40 countries. Using a difference-in-differences analysis, we find that firmsinvest more in R&D following corporate governance reforms. Of these, two reforms–havingan independent audit committee and board independence–have a greater impact on R&Dinvestment. Additionally, we show that reforms have the largest impact on R&D investmentin hi-tech industries and the health sector.
Length: 29
Creation-Date: 2021-05
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/05/2021-ACF-03.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-03
Classification-JEL: G3, O30, O32
Keywords: Corporate Governance, Board Reforms, Innovation, Research and Development
Handle: RePEc:ies:wpaper:F202103

Template-Type: ReDIF-Paper 1.0
Author-Name: Azizjon Alimov
Author-X-Name-First: Azizjon
Author-X-Name-Last: Alimov
Author-Workplace-Name: IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France
Author-Email: a.alimov@ieseg.fr  
Title: The Impact of Government Borrowing on Corporate Acquisitions: International Evidence
Abstract: This paper examines how variation in the supply of government debt affects corporate acquisition activity. Using data from 50 countries from 1991 to 2017, the paper finds that government debt issuance is strongly negatively associated with acquisition activity at the firm and aggregate levels. In response to increases in government borrowing, firms appear to make more value-enhancing deals. These effects are stronger for cash-financed deals and for financially stronger firms. Collectively, these findings suggest that rising government debt leads to “real crowding out” by affecting the firms’ ability to make large investments.
Length: 47 
Creation-Date: 2021-08
Revision-Date: 2023-03
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/08/2021-ACF-04.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-04
Classification-JEL: G34, H63
Keywords: government debt, mergers and acquisitions
Handle: RePEc:ies:wpaper:F202104

Template-Type: ReDIF-Paper 1.0
Author-Name: Azizjon Alimov
Author-X-Name-First: Azizjon
Author-X-Name-Last: Alimov
Author-Workplace-Name: IESEG School of Management, LEM-CNRS UMR 9221 
Author-Email: a.alimov@ieseg.fr  
Title: Does product market competition discipline managers? Evidence from exogenous trade shock and corporate acquisitions 
Abstract: This paper uses the 1989 Canada-U.S. Free Trade Agreement (FTA) to study the effect of increased foreign competition on the efficiency of corporate acquisition decisions. Following the FTA, U.S. acquirers exposed to greater increases in competitive pressure experience higher announcement 
returns. The positive impact of increased competition is stronger in acquirers with relatively higher agency costs prior to the FTA. Managers of acquirers exposed to greater foreign competition are more likely to be terminated following value-destroying acquisitions. Overall, these results are consistent with an active role for product market competition in disciplining managers with respect to important investment decisions. These results have broader implications: a rise in foreign competition can potentially improve the efficiency of key managerial decisions. 
Length: 49
Creation-Date: 2021-08
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/08/2021-ACF-05.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-05
Classification-JEL: G34, F13, D43
Keywords: Trade Liberalization, Mergers and acquisitions, Competition, Governance. 
Handle: RePEc:ies:wpaper:F202105

Template-Type: ReDIF-Paper 1.0
Author-Name: Yann BRAOUEZEC
Author-X-Name-First: Yann
Author-X-Name-Last: BRAOUEZEC
Author-Workplace-Name: IESEG School of Management, CNRS-LEM, UMR 9221, Paris campus, Socle de la Grande Arche, 1 Parvis de la Défense, 92044 Paris La Défense Cedex 
Author-Email: y.braouezec@ieseg.fr
Author-Name: Keyvan KIANI
Author-X-Name-First: Keyvan
Author-X-Name-Last: KIANI
Author-Workplace-Name: IESEG School of Management, CNRS-LEM, UMR 9221, Paris campus, Socle de la Grande Arche, 1 Parvis de la Défense, 92044 Paris La Défense Cedex
Author-Email: k.kiani@ieseg.fr
Title: Economic foundations of generalized games with shared constraint: Do binding agreements lead to less Nash equilibria?
Abstract: A generalized game is a situation in which interaction between agents occurs not only through their objective function but also through their strategy sets; the strategy set of each agent depends upon the decision of the other agents and is called the individual constraint. As opposed to generalized games with exogenous shared constraint literature pioneered by [Rosen, 1965], we take the individual constraints as the basic premises and derive the shared constraint generated from the individual ones, a set K. For a prole of strategies to be a Nash equilibrium of the game with individual constraints, it must lie in K. But if, given what the others do, each agent agrees to restrict her choice in K, something that we call an endogenous shared constraint, this mutual restraint may generate new Nash equilibria. It is the main result of this paper to show that the set of Nash equilibria in endogenous shared constraint contains the set of Nash equilibria in individual constraints. In particular, when there is no Nash equilibrium in individual constraints, there may still exist a Nash equilibrium in endogenous shared constraint and we give two economic applications of this to collective action problems (carb on emission and public good problems).
Length: 30
Creation-Date: 2021-09
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/09/2021-ACF-06.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-06
Classification-JEL: 
Keywords: Generalized games, binding agreements, individual and shared constraints, collective action problems
Handle: RePEc:ies:wpaper:F202106


Template-Type: ReDIF-Paper 1.0
Author-Name: Kowalewski
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, Lille, France Univ. Lille, UMR 9221 - LEM - Lille Economie Management, Lille, France CNRS, UMR 9221 - LEM - Lille Economie Management, Lille, France Institute of Economics, Polish Academy of Sciences, Warsaw, Poland 
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Pawel Pisany
Author-X-Name-First: Pawel
Author-X-Name-Last: Pisany
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Author-Email: ppisany@inepan.pl
Title: Banks’ consumer lending reaction to fintech and bigtech credit emergence in the context of soft versus hard credit information processing
Abstract: We analyze competition in the consumer lending segment between banks and financial technology (or “fintech”) companies (or “fintechs”) as well as giant technology (or “bigtech”) companies (or “bigtechs”) providing alternative credit. We use a database combining bank-level characteristics and country-level proxies for 72 countries during 2013–2018. We find that in developed  markets, the relations between fintech/bigtech credit providers and banks are similar and competitive in nature. However, banks’ consumer lending grows simultaneously with fintech credit market development in emerging economies but decreases in the aftermath of bigtech credit emergence. Fintech credit seems to penetrate market segments not serviced by banks; thus, it plays a complementary role, but only in emerging economies. Bigtechs compete even more with banks and push some banking offers out of the market, both in emerging and developed economies. Furthermore, we show that domestic and privately owned banks are more negatively affected by competition from technology-based lending, particularly bigtech, compared to foreign banks. Thus, bigtech lending may be treated as a serious competition for banks’ relationship lending, based on soft credit information processing, provisioned traditionally by local banks.
Length: 36
Creation-Date: 2021-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/10/2021-ACF-07.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-07
Classification-JEL: G21, G23, O33
Keywords: alternative credit, fintech, bigtech, financial inclusion, local banks, competition, relationship lending, soft credit information
Handle: RePEc:ies:wpaper:F202107



Template-Type: ReDIF-Paper 1.0
Author-Name: Kowalewski
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, Lille, France Univ. Lille, UMR 9221 - LEM - Lille Economie Management, Lille, France CNRS, UMR 9221 - LEM - Lille Economie Management, Lille, France Institute of Economics, Polish Academy of Sciences, Warsaw, Poland 
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Pawel Pisany
Author-X-Name-First: Pawel
Author-X-Name-Last: Pisany
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Author-Email: ppisany@inepan.pl
Title: Home–host distance in governance quality, foreign banks’
lending, and emerging host markets’ resilience
Abstract: In this study, we investigate how governance quality determines the lending behavior
of foreign-owned banks in emerging host markets. We do this by employing a dataset that
includes foreign banks from 45 developed markets operating in 58 emerging markets. We
incorporate direct measures of governance quality as well as home–host country distance
in governance quality. Additionally, we investigate foreign banks’ lending behavior during the
2008-2009 financial crisis (GFC). We document that more micro-oriented governance
dimensions, such as business regulatory quality and corruption control, play a role for foreign
banks. Furthermore, we show that home–host distance in governance quality shapes lending
behaviors to a greater extent than the quality in host markets itself. We also show that
governance quality proximity between home and host markets fostered emerging economies’
resilience during the GFC to a greater extent than quality as a standalone. 
Length: 29
Creation-Date: 2021-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/10/2021-ACF-08.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-08
Classification-JEL: G01, G21, gé_
Keywords: : foreign banks, lending, emerging markets, governance quality, crisis 
Handle: RePEc:ies:wpaper:F202108



Template-Type: ReDIF-Paper 1.0
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar 
Author-X-Name-Last: Hasan
Author-Workplace-Name: Fordham University, United States; Bank of Finland, Finland; and University of Sydney, Australia  
Author-Email: ihasan@fordham.edu 
Author-Name: Krzysztof Jackowicz
Author-X-Name-First: Krzysztof 
Author-X-Name-Last: Jackowicz
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland 
Author-Email: krzysztof.j.jackowicz@gmail.com
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, Lille, France Univ. Lille, UMR 9221 - LEM - Lille Economie Management, Lille, France CNRS, UMR 9221 - LEM - Lille Economie Management, Lille, France Institute of Economics, Polish Academy of Sciences, Warsaw, Poland 
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Łukasz Kozłowski
Author-X-Name-First: Łukasz
Author-X-Name-Last: Kozłowski
Author-Workplace-Name: Department of Banking, Insurance and Risk, Kozminski University, Poland
Author-Email: lukaszkoz@gmail.com
Title: Cultural values of parent bank board members and lending by
foreign subsidiaries: The moderating role of personal traits
Abstract: In this study, we investigate how the average cultural values of parent bank board members
affect lending by foreign subsidiaries and how this influence is moderated by board members’
personal traits. Using a new dataset that includes information on foreign banks and their parent
companies from 66 and 29 countries, respectively, we find that loan growth of foreign
subsidiaries is faster when parent boards exhibit, on average, higher uncertainty avoidance and
power distance but lower individualism and indulgence. Notably, the identified regularities are
significantly moderated by gender, busyness, and firm ownership of parent bank board
members. 
Length: 43
Creation-Date: 2021-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/10/2021-ACF-09.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-09
Classification-JEL: G01, G21
Keywords: : foreign banks, lending, national culture, directors, board members, bank managers 
Handle: RePEc:ies:wpaper:F202109


Template-Type: ReDIF-Paper 1.0
Author-Name: Marcin Borsuk
Author-X-Name-First: Marcin
Author-X-Name-Last: Borsuk
Author-Workplace-Name: European Central Bank, Germany
Institute of Economics, Polish Academy of Sciences, Poland
School of Economics, University of Cape Town, South Africa
Author-Email: mborsuk@inepan.waw.pl
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Poland
IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie
Management, F-59000 Lille, France
Univ. Lille, UMR 9221 - LEM - Lille Economie Management, France
CNRS, UMR 9221 - LEM - Lille ´Economie Management, France
Author-Email: o.kowalewski@ieseg.fr 
Author-Name: Pawel Pisany
Author-X-Name-First: Pawel 
Author-X-Name-Last: Pisany
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Poland 
Author-Email: ppisany@inepan.pl
Title: State-owned banks and international shock transmission
Abstract: In this study, we employ a new dataset on bank ownership and reassess the links between domestic and foreign ownership and lending during the 1996– 2018 period. Additionally, we distinguish between privately-owned and state-controlled banks and €nd that the lending activities
of foreign state-controlled and privately-owned banks di‚er, particularly following the €nancial
crisis of 2008. Our analysis con€rms that foreign state-controlled and privately-owned banks
provided credit during domestic banking crises in host countries, whereas lending by domestic
state-controlled banks contracted. Further, foreign state-controlled banks reduced their credit
base during a home banking crisis, whereas foreign privately-owned banks expanded lending.
Hence, we €nd that the credit supply of foreign state-controlled and privately-owned banks differs in host countries because of exogenous shocks. We also €nd weak evidence that foreign state
control can be a transmission channel during a sovereign crisis in the home country. However,
we €nd no evidence that foreign banks, state-controlled or privately-owned, transmit a currency
crisis to a host country. Overall, our results suggest a mixed banking sector comprising foreign
and domestic state-controlled banks and privately-owned banks to contribute to €nancial stability
during domestic and international crises.
Length: 42
Creation-Date: 2021-10
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2021/12/2021-ACF-10.pdf
File-Format: Application/pdf
File-Function: 
Number: 2021-ACF-10
Classification-JEL: G01, G21, G28
Keywords: : foreign banks, state-controlled banks, private banks, credit growth, crisis
Handle: RePEc:ies:wpaper:F202110

Template-Type: ReDIF-Paper 1.0
Author-Name: Jérémie BERTRAND
Author-X-Name-First: Jérémie
Author-X-Name-Last: BERTRAND
Author-Workplace-Name: IESEG School of Management - LEM-CNRS 9221
Author-Email: j.bertrand@ieseg.fr
Author-Name: Caroline PERRIN
Author-X-Name-First: Caroline
Author-X-Name-Last: PERRIN
Author-Workplace-Name: University of Strasbourg
Author-Email: caroline.perrin@em-strasbourg.eu
Title: Girls Just Wanna Have Funds? The Effect of Women-Friendly Legislation
on Women-Led Firms’ Access to Credit
Abstract: Does a women-friendly legal environment really help women overcome discrimination in credit
markets? By examining antidiscrimination laws and their implications for women-led businesses' access
to credit in 124 countries, the current study differentiates an effect on discouragement (i.e., not asking
for credit when they need it, demand-side) and an effect on the probability that they obtain credit
(supply-side). Legal protections are associated with lower women-led firms’ discouragement, but they
do not attain more credit. This effect is notable with regard to emotional discouragement and prevails
among smaller firms; the supply-side effect also vanishes in Muslim-majority countries. Finally,
enforcement efforts dramatically amplify the effect of women-friendly laws on self-restrictions in terms
of credit and enable women to access more credit. These results are robust to several tests.
Length: 43
Creation-Date: 2022-01
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2022/01/2022-ACF-01.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-01
Classification-JEL: G21, J71, K38
Keywords: banking, gender, access to credit, borrower discouragement
Handle: RePEc:ies:wpaper:F202201


Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar 
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Poland
IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, France ´
Univ. Lille, UMR 9221 - LEM - Lille Economie Management, France ´
CNRS, UMR 9221 - LEM - Lille Economie Management, France
Author-Email: o.kowalewski@ieseg.fr 
Title: E‚ect of operating multiple aliates on the performance of
subsidiaries in the same host country
Abstract: Li‹le has been reported on the e‚ect of aliates on their foreign subsidiary performance. In the
context of multinational banks (MNBs), we empirically investigate how the establishment of multiple aliate forms a‚ects the performance of their subsidiaries in the same host country. We also
examine the factors inƒuencing and e‚ective entry mode choices. Based on the transaction cost
theory, we hypothesize that MNBs can bene€t foreign subsidiaries using entry modes based on
cost minimization and value maximization. For the period 2005–2015, we test this hypothesis on a
sample of 897 subsidiaries established by 98 MNBs across 147 countries. ‘e results show that the
simultaneous operation of multiple aliate forms positively inƒuences their foreign subsidiary’s
performance. ‘e transaction costs determine MNBs’ entry choices. MNBs can enhance their
subsidiary’s performance using entry modes considering institutional and cultural contexts and
achieving cost and value targets in the host country. ‘is study has policy implications in that
it calls for collaboration between host and home countries to develop e‚ective supervision and
resolution regimes for MNBs operating multiple aliate forms in host countries.
Length: 39
Creation-Date: 2022-01
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2022/01/2022-ACF-02.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-02
Classification-JEL: G01, G21, G28
Keywords: : multinational banks, transaction cost theory, entry mode choice, cultural and
institutional proximity
Handle: RePEc:ies:wpaper:F202201

Template-Type: ReDIF-Paper 1.0
Author-Name: Karishma Ansaram
Author-X-Name-First: Karishma
Author-X-Name-Last: Ansaram
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie
Management, F-59000 Lille, France, 3 rue de la Digue - 59000 Lille (France)
Author-Email: k.ansaram@ieseg.fr 
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie
Management, F-59000 Lille, France, 3 rue de la Digue - 59000 Lille (France)
Author-Email: p.mazza@ieseg.fr 
Title: Dependence structure among carbon markets around the
world: New evidence from GARCH-copula analysis
Abstract: This paper investigates the dependence structure among carbon markets around the
world through the application of different copulas. The analysis provides important insights
into the relationship between carbon prices being traded across different exchanges across
the world. The novelty of this study rests into assessing carbon allowances for both futures
and spot prices across all the key carbon markets, such as the EU, RGGI, California,
Quebec, South Korea, as well as the three oldest Chinese pilot carbon markets, Shenzhen,
Guangdong and Hubei for the period 2011 to 2019 for future prices and 2015 to 2020 for spot
prices. The results demonstrate an asymmetric relationship between most carbon markets.
A low tail dependence has been noted between the EU and western carbon markets, while
higher tail dependence has been registered with the eastern carbon markets. Further,
carbon markets that have linkage agreement, ongoing cooperation or are geographically
close tend to have positive and higher tail dependence. The paper points out to regional
carbon clubs being formed as per the dependence structure.
Length: 42
Creation-Date: 2022-02
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2022/02/2022-ACF-03.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-03
Classification-JEL: D40, P18, Q50, C58 
Keywords: :  carbon markets , carbon pricing, copula models, dependence structure
Handle: RePEc:ies:wpaper:F202202


Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie
Management, F-59000 Lille, France
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Muhammad Farooq Ahmad
Author-X-Name-First: Muhammad
Author-X-Name-Last: Farooq Ahmad
Author-Workplace-Name: SKEMA Business School – Université Côte d'Azur, Avenue Willy Brandt, Euralille, Lille, 59777 France
Author-Email: farooq.ahmad@skema.edu
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Author-Workplace-Name: Rennes School of Business, 2 Rue Robert d'Arbrissel Cedex, Rennes, 35065 France
Author-Email: saqib.aziz@rennes-sb.com
Author-Name: Rwan El-Khatib
Author-X-Name-First: Rwan
Author-X-Name-Last: El-Khatib
Author-Workplace-Name: College of Business, Zayed University, United Arab Emirates
Author-Email: rwan.elkhatib@zu.ac.ae
Title: Firm-Level Political Risk and Dividend Payout
Abstract: We use a novel measure of firm-level political risk based on a textual search technique on firms’
quarterly earnings conference transcripts to explain dividend payouts in publicly listed U.S. firms.
We find a positive and significant effect of firm-level political risk on dividend payouts,
particularly in uncertainties related to economics, institutions, technology, trade, and security. The
effect is more pronounced in firms with better corporate governance, less analyst follow-up, and
higher growth opportunities. These results support the signaling role of dividends rather than the
role of agency theory in explaining dividend payouts when firms are associated with higher levels
of political risk. We also find the effect to be prominent after controlling for an aggregate measure
of economic policy uncertainty and in poor and recessionary economic conditions. We address
endogeneity concerns and selection bias by running placebo tests and performing propensity score
matching technique.
Length: 38
Creation-Date: 2022-08
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2022/08/2022-ACF-04.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-04
Classification-JEL: G30, G35, G38
Keywords: :  Dividends; Firm-Level Political Risk; Agency Theory; Signaling Theory; Economic
Policy Uncertainty
Handle: RePEc:ies:wpaper:F202208

Template-Type: ReDIF-Paper 1.0
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
IESEG School of Management, UMR 9221 - LEM - Lille Économie Management, Lille, France
Univ. Lille, UMR 9221 - LEM - Lille Économie Management, Lille, France
CNRS, UMR 9221 - LEM - Lille Économie Management, Lille, France
Author-Email: o.kowalewski@ieseg.fr
Author-Name: Nicolas Eugster
Author-X-Name-First: Nicolas
Author-X-Name-Last: Eugster
Author-Workplace-Name: The University of Queensland, Brisbane, Australia
Author-Email: n.eugster@business.uq.edu.au
Author-Name: Piotr Spiewanowski
Author-X-Name-First: Piotr
Author-X-Name-Last: Spiewanowski
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland
Author-Email: p.spiewanowski@inepan.waw.pl
Title: This study aims to provide new evidence linking internal corporate governance mechanisms and
corporate misconduct, using a sample of 2,844 public US companies during the period 2007-2019.
The results reveal that optimal size and diverse boards, including well-functioning audit com-
mittees, are negatively related to corporate violations. In contrast, we show that board mem-
bers’ independence, activity, and ownership are positively related to a rm’s fraudulent activities.
Therefore, not all internal governance mechanisms are related to lower corporate misconduct.
Moreover, we show that some internal governance mechanisms, such as the share of female board
members, mitigate only certain types of corporate misconduct. The results show that attempts
to regulate corporate governance mechanisms should be considered with caution as they do not
always provide the expected outcome.
Length: 46
Creation-Date: 2022-08
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2022/08/2022-ACF-05.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-05
Classification-JEL: G01; G34; G38; K22; L51; M41
Keywords: :  corporate misconduct; internal governance mechanisms; board of directors;
committees; ownership;
Handle: RePEc:ies:wpaper:F202208

Template-Type: ReDIF-Paper 1.0
Author-Name: Renaud Beaupain
Author-X-Name-First: Renaud
Author-X-Name-Last: Beaupain
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie
Management, F-59000 Lille, France
Author-Email: r.beaupain@ieseg.fr.
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie
Management, F-59000 Lille, France
Author-Email: y.braouezec@ieseg.fr.
Title: International banking regulation and Tier 1 capital
ratios. On the robustness of the critical average risk
weight framework
Abstract: Under Basel III, the new international banking regulation, banks must maintain
two Tier 1 capital ratios that treat risky assets dierently. The Basel Committee
uses the critical average risk weight (CARW) framework, developed by the Bank of
England to determine which ratio is the binding constraint. This methodology, which
implicitly assumes that each asset is subject to a uniform shock, consists in comparing
the implied average risk weight of a bank to a regulatory critical threshold. Using
a stress test approach, we examine whether, and under which conditions, the CARW
framework identies the correct binding capital ratio. We nd important errors, that are
attributable to incorrect data but surprisingly not to the CARW framework. We nally
generalize the methodology used by the Basel Committee and show how our stress-test
approach can be used to determine which ratio is binding when only a (single class of)
asset(s) is shocked.
Length: 56
Creation-Date: 2022-11
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2023/01/2022-ACF-06.pdf
File-Format: Application/pdf
File-Function: 
Number: 2022-ACF-06
Classification-JEL:
Keywords: : International banking regulation, Leverage ratio, Risk-based capital ratio,
Critical average risk weight framework, Stress-test framework
Handle: RePEc:ies:wpaper:F202211

Template-Type: ReDIF-Paper 1.0
Author-Name: Marcin Borsuk
Author-X-Name-First: Marcin
Author-X-Name-Last: Borsuk
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Poland; University of Cape Town, South Africa
Author-Email: mborsuk@inepan.waw.pl
Author-Name: Nicolas Eugster
Author-X-Name-First: Nicolas
Author-X-Name-Last: Eugster
Author-Workplace-Name: University of Queensland, Australia
Author-Email: n.eugster@business.uq.edu.au
Author-Name: Paul-Olivier Klein
Author-X-Name-First: Paul-Olivier
Author-X-Name-Last: Klein
Author-Workplace-Name: University of Lyon, France: Université Jean Moulin Lyon 3, iaelyon School of Management, UR Magellan. 1 av. des Frères Lumière, 69008 Lyon, France. Orcid: orcid.org/0000-0003-2403-5980
Author-Email: paul-olivier.klein@univ-lyon3.fr
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: Institute of Economics, Polish Academy of Sciences, Poland
IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie, F-59000 Lille, France
Author-Email: o.kowalewski@ieseg.fr
Title: Family Ownership and Carbon Emissions
Abstract: This study examines the relationship between family ownership and carbon emissions using a large cross-country dataset comprising 6,610 non-financial companies over the period 2010- 2019. We document that family firms display lower carbon emissions, both direct and indirect, when compared to non-family firms, suggesting a higher commitment to environmental protection by family owners. We show that this differential effect started following the 2015 Paris Agreement. Differences in governance structure, familial values, and higher spendings in R&D partly explain our results. Paradoxically, we find that family-owned firms and family CEOs commit less publicly to a reduction in their carbon emissions and have lower ESG scores, although polluting less. This suggests a lower participation in the public display of such an outcome and a lower tendency to greenwashing.
Length: 62
Creation-Date: 2023-03
Revision-Date: 
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2023/04/2023-ACF-01.pdf 
File-Format: Application/pdf
File-Function: 
Number: 2023-ACF-01
Classification-JEL: G3; G38; M14
Keywords: : carbon emission, ESG, governance, family firms, greenwashing, climate change
Handle: RePEc:ies:wpaper:F202301

Template-Type: ReDIF-Paper 1.0
Author-Name: Raul Barroso
Author-X-Name-First: Raul
Author-X-Name-Last: Barroso
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France
Author-Email: r.barrosocasado@ieseg.fr
Author-Name: Tinghua Duan
Author-X-Name-First: Tinghua
Author-X-Name-Last: Duan
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France
Author-Email: t.duan@ieseg.fr
Author-Name: Siyue (Sarina) Guo
Author-X-Name-First: Siyue (Sarina)
Author-X-Name-Last: Guo
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France
Author-Email: s.guo@ieseg.fr
Author-Name: Oskar Kowalewski
Author-X-Name-First: Oskar
Author-X-Name-Last: Kowalewski
Author-Workplace-Name: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France
Author-Email: o.kowalewski@ieseg.fr
Title: Board Gender Diversity Reform and Corporate Carbon Emissions
Abstract: We examine the impact of the increased presence of female board members on
corporate carbon emissions. Using the staggered enactment of gender diversity reforms
in different countries, we find that an increase in the number of female directors after
the reforms leads to a reduction in corporate carbon emissions. This effect is
particularly more pronounced when the reform is legislative, and occurs in collectivistic
countries. Furthermore, the effect of enhanced female board representation on carbon
emission reduction is greater following the Paris Agreement. This study offers valuable
insights for policymakers who consider gender diversity reform as a strategy against
climate change.
Length: 48
Creation-Date: 2023-07
Revision-Date: 2024-04
Publication-Status: 
File-URL: https://www.ieseg.fr/wp-content/uploads/2024/04/2023-ACF-02.pdf
File-Format: Application/pdf
File-Function: 
Number: 2023-ACF-02
Classification-JEL: G34, J16, Q54, K42
Keywords: : Board gender diversity reforms, Carbon emission, Climate change, Law, Culture
Handle: RePEc:ies:wpaper:F202302