HEC Montréal

About: HEC Montréal is a education organization based out in Montreal, Quebec, Canada. It is known for research contribution in the topics: Vehicle routing problem & Corporate governance. The organization has 1221 authors who have published 5708 publications receiving 196862 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales de Montreal & HEC Montreal.

Is the Distribution of Stock Returns Predictable

Abstract: A large literature has considered predictability of the mean or volatility of stock returns but little is known about whether the distribution of stock returns more generally is predictable. We explore this issue in a quantile regression framework and consider whether a range of economic state variables are helpful in predicting different quantiles of stock returns representing left tails, right tails or shoulders of the return distribution. Many variables are found to have an asymmetric effect on the return distribution, affecting lower, central and upper quantiles very differently. Out-of-sample forecasts suggest that upper quantiles of the return distribution can be predicted by means of economic state variables although the center of the return distribution is more difficult to predict. Economic gains from utilizing information in time-varying quantile forecasts are demonstrated through portfolio selection and option trading experiments.

The Political Determinants of the Cost of Equity: Evidence from Newly Privatized Firms

Abstract: In this paper, we investigate the political determinants of the cost of equity using a unique data set of 236 firms privatized between 1987 and 2006 in 38 countries. We find robust evidence that the cost of equity is increasing in government ownership. We also show that the cost of equity is significantly related to political orientation and the extent of government expropriation. Furthermore, we report a less pronounced effect of state ownership on the cost of equity in more populist governments and in more financially developed countries, in addition to a more pronounced effect of state ownership on the cost of equity when the risk of government expropriation is higher. Results from an event study examining the replacement of left-wing governments by right-wing governments suggest a lower cost of equity in more financially developed countries and a higher cost of equity in more autocratic countries and in countries with a high risk of government expropriation. Finally, we find that chief executive turnover is associated with a higher cost of equity in more autocratic countries.

Relating microprocesses to macro-outcomes in qualitative strategy process and practice research

Abstract: Research Summary: A common challenge among qualitative Strategy Process and Strategy-as-Practice scholars concerns the need to link micro-level processes and practices to organizational-level outcomes in order to make their research more managerially relevant. In this methodological article, we explore and evaluate different ways of addressing this challenge. We draw on a corpus of qualitative process and practice studies to develop and illustrate three micro–macro linking strategies associated with these perspectives: correlation, progression, and instantiation. The strengths and weaknesses of the different linking strategies are discussed, and opportunities for complementarity, combination, and development are proposed. The article reveals the distinctive but complementary contributions of Strategy Process and Strategy-as-Practice strands of scholarship to understanding how microprocesses affect macro-outcomes. Managerial Summary: Managers engage in a variety of strategic management processes and practices in order to develop and implement better strategies, achieve commitment to them from organization members, and ultimately improve organizational outcomes such as financial performance and competitive advantage. Qualitative research on these processes and practices is valuable because it can capture the detail and richness of strategic management as it is practiced in real organizations over time. Yet, it may not always be easy to see how this kind of research can derive useful knowledge about how these processes and practices actually affect outcomes. This article addresses this issue, identifying three methodological approaches (correlation; progression; instantiation) that can help scholars and managers understand these linkages, outlining their strengths and limitations.

On Column Generation Formulations for the RWA Problem

Abstract: We present a review of several column generation formulations for the Routing and Wavelength Assignment (rwa) problem with the objective of minimizing the blocking rate. Several improvements are proposed, together with a comparison of the different formulations with respect to the quality of their continuous relaxation bounds and their computing solution ease. Experimental results are presented on several classical network and traffic instances.