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.

Underwriter Quality and Long-Run IPO Performance

Abstract: We analyze the relationship between the quality of underwriters and the long-run performance of IPOs in the light of underwriter marketing, certification and screening, and information production. We find that higher underwriter quality (measured by the number of managing underwriters, underwriter reputation and absolute price adjustment) predicts better long-run performance, even when returns are value-weighted. We run a horse race between underwriter quality measures and find the effects of the number of managing underwriters and underwriter reputation are mutually complementary and especially strong among IPOs with high uncertainty, while absolute price adjustment – which is more likely to be associated with information production than marketing or certification/screening – loses significance. Our findings are consistent with the marketing, certification and screening roles of investment banks, but lend little support for the information production role of underwriters.

A GRASP + ILP-based metaheuristic for the capacitated location-routing problem

Abstract: In this paper we present a three-phase heuristic for the Capacitated Location-Routing Problem. In the first stage, we apply a GRASP followed by local search procedures to construct a bundle of solutions. In the second stage, an integer-linear program (ILP) is solved taking as input the different routes belonging to the solutions of the bundle, with the objective of constructing a new solution as a combination of these routes. In the third and final stage, the same ILP is iteratively solved by column generation to improve the solutions found during the first two stages. The last two stages are based on a new model, the location-reallocation model, which generalizes the capacitated facility location problem and the reallocation model by simultaneously locating facilities and reallocating customers to routes assigned to these facilities. Extensive computational experiments show that our method is competitive with the other heuristics found in the literature, yielding the tightest average gaps on several sets of instances and being able to improve the best known feasible solutions for some of them.

How Has the Euro Changed the Monetary Transmission

Abstract: This paper characterizes the transmission mechanism of monetary shocks across countries of the euro area, documents how this mechanism has changed with the introduction of the euro, and explores some potential explanations. The factor-augmented VAR (FAVAR) framework used is sufficiently rich to jointly model the euro area dynamics while permitting the transmission of shocks to be different across countries. We find important heterogeneity across countries in the effect of monetary shocks before the launch of the euro. In particular, we find that German interest-rate shocks triggered stronger responses of interest rates and consumption in some countries such as Italy and Spain than in Germany itself. According to our estimates, the creation of the euro has contributed 1) to a greater homogeneity of the transmission mechanism across countries, and 2) to an overall reduction in the effects of monetary shocks. Using a structural open-economy model, we argue that the combination of a change in the policy reaction function -- mainly toward a more aggressive response to inflation and output -- and the elimination of an exchange-rate risk can explain the evolution of the monetary transmission mechanism observed empirically.