HEC Paris

About: HEC Paris is a education organization based out in Jouy-en-Josas, France. It is known for research contribution in the topics: Investment (macroeconomics) & Market liquidity. The organization has 584 authors who have published 2756 publications receiving 104467 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales & HEC School of Management Paris.

Acting professional: An exploration of culturally bounded norms against nonwork role referencing

Abstract: Summary This article presents three studies examining how cross-cultural variation in assumptions about the appropriateness of referencing nonwork roles while in work settings creates consequential impressions that affect professional outcomes. Study 1 reveals a perceived norm limiting the referencing of nonwork roles at work and provides evidence that it is a U.S. norm by showing that awareness of it varies as a function of tenure living in the United States. Studies 2 and 3 examine the implications of the norm for evaluations of job candidates. Study 2 finds that U.S. but not Indian participants negatively evaluate job candidates who endorse nonwork role referencing as a strategy to create rapport and shows that this cultural difference is largest among participants most familiar with norms of professionalism, those with prior recruiting experience. Study 3 finds that corporate job recruiters from the United States negatively evaluate candidates who endorse nonwork role referencing as a means of building rapport with a potential business partner. This research underlines the importance of navigating initial interactions in culturally appropriate ways to facilitate the development of longer-term collaborations and negotiation success. Copyright © 2013 John Wiley & Sons, Ltd.

Consequences of the Abandonment of Mandatory Joint Audit: An Empirical Study of Audit Costs and Audit Quality Effects

Abstract: This paper focuses on the unique Danish setting in examining the consequences of abandoning a mandatory joint audit regime. We study the effects on audit costs (measured by audit fees) and audit quality (measured by abnormal accruals) of the abandonment of the mandatory joint audit in Denmark in 2005. We perform our analysis on non-financial listed Danish companies for the 2002–2010 period. Our results show that a joint audit is associated with higher fees, but that the association between joint audit and abnormal accruals is insignificant. This suggests that the higher audit fees cannot be explained by higher audit quality. Our results are robust to alternative measurements of fees and audit quality. Additional analyses show that the fee premium related to a joint audit decreases over time and that the Big 4 concentration in our sample has increased since the switch from mandatory to voluntary joint audit. Our results are consistent with the motivations driving the regulatory change in Denmark a...

The Price of Wine

Abstract: Using historical price records for Bordeaux Premiers Crus, we examine the impact of aging on wine prices and the long-term investment performance of fine wine. In line with the predictions of an illustrative model, young maturing wines from high-quality vintages provide the highest financial returns. Past maturity, famous châteaus deliver growing non-pecuniary benefits to their owners. Using an arithmetic repeat-sales regression over 1900-2012, we estimate a real financial return to wine investment (net of storage costs) of 4.1%, which exceeds bonds, art, and stamps. Returns to wine and equities are positively correlated. Finally, we find evidence of in-sample return predictability.

Herding in Equity Crowdfunding

Abstract: Do equity crowdfunding investors herd? We build a model where informed and uninformed investors arrive sequentially and choose whether and how much to invest. We test the model using data of investments on a leading European equity crowdfunding platform. We show theoretically and find empirically that the size and likelihood of a pledge is affected positively by the size of the most recent pledges, and negatively by the time elapsed since the most recent pledge. The empirical analysis is inconsistent with naive herding, independent investments, or exogenously correlated investments. Investors rationally herd but social learning about the project's quality stops only when herding induce investors not to invest.