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: Market liquidity & Entrepreneurship. 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.

Harmonisation trends in chinese accounting and remaining problems

Abstract: Provides an overview of accounting reform in China since 1993, illustrates the structure of the current (juridicial‐based) accounting system and lists the accounting standards being developed. Contrasts historical Chinese accounting methods with current attempts at international harmonization and identifies some remaining peculiarities, e.g. the dominance of the state, limited application of the prudence principle etc. Criticizes the lack of coherance in accounting regulation and the failure of accounting practice to comply with accounting standards and auditing requirements.

Derivatives Clearing, Default Risk, and Insurance

Abstract: Failure of a clearing house would trigger cascade of damaging disruptions throughout the financial system. Yet little is known about the likelihood of such an event. Using daily data on margins and variation margins for all clearing members of the Chicago Mercantile Exchange, we analyze the clearing house exposure to the risk of default by clearing members. We find that the major source of default risk for a clearing member is proprietary trading rather than trading by customers. Additionally, we show that extreme losses suffered by important clearing firms tend to cluster, which raises systemic risk concerns. To quantify its default risk exposure, we characterize the tail risk of the clearing house using Extreme Value Theory. Finally, we discuss how private insurance could be used to cover the loss from defaults by clearing members.

Consistently Capricious: The Performance Effects of Simultaneous and Sequential Ambidexterity

Abstract: Recent research has identified several mechanisms to overcome the inherent tensions between exploration and exploitation within organizations (Raisch & Birkinshaw, 2008; Lavie, Stettner & Tushman, ...

Accurate and robust tests for indirect inference

Abstract: In this paper we propose accurate parameter and over-identification tests for indirect inference. Under the null hypothesis the new tests are asymptotically χ2-distributed with a relative error of order n−1. They exhibit better finite sample accuracy than classical tests for indirect inference, which have the same asymptotic distribution but an absolute error of order n−1/2. Robust versions of the tests are also provided. We illustrate their accuracy in nonlinear regression, Poisson regression with overdispersion and diffusion models.