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.

Standardization of Network Technologies: Market Processes or the Result of Inter‐Firm Co‐operation?

Abstract: As recent studies on the evolution of a technology indicate, the role of a standard, or dominant design, is highly significant in a number of contemporary industries such as computer, telecommunications and consumer electronics. Following Katz' and Shapiro's pioneering works (1985), our paper rationally evaluates the concepts and results developed over the past ten years in this field. It is grounded on a typology of two types of models: the first is based on users' anticipatory behaviour, and the second, on the collaborative behaviour of existing firms. The article initially discusses the specificity of network technologies, then analyses market standardisation models, and finally, studies the different actors models. Our conclusion builds upon existing works in network technologies. We next propose a research agenda

Contrasting Trends in Firm Volatility

Abstract: Over the past decades, the real and financial volatility of listed firms has increased, while the volatility of private firms has decreased. We first provide panel data evidence that, at the firm level, sales and employment volatility are impacted by changes in the degree of ownership concentration. We then construct a model with private and listed firms where risk-taking is a choice variable at the firm-level. Due to general equilibrium feedback, we find that both an increase in stock market participation and integration in international capital markets generate opposite trends in volatility for private and listed firms.

How Information Systems Enable Digital Transformation: A focus on Business Models and Value Co‐production

Abstract: The digital economy has now a widespread impact on the whole economy and leads companies to transform and adopt new competition rules. Our objectives in this paper are 1) to analyze these evolutions and 2) to understand the role of informations systems in these changes. We have investigated two opposite environments: a pure Internet player selling an SaaS offering, and a traditional business that distributes products through a physical network of thousands of outlets. Our results show that both Internet players and traditional companies experience changes in the industry value chain, a growing importance of services, and develop new business models focused on an extended value proposition and cooperation with customers. The role of information systems is characterized by the evolution of the IT infrastructure, the expansion of inter organizational information systems and digital platforms and the development of new IT capabilities.

Automatic formulation of stochastic programs via an algebraic modeling language

Abstract: This paper presents an open source tool that automatically generates the so-called deterministic equivalent in stochastic programming. The tool is based on the algebraic modeling language ampl. The user is only required to provide the deterministic version of the stochastic problem and the information on the stochastic process, either as scenarios or as a transitions-based event tree.

The Effect of Business and Financial Market Cycles on Credit Ratings: Evidence from the Last Two Decades

Abstract: We analyze the effect of business and financial market cycles on credit ratings using a sample of firms from the Russell 3000 index that are rated by Standard and Poor's over the period 1986–2012. We also examine investor reaction to credit rating actions in different stages of business and financial market cycles. We document that credit rating agencies are influenced by business and financial market cycles; they assign lower credit ratings during downturns of business and financial market cycles and higher ratings during upturns. Our study is the first to find strong evidence of pro-cyclicality in credit ratings using a long window. We also document stronger investor reaction to negative credit rating actions during downturns. Our results confirm theoretical predictions and inform regulators.