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.

Eliciting Prospect Theory When Consequences Are Measured in Time Units: "Time Is Not Money"

Abstract: We elicited the prospect theory components (utility, probability weighting, and loss aversion) when consequences are expressed as the time dedicated to a specific task or activity. A similar elicitation was performed for monetary consequences to allow an across-attribute (time/money) comparison of the elicited components (at the individual level). We obtained less concave utility and smaller loss aversion for time than for money. Moreover, while the probability weighting was predominantly inverse S-shaped for both attributes, it was less sensitive to probabilities and more elevated for time than for money. This finding implies more optimism for gains and more pessimism for losses.

The Effect of IAS/IFRS Adoption on Earnings Management (Smoothing): A Closer Look at Competing Explanations

Abstract: Prior research provides mixed evidence on whether the transition to IAS/IFRS deters or contributes to greater earnings management (earnings smoothing) The dominant explanation for the conflicting results is self-selection Early voluntary adopters had incentives to increase the transparency of their reporting in order to attract outside capital, and, therefore, earnings management (smoothing) went down after adoption, while those firms that waited until IFRS adoption became mandatory in EU countries lacked incentives for transparent reporting leading to increases in earnings management (smoothing) after IFRS adoption We argue that IAS/IFRS standards changed substantially from the early voluntary adoption period to the mandatory adoption year (2005) Compared to earlier IAS/IFRS standards and many countries’ domestic GAAP standards, we maintain that the IFRS standards that went into effect in 2005 provide greater flexibility of accounting choices because of vague criteria, overt and covert options, and subjective estimates that are allowed under these principle-based standards We argue that this greater flexibility coupled with the lack of clear guidance on how to implement these new standards has led to greater earnings management (smoothing) Consistent with this view, we find an increase in earnings management (smoothing) from pre-2005 to post-2005 for Early Adopters and Late Adopters in countries that allowed early IAS/IFRS adoption, and for Mandatory Adopters in countries that did not allow early IFRS adoption Our major findings hold after eliminating firms more likely to have mechanically-induced increases in earnings smoothing properties as a result of IFRS adoption and across countries with and without concurrent improvements in enforcement of accounting standards We also find that firms from countries with less (more) local GAAP flexibility exhibit greater (less) evidence of increases in earnings smoothing following mandatory adoption of IFRS standards in 2005 Collectively, our results suggest that the increased flexibility of new IAS/IFRS standards and lack of clear guidance in implementing these standards are major factors that explain earnings management (smoothing) changes around IFRS adoption

Sameness, Otherness? Enriching Organizational Change Theories With Philosophical Considerations On The Same And The Other

Abstract: Our objective is to discuss, in the organizational change literature, the recurring use of what we call the “sameness principle,” along with another principle, inspired by contemporary philosophy and somehow present in the organizational ethics literature, called “otherness.” We review four classic organizational change approaches, underscore the limitations of the sameness principle, and position otherness relative to current organizational ethics literature. We then emphasize the role of powerful agents within the organization as potential conveyors of otherness and deduce propositions that relate these agents' posture to the observable type of organizational change processes.

Heterogeneous Motives and the Collective Creation of Value

Abstract: The collective creation of value has remained underexplored in management research. Drawing on social psychology and behavioral economics, we analyze the impact of the mix of employee motives to cooperate and compare the collective value generated by three motivational systems: individual monetary incentives, benevolent cooperation, and disciplined cooperation. Aligning the motivational system with the mix of motives in the workforce allows firms to foster cooperation and realize the value creation potential of their resources.