The effect of large controlling shareholders on equity prices in France: monitoring or entrenchment?

Journal of Management and Governance - The corporate governance literature has shown that firms with better governance exhibit higher abnormal returns. In this paper, we examine the effect of cash...     

Determinants of short-term value creation for the bidder: evidence from France

This paper analyses bidder short-term returns of 58 takeover bids that occur between 1997 and 2005 on the French market. Furthermore, the determinants of this performance are examined to improve understanding of the sources of value creation or destruction arising from M&A. This study reports that M&A are typically friendly, horizontal transaction, and relate to the entire target capital. The event study methodology is used to estimate bidder value creation. Three findings are shown in this study. First, we find strong evidence that the announcement of a takeover bid generates significant, high returns for the bidder with prebid blockholder position in the target (toehold) versus the bidder without toehold. In this case, there is a strong presumption that the synergies’ motive is the prime reason for the offer. Second, these results show that bidders with low potential growth positively influence share price around the bid announcement. In addition, the growth profile of the target is associated with value creation for the bidder.     

Does employee welfare affect corporate debt maturity?

This study examines the effect of employee well-being on the corporate debt maturity structure of U.S. firms. It hypothesizes that a firm's degree of commitment to employee welfare affects its debt maturity structure. Using a sample of 19,347 firm-year observations over the period 1991–2014, we find evidence that firms with higher employee welfare scores prefer long-term debt over short-term debt. This relationship is more pronounced for firms operating in human-capital-intensive industries and firms with lower labor union-membership rate. Our findings are robust to endogeneity concerns and insensitive to the use of alternative regression methods, variable measurements, and sample compositions. This paper provides novel evidence on the role of employment policies and practices in explaining variations in debt maturity.     

Trace of the Variance-Covariance Matrix in Natural Exponential Families

In this article, we introduce the notion of trace variance function which is the trace of the variance-covariance matrix. Under some conditions, we prove that this trace variance function characterizes the Natural Exponential Family (NEF). We apply this characterization in order to estimate the distribution which belongs to some NEFs. Therefore, we introduce the estimator of this trace variance function. We give the asymptotic properties of this estimator. Finally, we illustrate our results using a simulation study.     

Muslim Women and Forced Marriages in the UK

Forced marriage (FM) affects numerous communities within the UK and has far-reaching effects for both individuals and the wider society. This paper attempts to address this issue from an Islamic jurisprudence standpoint. While the paper provides a comparative-contrastive account of key discussions between Muslim jurists (fuqahā’) from the four Sunni schools of law regarding coercion (ikrāh) and its effect on the marriage contract, it pays particular attention to the Hanafi school of law’s position and ways in which its jurists’ reasoning dissents from that of the majority of Sunni jurists. This paper collates the pertinent information, focusing on the effect of coercion (ikrāh) and on the pivotal issues of consent (ri?ā) and choice (ikhtyār). It also considers recent UK legislation and established personal status laws in several Muslim countries. We conclude that FM is incompatible with the objectives of Islamic law and has no reliable basis in its sources, highlighting that the function of the guardian (walī) is to protect the interests of the ward, rather than to exercise authority over those under his guardianship. We suggest that victims of FM in the UK should be able to seek annulment via the courts rather than traditional, community-based, non-enforceable mediation.     

Nonparametric regression method with functional covariates and multivariate response

Nonparametric regression methods have been widely studied in functional regression analysis in the context of functional covariates and univariate response, but it is not the case for functional covariates with multivariate response. In this paper, we present two new solutions for the latter problem: the first is to directly extend the nonparametric method for univariate response to multivariate response, and in the second, the correlation among different responses is incorporated into the model. The asymptotic properties of the estimators are studied, and the effectiveness of the proposed methods is demonstrated through several simulation studies and a real data example.