Executives and Business Services: Key Factors of French Metropolitan Growth

France has experienced since the 1970s a huge change in employment trends concerning activity sectors but also location patterns. Research by the authors tends to show that the business service sector plays an effective driving role in these dynamics, particularly during the last decade. It seems that new geographical dynamics are now emerging: after a period characterised by an overwhelming tendency to concentrate on the Parisian pole, some diffusion shifts are appearing in favour of second rank metropolitan areas. Their attractiveness depends mainly on executives, particularly inside the business service sector. The variety of activities inside this sector, which was clearly playing the main role at the regional level, seems to be just a second rank variable when explaining the economic dynamism of the metropolis.     

Algorithmic market making for options

In this article, we tackle the problem of a market maker in charge of a book of options on a single liquid underlying asset. By using an approximation of the portfolio in terms of its vega, we show that the seemingly high-dimensional stochastic optimal control problem of an option market maker is in fact tractable. More precisely, when volatility is modeled using a classical stochastic volatility model—e.g. the Heston model—the problem faced by an option market maker is characterized by a low-dimensional functional equation that can be solved numerically using a Euler scheme along with interpolation techniques, even for large portfolios. In order to illustrate our findings, numerical examples are provided.     

Exploring the Curvature of the Relationship Between HRM–CSR and Corporate Financial Performance

Journal of Business Ethics - This article contributes to the general literature on the relationship between corporate social performance and corporate financial performance, as well as to the...     

Geo-Logics of Power: Disaster Capitalism,Himalayan Materialities,and the Geopolitical Economy of Reconstruction in Post-Earthquake Nepal

ABSTRACT

The 2015 earthquakes in Nepal killed more than 9,000 people, displaced millions of people and deeply affected the economy. The earthquakes and reconstructions processes also transformed Nepal into a complex terrain of geoeconomic accumulation and geopolitical manoeuvring, including major international capital flows, the promulgation of a new constitution, an economic blockade by India and the expansion of trade corridors with China. Building on critiques of ‘disaster capitalism’, we propose and mobilize the concept of ‘geo-logics of power’ to draw further attention to the materialities of geopolitical and geoeconomic processes shaping reconstruction in post-earthquake Nepal. Focusing on two trans-Himalayan corridors connecting Nepal and China, we argue that the Nepal experienced a particular form of disaster capitalism: one in which the geo-logics of power – including trans-Himalayan discourses, practices, and materialities – came to shape political and economic transformations of a country long portrayed as a ‘buffer’ state between Indian and China. More broadly, we suggest that geo-logics of power result from a combination of geopolitical and geoeconomic power dynamics informed by geological formations and associated socio-natural processes.     

The Relevance of XBRL Voluntary Disclosure for Stock Market Valuation: The Role of Corporate Governance

The aim of this paper is to investigate the relevance for stock market pricing of accounting earnings of voluntary disclosures in XBRL files considering the quality of corporate governance. Results are the following. It appears that XBRL extensions attract financial analysts. Good governance is positively associated with voluntary XBRL extensions. We observe that XBRL extensions enhance the positive relationship between accounting earnings and stock price. However, this positive association is reduced for firms with good governance, suggesting a substitution effect between XBRL extensions and corporate governance. Finally, it appears that XBRL extensions would strategically be related to earnings quality. This research highlights the importance to consider governance when assessing the value relevance of XBRL disclosures for stock market pricing.     

When Preventing Absenteeism Fuels Long-Sickness Leave: The Case of a Leading Operator for Local Transport Services

We examine the strategy to reduce sickness absences of transit drivers in one of the leading Multinational Operators for Local Transport Services in France. Absenteeism dramatically rose as a result of this strategy. Using observations and interviews at the corporate and field levels, and company data, we disentangle the mechanisms that led to this failure. In a context of strong constraints especially from local communities, the strategy based on underlining the costs of absences pushed local units to change their management practices. They focused on chasing short absences, promoted presenteeism and intensified pressure on workers rather than boosting prevention. Eventually, long-duration sickness leaves massively expanded.     

The ABC-LCA method for the integration of activity-based costing and life cycle assessment

This article presents an approach to integrating life cycle assessment (LCA) into an activity-based costing (ABC) model to develop a steering system that takes into account both financial costs and associated environmental impacts. By combining the formalism of LCA and ABC matrix calculations, we show how impact assessment results can be affiliated with costs to jointly and simultaneously compute the costs and environmental impacts of products and activities. The conditions of integration are developed following the four-step structure of LCA. The proposal is applied to a simplified case study of the ‘Classic Pen Company.’ The developed ABC-LCA approach paves the way for further test applications, which are considered useful in the context of environmental indicators for strategic steering, communication with customers and forecasting or simulation.     

Organizational Sensemaking of Non-ethical Consumer Behavior: Case Study of a French Mutual Insurance Company

Researchers and managers alike are becoming increasingly interested in the topic of unethical consumer behavior. Where most studies view unethical behavior as something that is identifiable per se, the authors of the present article believe that it only exists because it has been constructed by people operating within a specific context. Hence the efforts made by this paper to explore, at the level of one specific organization, how interactions between employees and consumers might lead to the construct of unethical consumers. Based on a case study of France’s AMDM—a mutual insurance company set up to serve a client base comprising motorcyclists—the paper addresses how one group of consumers ends up being categorized as unethical by revealing the existence of a sensemaking process within the target organization. This process develops in three main phases: the nurturing of a shared ethos; the protection of employees’ recognized status; and the demonization of any group of consumers threatening this status. Managers incorporating this sensemaking process can avoid or mitigate the negative effects befalling organizations when these kinds of unethical consumer behavior are constructed.     

A game-theoretic analysis of the Waterloo campaign and some comments on the analytic narrative project

The paper has a twofold aim. On the one hand, it provides what appears to be the first game-theoretic modeling of Napoléon’s last campaign, which ended dramatically on June 18, 1815, at Waterloo. It is specifically concerned with the decision Napoléon made on June 17, 1815, to detach part of his army and send it against the Prussians, whom he had defeated, though not destroyed, on June 16 at Ligny. Military strategists and historians agree that this decision was crucial but disagree about whether it was rational. Hypothesizing a zero-sum game between Napoléon and Blücher, and computing its solution, we show that dividing his army could have been a cautious strategy on Napoléon’s part, a conclusion which runs counter to the charges of misjudgment commonly heard since Clausewitz. On the other hand, the paper addresses some methodological issues relative to “analytic narratives”. Some political scientists and economists who are both formally and historically minded have proposed to explain historical events in terms of properly mathematical game-theoretic models. We liken the present study to this “analytic narrative” methodology, which we defend against some of objections that it has aroused. Generalizing beyond the Waterloo case, we argue that military campaigns provide an especially good opportunity for testing this new methodology.     

Governors' Party Affiliation and Unions

Employing a regression discontinuity (RD) approach on gubernatorial elections in the United States over the last three decades, this paper investigates the causal effects of governors' party affiliation (Democrat versus Republican) on unionization of workers, and unionized workers' working hours and earnings. Surprisingly, we find no significant impact from the party affiliation of governors on union membership and union workers' labor‐market outcomes.