Research seminars

Financial Statement Comparability and the Efficiency of Acquisition Decisions

Accounting & Management Control

Speaker: Daniel W. Collins
University of Iowa

4 July 2014 - Room S210 - From 2:00 am to 4:00 am

This study examines whether acquirers make better acquisition decisions when target firms’ financial statements exhibit greater comparability with industry peer firms. We predict and find that acquirers’ make more profitable acquisition decisions when targets’ financial statements are more comparable—as evidenced by higher merger announcement returns, higher acquisition synergies, and better future operating performance. We also find that post-acquisition goodwill impairments and post-acquisition divestitures are less likely when target firms’ financial statements are more comparable. Finally, we find the effect of targets’ comparability is more pronounced when acquirers’ ex-ante information asymmetry is higher and when acquisitions are accomplished via tender offers to target shareholders. In total, our evidence suggests targets’ financial statement comparability helps acquirers make better acquisition-investment decisions and fosters more efficient capital allocation.


Accounting & Management Control

Speaker: Stefen WALKER
University of Edinburgh

25 October 2019 - HEC Paris - Room T030 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Alfred WAGENHOFER
University of Graz

11 October 2019 - HEC Paris - Room T022 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Marion FOURCADE
University of California - Berkeley

27 September 2019 - HEC Paris - Room T015 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Allen HUANG

24 May 2019 - HEC Paris - Room T017 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Claire DAMBRIN

12 April 2019 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Arnt VERRIEST

29 March 2019 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Sharon KATZ

15 March 2019 - HEC Paris - Room T022 - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Tsahi VERSANO
Tel Aviv University

22 February 2019 - HEC Paris - Room T017 - From 2:00 pm to 4:00 pm

“Globalization of Quantitative Policing: Between Management and Statactivism”

Accounting & Management Control

Speaker: Emmanuel DIDIER

9 November 2018 - HEC PARIS - Room T015 - From 10:00 am to 12:00 pm

Information policing seems to be pervading public security police all around
the world. This review asks whether this appellation describes a homogeneous
set of phenomena. Compstat was the first program to massively computerize
policing. The literature reviewed here follows its fate in the United
States and, on a global scale, in France, where the program was imported.
The review successively discusses the perspective of managers who were favorable
to the program and that of “statactivists,” activists who use statistics,
who were opposed to it. Despite the many differences intervened during
the importation process, especially in the balance of expertise and publicity,
some points seem to be common to both contexts, such as the building of
a computer infrastructure, a specific use of the data, and the constructive
tensions between the police institution and its critics.

Tax Incentive Heterogeneity between Shareholders, Voting Rights Power, and Capital Structure

Accounting & Management Control

Speaker: Paul Pronobis
ESCP Europe Business School

19 October 2018 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm

Using a sample of public European firms and a multitude of shifts in cross-country taxation data, we examine the influence of individual shareholders’ tax incentives on capital structure. We find that the largest shareholder’s tax incentive for debt positively influences leverage. We also find that the second-largest shareholder’s tax incentive for debt is incrementally relevant for leverage. However, tax incentive heterogeneity between shareholders reduces the positive influence of the largest shareholder’s tax incentive on leverage. Finally, we document that the relevance of the largest shareholder’s tax incentive for capital structure decisions is increasing in the level of voting rights power.

Accounting, Simultaneity and Relative Completeness: The Sales and Operations Planning Forecast and the Enactment of the "Flow of the Product".

Accounting & Management Control

Speaker: Reaven YU
University of Sydney

12 October 2018 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm

This is a study of the dynamic relations between accounting and an object it enacts. It analyses the construction of a Sales and Operations Planning (S&OP) forecast which is involved in attempts to coordinate laterally interdependent production and sales processes (a ‘flow of the product’) which ‘strike back’ and challenge accounting’s inscriptions hereof. This is important because much literature on accounting’s precariousness focuses primarily on how managers read, talk and make sense of accounting when realities it re-presents are absent. This paper analyses accounting when its development and role is an effect of a dynamic interaction with the ‘flow of the product’ which continually reveals new subsistence to be taken into account by accounting. The analysis finds that not only accounting but also the subsistence of the ’flow of the product’ have histories which meet and develop new accountings at so-called crossing points. The study makes two contributions. Firstly, it shows that when realities are ontologically multiple, such as the ‘flow of the product,’ accounting proliferates but neither substitutes a previous one nor competes with other ones; accounting accumulates and become multiple. Therefore, many accountings co-exist in a temporality of simultaneity rather than in one of succession. Here, accountings inscribe the many different time-spaces that proliferate because of the requirement of adaptation to many others with different time-space horizons due to the principle of lateral coordination. Secondly, the study proposes relative completeness as a complementary mechanism to that of incompleteness and instability. Relative completeness here refers to a situation where accounting co-exists with the subsistence of reality that it develops into a decision opportunity. Accounting exists side by side of the subsistence that it makes visible in planning terms. Absences are performative under relative completeness because they have been discovered, inscribed, delegated and topologised along with accounting. Accounting and subsistence are both part of the realities enacted as the ‘flow of the product.’

Accounting for violence: Heterogeneous interests, the crafting of distinctions, and accounting

Accounting & Management Control

Speaker: Kalle Kraus
Stockholm School of Economics

14 September 2018 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm

This paper examines how accounting is implicated in the crafting of distinctions with a view to understanding how sporting organisations manage heterogeneous and potentially conflicting interests. We do so in the context of accounting for violence, examining legislation concerning the payment by Swedish elite football clubs of policing costs with respect to public safety and order on match day. The Public Order Act (1993) stated such costs were payable by entities with a “profitable purpose”. However, the meaning of a profitable purpose has been subject to ongoing contestation by football clubs, which are required to manage both the commercial interests of male elite football and the extensive amateur interests embedded in overarching voluntary sport organisations. Callon and Muniesa’s (2005) proposition guides our research; the materialisation of distinctions is central to accounting in a context of conflicting interests. We follow the crafting of distinctions between the responsibility for the payment or non-payment of policing costs in the Swedish premiere league between 1999-2014. Our narrative is informed by documentary and interview data, which focuses on one of the high-risk Stockholm clubs. We highlight the constructed and contested materiality of the distinctions informing accounting calculations. Our research also has practical implications for sports administrators, demonstrating the importance of distinctions and the role of accounting in managing the potentially contradictory and heterogeneous interests associated with sporting clubs.

Disclosure and Financing Choice: PIPEs vs. SEOs

Accounting & Management Control

Speaker: Shiva Sivaramakrishnan
Rice University

15 June 2018 - HEC Paris - Room X120 - From 2:00 pm to 4:00 pm

Firms in competitive industries have natural incentives to avoid wide dissemination of proprietary information. We test this proprietary cost hypothesis (PCH) by examining the impact of corporate disclosure policy on a firm’s equity financing choice between Private Investments in Public Equity (PIPEs) and Seasoned Equity Offerings (SEOs). PIPEs offer firms a way to share proprietary information privately with a small group of investors. We employ several concentration and competition constructs to proxy for proprietary costs, but fail to find support to this hypothesis. Consistent with the literature, our results indicate that an “urgent need for cash” explains firms’ choice of PIPEs over SEOs. We also find that firms that choose SEOs over PIPEs are characterized by higher holdings by dedicated institutions, transient institutions and quasi-indexers. However, the PCH does not receive support even after controlling for these other determinants of the financing choice. Finally, we estimate a two-stage endogenous treatment-effect model to explain discounts associated with PIPEs and SEOs. Preliminary results indicate that discounts are lower when unobservables (e.g., private information) seem to influence the choice of PIPE over SEO.

Parent−Subsidiary Common Managers and Corporate Tax Planning

Accounting & Management Control

Speaker: Xin Wang
Hong Kong University

8 June 2018 - HEC Paris - Room T004 - From 2:00 pm to 4:00 pm

As an interesting but neglected governance mechanism of a firm’s subsidiaries, corporate headquarters managers often take a position in significant subsidiaries (“parent-subsidiary common manager” hereafter), either as the board member or the operations manager. These parent-subsidiary common managers have direct access to divisional information and, therefore, possess greater knowledge useful for them to identify tax opportunities and coordinate tax-motivated activities across business units. Using senior executives’ subsidiary positions disclosed in Chinese listed firms’ annual reports, we examine the impact of parent-subsidiary common managers on corporate tax planning and find a lower effective income tax rate for firms appointing common managers. Additional analyses show that the tax-avoiding effect of common managers is more pronounced for firms with more intangible assets, more related-party transactions involving subsidiaries, and more diversified business. Moreover, we find stronger effects for those common managers who take a position in economically significant subsidiaries or subsidiaries entitled to preferential tax treatments. The effect is also stronger when common managers work as operations managers of the subsidiaries. Collectively, our study is the first to analyze the appointment of parent-subsidiary common managers and to show the impact of such an appointment on corporate decisions.

Accounting for tacit coordination

Accounting & Management Control

Speaker: Hendrik Vollmer
University of Leicester

25 May 2018 - HEC Paris - Room T020 - From 2:00 pm to 4:00 pm

Tacit coordination is a pervasive aspect of accounting practice. This paper teases out insights on tacit coordination from existing scholarship, starting with studies of everyday life accounting, then turning to professional practice. It develops an understanding that, in the application of rules and accounting standards, in producing, framing, auditing and using statements, records, apologies or excuses, accounting practitioners tacitly coordinate towards the passing of accounts. This passing can be articulated in terms of structures, agencies and processes of tacit coordination involved in making accounting happen. The implications of this understanding of accounting practice and the importance of the wider domain of enquiry it is indicating are discussed with respect to the stewardship position of accounting professionals and to the further development of accounting theory. The paper identifies a need for broad-based forms of accounting theory to support accounting practitioners in the stewardship of silence and provide an antidote against the idea that any account, any slice of information, or any amount of ‘big data’, could speak for itself – or that it should.

Contact Us  

Accounting & Management Control Department

Campus HEC Paris
1, rue de la Libération
78351 Jouy-en-Josas cedex

Featured Faculty  


Accounting and Management Control

Consult résumé