President of the European Central Bank: do we need a European superhero or a good manager? (1/2)
What is the role of the President of the ECB? Why was her nomination particularly scrutinized? Are there fundamental institutional differences between the central banks of the euro area and the United States, and with what consequences? In this two-part article, Jean-Edouard Colliard shares his analysis. Jean-Edouard Colliard is an associate professor of finance at HEC Paris, where he is also the co-holder of the Chair "Business Analytics for Future Banking" (HEC Paris, Natixis and Ecole Polytechnique). Prior, Prof. Colliard was an economist at the European Central Bank.
How big data gives insight into investor uncertainty
Investor uncertainty plays a key role in economics, affecting asset prices and investment decisions. Getting a useful measure can be important to financial professionals and also government actors, to establish monetary policy. An HEC Paris researcher and two economists of the US Federal Reserve’s Board of Governors found a new way to gauge uncertainty: using data on internet clicks related to specific news.
Change in E.C.B. communication strategy: any improvement?
In September 2019, the European Central Bank (E.C.B.) shifted its forward guidance on rates from short-term calendar-based type to state contingency. This is a form of guidance that relates directly to the state of inflation rather than a specific date. HEC Associate Professor Gaetano Gaballo, argues that this is a positive first move in removing ambiguous policy signals, although more is needed to spur inflation expectations. Gaballo is currently on leave from a post of senior economist at Banque de France after having served as research economist at the E.C.B..
Can we trust credit rating agencies to detect accounting fraud?
Do credit rating agencies detect accounting fraud? Pepa Kraft of HEC Paris, with Allen Huang and Shiheng Wang of Hong Kong University of Science and Technology share their research findings to actually understand the role of credit rating agencies in detecting fraud.
Auditors offering both corporate social responsibility assurance and financial auditing to their clients could be best option for firms
With shareholders and stakeholders becoming more and more concerned with firms’ corporate social responsibility (CSR), audit firms now provide CSR assurance services for sustainability reports. As such, firms wonder whether it is more beneficial to use a financial audit firm that also provides CSR assurance, or to hire a different CSR assurance provider than the financial auditor. Researchers explain why the first option is the best option for firms.
cascad: A new certifying organization to help double-check scientific results
While scientific findings need to be assessed by peers and journal referees, the confidentiality of original data often makes the process arduous. An accredited organization launched by Christophe Pérignon (HEC Paris) and colleagues with access to the original research data can now ensure reproducibility of results. This not only promises huge gains in time and effort for researchers but will also shore up trust in scientific results.
Jean-Michel Gauthier: from the oil industry to the Energy Transition
Jean-Michel Gauthier began his career in the oil industry before switching to consulting. Having spent a total of 30 years in international energy, he now shares his expertise by training leaders from all sectors in energy-transition issues. Jean-Michel is affiliate professor in the finance department at HEC Paris, where he holds the Energy & Finance Chair sponsored by Société Générale.
How companies can offset the risks of foreign investments
Investing abroad can be a risky business for firms, so many only invest in countries that can safeguard investments through treaties. But some companies do invest in less stable countries without the protection of bilateral treaties. Pierre Dussauge, HEC Professor of Strategy and Business Policy explains how these firms instead use their political influence to get ahead of competitors.
Stopping “drug kingpins and rogue nations”: how US economic sanctions are shaping global banks
To date, at least nine international banks have paid enormous sums to the US as a result of violating US economic sanctions, including the French bank BNP Paribas, which was fined nearly $9 billion in 2014. As the US increasingly employs its punitive arsenal to force non-US banks to comply, this has resulted in their Americanization, argue two HEC professors.