Purpose – The purpose of this paper is to add to our understanding of the monitoring role of multiple large shareholders by examining their impact on the informativeness of firms’ earnings. Design/methodology/approach – We use regression models that relate earnings to stock returns for a sample of 402 French publicly traded firms covered during 2003-2007. Findings – We show that earnings inform...

We introduce protocols for a fully decentralized synchronization of data items among equal peers in an argumentation framework (for applications such as debates in petition signature drives, and deliberation among shareholders). Here, an argumentation is a structured exchange of justifications around issues (or motions). The motions are relevant to organizations, and the organizations are rules...

This essay discusses the corporate governance of banks. Bank managers must balance competing demands from shareholders and regulators, which distinguishes banks from most other firms. The essay is structured into three parts. The theoretical section first broadly defines management and its governance as a process with certain built-in ambiguities that defy a strict notion of accountability. The...

ASSOCIE A :. Institut de Finance Mathématique de Montréal (IFM 2). Laboratoires universitaires Bell Canada. Réseau de calcul et de modélisation mathématique [RCM 2 ]. Réseau de centres d'excellence MITACS (Les mathématiques des technologies de l'information et des systèmes complexes) Les cahiers de la série scientifique (CS) visent à rendre accessibles des résultats de recherche effectuée au CI...

Acquirer cumulative abnormal returns (CARs) have been investigated intensively for more than three decades. CARs measure shareholders’ wealth changes conditional upon a deal announcement. The unconditional acquirer shareholders’ expected profit is, however, the product of the acquirer’s CAR and the probability of making the acquisition. This probability element has been mostly overlooked in the...

The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100 percent small shareholders or one large, controlling owner combined with small shareholders. In this paper, we question the empirical validity of this dichotomy. In fact, one-third of publicly listed firms in Europe have multiple large owners, and the market value of firms ...

This paper reports on the initial stages of an ongoing study of 19th century Wisconsin bank sources and uses of funds. Data on 19th century Wisconsin state, private, and national bank shareholders, and owners from 1860 through 1900 are used to explore the following questions: (1) Where did the equity capital invested in Wisconsin banks originate and how did this and other shareholder characteri...

This paper provides evidence that managers have private information they exploit for …nancial gain at the expense of shareholders. It develops a model of optimal contracting to show that moral hazard, hidden actions taken by agents, can rationalize why a principal would optimally induce agents to bene…t from their private information. Estimates from a structural model shows that moral hazard is...