bluuebunny/crossref_metadata_2025_split huggingface dataset:
Incentives from stock option grants: a behavioral approach
Authors: Bahaji Hamza 
Published: August 2011

PurposeThis paper aims to analyze the valuation of stock options from the perspective of an employee exhibiting preferences as described by cumulative prospect theory (CPT). In addition, it elaborates on their incentives effect and some implications in terms of design aspects.Design/methodology/approachThe paper draws on the CPT framework to derive a continuous time model of the stock option subjective value using the certainty equivalence principle. Numerical simulations are used in order to analyze the subjective value sensitivity with respect to preferences‐related parameters and to investigate the incentives effect.FindingsConsistent with a growing body of empirical and experimental studies, the model predicts that the employee may overestimate the value of his options in‐excess of their risk‐neutral value. Moreover, for typical setting of preferences parameters around the experimental estimates, and assuming the company is allowed to adjust existing compensation when making new stock option grants, the model predicts that incentives are maximized for strike prices set around the stock price at inception. This finding is consistent with companies’ actual compensation practices. Finally, the model predicts that an executive who is subject to probability weighting may be more prompted than a risk‐neutral executive to act in order to increase the firm's assets volatility.Originality/valueThis research proposes an alternative theoretical framework for the analysis of pay‐to‐performance sensitivity of equity‐based compensation that takes into account a number of prominent patterns of employee behavior that expected utility theory cannot explain. It contributes to recent empirical and theoretical researches that have advanced CPT framework as a promising candidate for the analysis of equity‐based compensation contracts.
Multiple large shareholders and earnings informativeness
Authors: Boubaker Sabri , Sami Hind 
Published: August 2011

PurposeThe purpose of this paper is to add to the understanding of the monitoring role of multiple large shareholders (MLS) by examining their impact on the informativeness of firms' earnings.Design/methodology/approachThe paper uses regression models that relate earnings to stock returns for a sample of 402 French publicly traded firms covered during 2003‐2007.FindingsThe paper shows that earnings informativeness is significantly positively related to the owner's ultimate cash flow rights. Consistent with the alignment effect, stock ownership aligns management and shareholders interests which reduces managers' incentives to manipulate accounting information. It also finds that earnings informativeness is significantly negatively related to the excess control of the ultimate controlling shareholder. This result supports the entrenchment effect and suggests that controlling shareholders have greater incentives to obscure accounting figures when expropriation is likely. Finally, control contestability of the largest controlling shareholder mitigates information asymmetry problems thereby enhancing earnings informativeness.Research limitations/implicationsThe findings stress the importance of MLS in enhancing internal monitoring and mitigating agency costs. Because France is characterized by a weak legal system, highly concentrated ownership structures and excess control, the results provide valuable insights to mitigate extreme agency problems.Originality/valueThe paper adds to the literature on corporate governance and the quality of accounting information by investigating strategic interactions between various blockholders and their impact on earnings informativeness. The study complements prior studies on the monitoring role of MLS by demonstrating that both their presence and control size translate into significantly greater earnings informativeness.
Do IFRS provide better information about intangibles in Europe?
Authors: Sahut Jean‐Michel , Boulerne Sandrine , Teulon Frédéric 
Published: August 2011

PurposeThe purpose of this paper is to study the information content of intangible assets under IAS/IFRS when compared to local GAAP for European listed companies.Design/methodology/approachThe paper employs multivariate regression models for a sample of 1,855 European listed firms in a six‐year period, from 2002 to 2004 in local GAAP and from 2005 to 2007 in IAS/IFRS to investigate the empirical relationships between market value of European firms and book value of their intangible assets.FindingsThe results suggest that the book value of other intangible assets of European listed firms is higher under IFRS than local GAAP and has more informative value for explaining the price of the share and stock market returns. European investors, however, consider the financial information conveyed by capitalized goodwill to be less relevant under IFRS than with local GAAP. Thus, identified intangible assets capitalized on European company balance sheets provide more value‐relevant information for shareholders than unidentified intangible assets that have been transferred into goodwill, with the exception of Italian and Finnish investors.Originality/valueThe paper adds to the existing literature on IFRS by documenting the association between the market value of European listed firms and the book value of their goodwill and other intangibles assets. The study complements prior studies by demonstrating that country differences persist despite the use of common accounting standards and that legal and regulatory country characteristics as well as market forces could still have a significant impact on the value relevance of accounting data.
Related parties transactions and firm's market value: the French case
Authors: Nekhili Mehdi , Cherif Moêz 
Published: August 2011

PurposeThe purpose of this article is to study the impact of the related parties' transactions (RPTs) on firm value, and to identify the ownership and governance characteristics of companies that engage in this type of transactions.Design/methodology/approachThe paper uses 3SLS simultaneous model carried out on a sample of 85 companies listed on the Paris Stock Exchange during the period 2002‐2005.FindingsThe results show that RPTs are mainly influenced by the voting rights held by the main shareholder, the size of the board of directors, the degree of independence enjoyed by the audit committee and the board of directors, the choice of external auditor, the debt ratio and the fact of being listed in the USA. Mainly the transactions carried out directly with the main shareholders, directors and/or managers that have a negative influence on firm value.Research limitations/implicationsIn future studies, it will be interesting to test the impact of the level of expertise as well as the level of qualification in the field of accounting and finance of the members of the French audit committees on the frequency of RPTs.Originality/valueThe current research complements prior studies on the RPT by showing that the frequency of RPTs can be damaging to companies and can destroy their market value.
Nonlinear mean reversion in oil and stock markets
Authors: Jawadi Fredj , Bellalah Mondher 
Published: August 2011

PurposeWhile price studies such as Jawadiet al.generally focus on the relationships between oil and stock markets through the study of oil price on stock markets, this paper takes a different perspective to the linkages between oil and stock markets. This study sets out to investigate the efficiency hypothesis for oil markets while testing for whether oil price dynamics depend on stock market fluctuations or not.Design/methodology/approachUsing nonlinear econometric modeling, this paper investigates the oil market adjustment dynamics for four developed and emerging countries: France, the USA, Mexico and the Philippines. Our findings show strong evidence of significant linkages between oil and stock markets for all the countries under consideration.FindingsAs in Jawadiet al.who focus on stock price dynamics regarding oil price, the findings of this present paper, which focuses more on the oil industry, also point to an asymmetrical mean‐reversion between oil and stock markets that occurs in a nonlinear manner. They reject the informational efficiency hypothesis for oil markets. Indeed, while the previous literature often highlights the stock markets' dependence on the oil industry, this study contributes to the literature by concluding in favor of significant feedback from stock to oil markets, which is not compatible with the efficiency principle according to Fama.Research limitations/implicationsThis paper develops a new nonlinear framework that should improve the investigation of oil‐stock market linkages. Future research could check the forecasting properties of this model to forecast the future dynamics of oil prices.Originality/valueThis paper adds to the literature by suggesting that it is not only oil shocks that affect stock markets, but that the latter also have a strong nonlinear impact on oil markets, reducing the diversification benefits of oil‐stock portfolios.
Risk premia in CO2 allowances: spot and futures prices in the EEX market
Authors: Madaleno Mara , Pinho Carlos 
Published: August 2011

Purpose
– This paper seeks to analyze stylized statistical properties of the recent traded asset CO2 emission allowances, for spot and futures returns, examining also the relation linking convenience yield and risk premium, for the German European Energy Exchange (EEX) between October 2005 and October 2009.

Design/methodology/approach
– The study was conducted through empirical estimations of CO2 allowances risk premium, convenience yield, and their relationships.

Findings
– Future prices from an ex-post perspective are examined to show evidence for significant negative risk premium, or a positive forward premium. A positive relationship between risk premium and time-to-maturity is found. Both financial concepts are found to be negatively affected by spot price volatility. Convenience yield is positively influenced by CO2 price, while influencing the risk premium positively.

Practical implications
– From a financial perspective, allowances seem to be producing the desired effects in terms of environmental policies, although a lot more remains to be done. The presence of risk premium and convenience yield makes it clear that agents act in this commodity market according to risk consideration. Results change depending on phase and futures contracts used for the determination of both financial terms, indicating that uncertainties over the future of EU-ETS seem to be decreasing.

Originality/value
– Previous research has mainly focused on the first phase of the EU-ETS (2005-2007), whereas this paper extends the analysis period here. The paper finds some opposite results compared with previous commodities theories and designs some policy implications, given the results attained.
Industrial hazardous waste in the framework of EU and international legislation
Authors: J. Inglezakis Vassilis , Zorpas Antonis 
Published: August 2011

Purpose
– The aim of the present study is to present in a systematic way the subject of industrial hazardous waste from the point-of-view of definitions in engineering, science and legislation. This analysis is necessary, as many different approaches and overlapping definitions are used for the classification of waste, leading to different results, a situation that often complicates the collection and interpretation of data on waste.

Design/methodology/approach
– The study is conducted by bringing together the extended experience of the authors and other experts in the field of environmental legislation and a wide variety of scientific and legislative sources as well as articles and research reports. The focus is the European Union, while several approaches from the international area are presented.

Findings
– The study presents and clarifies several waste typologies and provides a roadmap for professionals and researchers in the field of waste management. Furthermore, the findings reveal the need for a unified and robust definition of the term as well as the need for globalization of similar terms in order to unify and value the relevant data.

Practical implications
– The study highlights the problem of definitions and approaches as well as the gap between what engineers and legislation experts mean by the term industrial hazardous waste. The paper represents an effort to establish a basis for unification of the relevant terms.

Originality/value
– The paper provides an in-depth analysis on the industrial hazardous waste field and the relevant problems including actual data found in the international literature. The value of the research is that it brings together all existing experience and knowledge in the field in the form of a review paper, useful for professional and policy makers in the field.
Proposal for a new allocation method of environmental goals applied to an Algerian cement factory
Authors: Saadi Saadia , Djebabra Mébarek , Boubaker Leila 
Published: August 2011

Purpose
– This paper seeks to focus on environmental management and is part of a persistent operation of industrial enterprises. This context is justified by the fact that, despite taking the value of environmental management, many Algerian enterprises fail to ensure integration of environmental considerations into their business activities.

Design/methodology/approach
– It is a proposal of a method for corporate environmental policy through the allocation of the global environmental goal.

Findings
– The method of allocation of the global environmental goal proposed is based on the criticality of the environmental risk that must make it acceptable or tolerable. The allocation principle used is based on a judicious choice of the weight allowance with reference to the criticality grid of environmental risks.

Practical implications
– The method of allocation of the global environmental goal is a valuable help to Algerian companies to ensure better integration of the environment into production, especially Algerian cement factories known for their polluting activities.

Originality/value
– The method of allocation of the global environmental goal is framed by the proposed GRAI approach and especially by its concept of “period-horizon” which can enhance the contribution of the proposed method, especially to the planning decisions for achieving the global environmental goal.
Business in climate or climate in business?
Authors: Sepúlveda Joel , Mendizabal Maddalen 
Published: August 2011

Purpose
– The aim of this paper is to present a new methodological approach to help companies improve their decision-taking capacity regarding corporate social responsibility (CSR) in the context of climate change (CC).

Design/methodology/approach
– The study was conducted by combining a wide variety of sources including articles and research reports. Taking into account the complexity of adapting in a context of climate change, the paper developed a simplified conceptual model that integrates multi-criteria analysis. A vulnerability matrix was generated as a combination of adaptive capacity, exposure and sensitivity and how to measure the magnitude, persistence, uncertainty, temporality, degree of importance in combination with the impacts.

Findings
– The first results reveal that activities related to water resources or natural ecosystems are more important than those related to energy or tourism sectors, and that there is a relationship between opportunities and adaptation needs.

Practical implications
– The paper documents the inverse relationship between adaptation measures and opportunities in a study that may be a starting-point for further research into empirical observations of sector vulnerability and the impact and integration of the factor of resilience.

Originality/value
– The paper provides a common language to use in the business world for concepts related to climate change. It provides a methodological approach for finding solutions to the problem of resource optimisation in companies and helps to find new business opportunities for sectors.
Impacts of bitumen deposit on surface waters
Authors: Adebiyi F.M. , Asubiojo O.I. 
Published: August 2011

Purpose– This paper aims to examine the quality of the surface waters of the bitumen deposit area of Nigeria and also to establish the relationship between the deposit and the waters.Design/methodology/approach– Physico-chemical parameters were measured using standard analytical procedures, while the elemental contents were determined using total reflection X-ray fluorescence spectroscopy. Data acquired were interpreted using statistical techniques – charts,t-test, pollution index (PI) and cross-plot analysis.Findings– A river located close to the bitumen well contained the highest concentrations of metals that are known to be associated with hydrocarbon formation. Comparison of the levels of the analyzed parameters in the waters with their standard permissible limits showed that the levels of Cl−, SO42-, total alkalinity and Cr, Mn, Fe, Ni, Cu, Zn and Pb in the river very close to the capped bitumen well and big rivers were high and low in the small streams. This was corroborated by their pollution index values. Results of the cross-plot analysis of the waters-river close to bitumen well/bitumen (R2=0.5); small streams/bitumen (R2=0.8) and big rivers/bitumen (R2=0.2) showed moderate; strong and weak positive correlations respectively, suggesting moderate, strong and weak inter-element correlations respectively between the sets of waters and the Nigerian bitumen deposit, and also establishing relationships between the deposit and the surface waters.Originality/value– The paper provides insight into the potability of the waters; establishment of the inter-element relationship between the bitumen deposit and the waters. These results can serve as a fingerprint for bitumen exploration elsewhere and for similar mineral deposit settings.
IT for a better future: how to integrate ethics, politics and innovation
Authors: Carsten Stahl Bernd 
Published: August 2011

PurposeThe paper aims to explore future and emerging information and communication technologies. It gives a general overview of the social consequences and ethical issues arising from technologies that can currently be reasonably expected. This overview is used to present recommendations and integrate these in a framework of responsible innovation.Design/methodology/approachThe identification of emerging ICTs and their ethical consequences is based on the review and analysis if several different bodies of literature. The individual features of the ICTs and the ethical issues identified this way are then aggregated and analysed.FindingsThe paper outlines the 11 ICTs identified. Some of the shared features that are likely to have social relevance include an increase in natural interaction, the invisibility of technology, direct links between humans and technology, detailed models and data of humans and an increasing autonomy of technology that may lead to power over the user. Ethical issues include several current topics such as privacy, data protection, intellectual property and digital divides. New problems may include changes to the way humans are perceived and the role of humans and technology in society. This includes changing power structures and different ways of treating humans.Research limitations/implicationsThe paper presents a piece of foresight research which cannot claim exact knowledge of the future. However, by developing a detailed understanding of possible futures it provides an important basis for current decisions relating to future technology development and governance.Practical implicationsThe paper spells out a range of recommendations for both policy makers and researchers/industry. These refer to the framework within which technology is developed and how such a framework could be designed to allow the development of ethical reflexivity.Social implicationsThe work described here is likely to influence EU policy on ICT research and technology research and innovation more broadly. This may have implications for the type of technologies funded and broad implications for the social use of emerging technologies.Originality/valueThe paper presents a novel and important broad view of the future of ICTs that is required in order to inform current policy decisions.
Toward a normative ethics for technology development
Authors: Rainey Stephen , Goujon Philippe 
Published: August 2011

PurposeThe purpose of this paper is to criticise ad hoc approaches to ethics in research and development in technology as descriptive and non‐ethical, and based upon a narrow conception of rationality.Design/methodology/approachThe approach deploys a theory of normativity that can incorporate values and a broad conception of rationality, in order to account for the relevance of issues for the addressees of normative injunctions.FindingsA normative approach is possible and required in order to implement ethics in research and development in technology.Originality/valueThe approach draws together themes from current alternative approaches that each fail to deploy the full resources of the normative approach, and so fail to fully account for ethics. This approach identifies and moves beyond present limited approaches.
Forced pirates and the ethics of digital film
Authors: Meissner Nico 
Published: August 2011

PurposeWith the rise of the internet, the act of sharing copyrighted material has received a lot of attention, culminating in a flood of lawsuits against file‐sharers as well as studies concerning the costs of file‐sharing for the entertainment industry. This paper attempts to judge whether file‐sharing really is an ethically problematic act and, upon achieving this, goes on to propose strategies to avoid file‐sharing and discuss ethical considerations surrounding those distribution alternatives.Design/methodology/approachThe paper limits its discussion to the medium of moving images. It tries to achieve above aims by applying the ethics of Immanuel Kant to the phenomenon of file‐sharing on the internet and borrowing ideas for alternative, file‐sharing avoiding, strategies from practitioners and media commentators and applying Kant's ideas to those.FindingsThe paper argues that file‐sharing cannot, per se, be considered to be unethical. While file‐sharing has positive and negative aspects, the proposed alternative distribution strategies, a one‐stop shop and giving films away for free, seem to avoid the negative implications of file‐sharing while not impeding with its positive facets. The paper concludes that, since the suggested strategies exist but are not yet implemented by the commercial film industry, the moral responsibility for file‐sharing lies with the commercial film industry, not with the individual file‐sharer.Originality/valueThe paper hence adds to the discussions surrounding online files haring by shifting the focus towards the entertainment industry as well as by providing alternative, file‐sharing avoiding, distribution solutions.
The portable panopticon: morality and mobile technologies
Authors: De Saulles Martin , Horner David S. 
Published: August 2011

PurposeThe purpose of this paper is to explore ethical issues arising from the mass deployment and take‐up of mobile technologies.Design/methodology/approachThe ethical dimensions of mobile technologies and their use among the general population are considered within a conceptual framework drawing on James Moor's belief in a need for “better ethics” for emerging technologies and Michel Foucault's development of Jeremy Bentham's panopticon as a tool of surveillance.FindingsIt is found that the mass deployment and use of mobile technologies amongst the general population raise some interesting questions about the changing nature of surveillance and the ethical issues that come out of this.Originality/valueThe paper offers an original perspective on the ethical issues arising from new mobile technologies and surveillance by inverting the established top‐down notion of technology and control derived from Foucault.