The political economy of corporate governance, cost of equity, and earnings quality : evidence from newly privatized firms

Le contexte de privatisation a deux caractéristiques uniques. Premièrement, plusieurs études empiriques montrent que la majorité des transactions de privatisation sont partielles et le gouvernement reste un actionnaire dans la vaste majorité des firmes privatisées. Contrairement aux investisseurs privés, le gouvernent poursuit des objectifs politiques qui coincident rarement avec la maximisation des profits. Par conséquent, la privatisation nous offre un contexte unique qui nous permet d'investiguer les répercussions de l'intervention du gouvernement dans les firmes nouvellement privatisées sur leur qualité des bénéfices comptables et leur coût du capital-actions. Deuxièmement, le changement majeur dans la structure de propriété des firmes nouvellement privatisées qui est accompagné de problèmes d'asymétrie d'information sévères, nous offre aussi un cadre unique dans lequel nous pouvons investiguer les déterminants du cout du capital-actions et de la qualité des bénéfices. Dans le premier chapitre, nous examinons les déterminants politiques du cout de capital-actions. En utilisant un échantillon international de 126 entreprises en provenance de 25 pays et qui ont été privatisées durant la période 1987-2003, nous présentons des résultats suggérant que les firmes privatisées dans lesquelles le gouvernement maintient des droits de contrôle élevés enregistrent un cout du capital-actions élevé. Ce résultat a été trouvée après avoir contrôlé pour les déterminants au niveau de la firme et du pays du cout du capital-actions. Elle est cohérente avec l'hypothèse de l'interférence politique qui suggère que les actionnaires anticipent le risque d'intervention du gouvernement dans les opérations des firmes nouvellement privatisées et exigent une rémunération plus élevée pour investir dans les firmes privatisées où le risque d'expropriation par le gouvernement est élevé. Ce qui se traduit par une augmentation du cout du capital-actions. N ous trouvons aussi que le cout de capital-actions est significativement relié au système politique et à la stabilité du gouvernement. En particulier, nous trouvons que les firmes en provenance de pays plus démocratiques et de pays avec des gouvernements plus stables bénéficient d'un cout de capital-actions moins élevé. Globalement, notre étude montre que les droits de contrôle du gouvernement et ses caractéristiques politiques déterminent le cout du capital-actions des firmes nouvellement privatisées. Dans le deuxième chapitre, nous examinons comment l'État, les investisseurs institutionnels locaux et les investisseurs étrangers peuvent influencer la qualité des bénéfices des firmes nouvellement privatisées. En utilisant un échantillon unique de 174 firmes en provenance de 29 pays et qui ont été privatisées durant la période 1980- 2003, nous trouvons une évidence forte et robuste qui suggère que la qualité des bénéfices est négativement reliée au contrôle et à la propriété du gouvernement. En particulier, nous trouvons plus de gestion des bénéfices et moins de prudence comptable dans les firmes privatisées où les droits de propriété du gouvernement sont élevés ou dans lesquelles le gouvernement conserve le contrôle. Ce résultat qui est cohérente avec l'hypothèse d'interférence politique suggère que le gouvernement a des fortes motivations à manipuler les bénéfices afin de cacher les bénéfices politiques du contrôle. Nous trouvons aussi un résultat qui suggère que la propriété des investisseurs institutionnels locaux est associée avec une meilleure qualité des bénéfices comptables. En effet, nous trouvons que la propriété des investisseurs institutionnels locaux est associée avec plus de prudence comptable. Ce résultat est cohérent avec le point de vue qui considère que les investisseurs institutionnels jouent un rôle actif dans la surveillance des gestionnaires. De plus, nous rapportons une certaine évidence suggérant que la propriété des investisseurs étranges est associée avec plus de prudence comptable i.e., une meilleure qualité des bénéfices. Globalement, notre étude suggère que la qualité de l'information comptable des firmes privatisées est reliée à l'identité de ses nouveaux investisseurs

Résection laparoscopique d’une duplication gastrique chez l’adulte: traitement avec succès pour une pathologie rare

Les duplications de l'appareil digestif sont les malformations congénitales rares qui peuvent toucher tout  l'appareil digestive depuis la bouche jusqu' à l'anus. Certaines duplications sont asymptomatiques et sont diagnostiqués dans la plupart des cas pendant l'enfance. La prise en charge de la duplication gastrique est essentiellement chirurgicale. Le traitement de choix est l'exérèse complète de la duplication gastrique. Les auteurs rapportent un cas inhabituel de duplication gastrique complètement reséquée par laparoscopie. A notre connaissance, ceci est le premier cas d'une duplication gastrique traitée avec succès par laparoscopie dans la littérature Tunisienne. La Résection laparoscopique peut être ajoutée à l'arsenal thérapeutique dans le traitement chirurgical de duplications du tube digestif.Key words: Duplication, estomac, diagnostic, endoscopi

Uncovering the clinical relevance of unclassified variants in DNA repair genes: a focus on BRCA negative Tunisian cancer families

Introduction: Recent advances in sequencing technologies have significantly increased our capability to acquire large amounts of genetic data. However, the clinical relevance of the generated data continues to be challenging particularly with the identification of Variants of Uncertain Significance (VUSs) whose pathogenicity remains unclear. In the current report, we aim to evaluate the clinical relevance and the pathogenicity of VUSs in DNA repair genes among Tunisian breast cancer families.Methods: A total of 67 unsolved breast cancer cases have been investigated. The pathogenicity of VUSs identified within 26 DNA repair genes was assessed using different in silico prediction tools including SIFT, PolyPhen2, Align-GVGD and VarSEAK. Effects on the 3D structure were evaluated using the stability predictor DynaMut and molecular dynamics simulation with NAMD. Family segregation analysis was also performed.Results: Among a total of 37 VUSs identified, 11 variants are likely deleterious affecting ATM, BLM, CHEK2, ERCC3, FANCC, FANCG, MSH2, PMS2 and RAD50 genes. The BLM variant, c.3254dupT, is novel and seems to be associated with increased risk of breast, endometrial and colon cancer. Moreover, c.6115G>A in ATM and c.592+3A>T in CHEK2 were of keen interest identified in families with multiple breast cancer cases and their familial cosegregation with disease has been also confirmed. In addition, functional in silico analyses revealed that the ATM variant may lead to protein immobilization and rigidification thus decreasing its activity. We have also shown that FANCC and FANCG variants may lead to protein destabilization and alteration of the structure compactness which may affect FANCC and FANCG protein activity.Conclusion: Our findings revealed that VUSs in DNA repair genes might be associated with increased cancer risk and highlight the need for variant reclassification for better disease management. This will help to improve the genetic diagnosis and therapeutic strategies of cancer patients not only in Tunisia but also in neighboring countries

Impact of opioid-free analgesia on pain severity and patient satisfaction after discharge from surgery: multispecialty, prospective cohort study in 25 countries

Background: Balancing opioid stewardship and the need for adequate analgesia following discharge after surgery is challenging. This study aimed to compare the outcomes for patients discharged with opioid versus opioid-free analgesia after common surgical procedures.Methods: This international, multicentre, prospective cohort study collected data from patients undergoing common acute and elective general surgical, urological, gynaecological, and orthopaedic procedures. The primary outcomes were patient-reported time in severe pain measured on a numerical analogue scale from 0 to 100% and patient-reported satisfaction with pain relief during the first week following discharge. Data were collected by in-hospital chart review and patient telephone interview 1 week after discharge.Results: The study recruited 4273 patients from 144 centres in 25 countries; 1311 patients (30.7%) were prescribed opioid analgesia at discharge. Patients reported being in severe pain for 10 (i.q.r. 1-30)% of the first week after discharge and rated satisfaction with analgesia as 90 (i.q.r. 80-100) of 100. After adjustment for confounders, opioid analgesia on discharge was independently associated with increased pain severity (risk ratio 1.52, 95% c.i. 1.31 to 1.76; P < 0.001) and re-presentation to healthcare providers owing to side-effects of medication (OR 2.38, 95% c.i. 1.36 to 4.17; P = 0.004), but not with satisfaction with analgesia (beta coefficient 0.92, 95% c.i. -1.52 to 3.36; P = 0.468) compared with opioid-free analgesia. Although opioid prescribing varied greatly between high-income and low- and middle-income countries, patient-reported outcomes did not.Conclusion: Opioid analgesia prescription on surgical discharge is associated with a higher risk of re-presentation owing to side-effects of medication and increased patient-reported pain, but not with changes in patient-reported satisfaction. Opioid-free discharge analgesia should be adopted routinely

State and foreign ownership and the value of working capital management

In this paper we examine whether state and foreign ownership affect the shape of the value-net working capital (NWC) curve. Using a multinational sample of privatized firms from 54 countries, we provide documentation indicating that the value-NWC curve is U-shaped. We show that shareholders value less (more) increasing NWC in government-controlled (foreign-controlled) firms with a low level of NWC when compared to their non-government-controlled (non-foreign-controlled) peers. These findings are robust to the use of alternative ownership and NWC proxies and when we address endogeneity issues. Furthermore, we find that the negative (positive) relation between state (foreign) ownership and the value of NWC is stronger in firms that are less financially constrained (from countries with strong governance institutions), especially at a low level of NWC. Collectively, our results highlight the importance of ownership type for the value of investment in NWC

Do unemployment benefits affect the choice of debt source?

This study examines whether labor unemployment risk affects the choice of debt source. Specifically, we examine whether US unemployment insurance (UI) benefits, which reduce unemployment risk, lead to a heavy reliance on bank debt. Through difference-in-difference analysis, we find that firms in states with generous UI benefits tend to rely more on bank debt, supporting the monitoring avoidance channel. This finding is robust to a battery of robustness tests. We also find that the positive relationship between UI benefits and bank debt ratio is more pronounced in firms from highly unionized states, labor-intensive firms, and firms with higher asset substitution risk. Finally, we find that debt maturity (security) decreases (increases) when UI benefits increase. - 2019 Elsevier B.V.Scopu

Dividend policy and religion: International evidence from firms with Islamic Label

This paper builds on prior research and argues that religion, as an informal cultural institution, may impose constraints on corporations. The framework of Shariah-compliant firms presents a unique opportunity to investigate this assertion and checks whether firms with Islamic label pay out more or less dividend. Since Islamic Law narrows the investment opportunity sets for Shariah-compliant firms, one would expect Shariah-compliant firms to pay out more dividends to shareholders (investment constraint hypothesis). On the other hand, the prohibition of interest-bearing financing, make of retained earnings an appealing alternative to finance projects, hence resulting in lower dividend payouts (financing constraint hypothesis). Tests on a sample of 13,249 firm-year observations from 17 Islamic countries support the investment constraint hypothesis: Shariah-compliant firms pay out more dividends than non-Shariah compliant ones. Our results are robust to various specifications and after controlling for different variables and addressing potential endogeneity concerns. 2021 Elsevier B.V.Hatem Ghouma acknowldges financial support from Gerarld Shwartz School of Business and St. Francis Xavier University (grant number 98729 ). Hamdi Ben-Nasr acknowledges financial support from Qatar University , QUUG-CBE-DFE-17/18-6 . Both authors thank IdealRatings for providing screening data on Shariah-Compliant firms.Scopu

Board reforms and debt choice

In this study, we examine the impact of board reforms on the choice between bank and public debt. Using a large sample of firm-year observations from 29 countries and a difference-in-difference setting, we find that major board reforms lead to a decrease in bank debt ratio, particularly in companies where bank debt is used for monitoring purposes, suggesting that bank debt and board reforms are substitutes for monitoring managers' actions. We also find that board reforms' adoption is associated with a facilitated access to alternative financing sources with better terms than bank debt. In an additional analysis, we show that the decrease in bank debt ratio is stronger for firms with higher information opacity and those in countries with strong institutional environment. More importantly, we provide evidence that the decrease in bank debt post-reform increases firm value, indicating that the substitution between bank monitoring and board monitoring is a value-enhancing decision. Taken collectively, we conclude that the need for bank monitoring is endogenously determined by the strength of alternative governance mechanisms (i.e. board governance)

Do Patented Innovations Reduce Stock Price Crash Risk?

Using a large sample of US firms, we document a significantly negative relation between the number of patents (citations) and stock price crash risk. Our findings are consistent with the arguments that patented innovation activities send a high-quality signal and reduces proprietary information costs, which lowers information asymmetry and enhance disclosure. Further, we find that such impact of patented innovation on stock price crash risk is more pronounced in firms with weak corporate governance and high information opacity. Our findings provide new evidence on the real effects of patented innovation on crash risk in equity market. - 2019 International Review of Finance Ltd. 2019Scopu