The value of excess cash and corporate governance: Evidence from US. cross-listings

We examine whether and, if so, how a U.S. cross-listing mitigates the risk that managers will squander corporate cash holdings. We find strong evidence that the value investors attach to excess cash reserves is substantially larger for foreign firms listed on U.S. exchanges and over the counter than for their domestic peers. Further, we show that this excess-cash premium stems not only from the strength of U.S. legal rules and disclosure requirements designed to safeguard investors’ money, but also from increased monitoring by financial analysts and large investors. Overall, since investors’ valuation of excess cash mirrors how they expect the cash to be used, our analysis shows that a U.S. listing constrains managers’ inefficient allocation of corporate cash reserves significantly

Cash Savings and Stock Price Informativeness

International audienceThis paper shows that managers use the information they learn from the stock market when they decide on corporate cash savings. In particular, corporate savings are much more sensitive to stock price when the price contains more information that is new to managers. Moreover, the significant effect of stock price informativeness on the savings-to-price sensitivity is not due to market mispricings and remains even after controlling for various sources of public and managerial private information. Overall, the results highlight a new channel through which the stock market affects corporate decisions, which suggests that the stock market is not a sideshow

The Pernicious Effects of Contaminated Data in Risk Management

International audienceBanks hold capital to guard against unexpected surges in losses and long freezes in financial markets. The minimum level of capital is set by banking regulators as a function of the banks' own estimates of their risk exposures. As a result, a great challenge for both banks and regulators is to validate internal risk models. We show that a large fraction of US and international banks uses contaminated data when testing their models. In particular, most banks validate their market risk model using profit-and-loss (P/L) data that include fees and commissions and intraday trading revenues. This practice is inconsistent with the definition of the employed market risk measure. Using both bank data and simulations, we find that data contamination has dramatic implications for model validation and can lead to the acceptance of misspecified risk models. Moreover, our estimates suggest that the use of contaminated data can significantly reduce (market-risk induced) regulatory capital

Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement

This article studies how legal sanctions and enforcement affect brokers’ conflicts of interest emanating from investment banking activities. We exploit the recent adoption of the Market Abuse Directive (MAD) across European countries and use the variation in legal sanctions and enforcement that exists in Europe to identify brokers’ reaction. Overall, the enactment of MAD significantly reduced optimistic investment advice. This reduction is larger in countries equipped with more severe legal sanctions and in countries that strongly enforce the rules. Our analysis underscores the importance of legal sanctions and enforcement power to understand the real consequences of regulatory changes

The potential lethal consequences of rabies vaccine avoidance and dog smuggling in Europe.

International audienceno abstrac

Incidence of cervical, breast and colorectal cancers between 2010 and 2015 in people living with HIV in France

International audienceBackground We aimed to evaluate the incidence rates between 2010 and 2015 for invasive cervical cancer (ICC), breast cancer (BC), and colorectal cancer (CRC) in people living with HIV (PLWH) in France, and to compare them with those in the French general population. These cancers are targeted by the national cancer-screening program.Setting: This is a retrospective study based on the longitudinal data of the French Dat’AIDS cohort.Methods: Standardized incidence ratios (SIR) for ICC and BC, and incidence rates for all three cancers were calculated overall and for specific sub-populations according to nadir CD4 cell count, HIV transmission category, HIV diagnosis period, and HCV coinfection.Results: The 2010–2015 CRC incidence rate was 25.0 [95% confidence interval (CI): 18.6–33.4] per 100,000 person-years, in 44,642 PLWH (both men and women). Compared with the general population, the ICC incidence rate was significantly higher in HIV-infected women both overall (SIR = 1.93, 95% CI: 1.18–3.14) and in the following sub-populations: nadir CD4 ≤ 200 cells/mm3 (SIR = 2.62, 95% CI: 1.45–4.74), HIV transmission through intravenous drug use (SIR = 5.14, 95% CI: 1.93–13.70), HCV coinfection (SIR = 3.52, 95% CI: 1.47–8.47) and HIV diagnosis before 2000 (SIR = 2.06, 95% CI: 1.07–3.97). Conversely, the BC incidence rate was significantly lower in the study sample than in the general population (SIR = 0.56, 95% CI: 0.42–0.73).Conclusion: The present study showed no significant linear trend between 2010 and 2015 in the incidence rates of the three cancers explored in the PLWH study sample. Specific recommendations for ICC screening are still required for HIV-infected women and should focus on sub-populations at greatest risk

Incidence of cervical, breast and colorectal cancers between 2010 and 2015 in people living with HIV in France

International audienceBackground We aimed to evaluate the incidence rates between 2010 and 2015 for invasive cervical cancer (ICC), breast cancer (BC), and colorectal cancer (CRC) in people living with HIV (PLWH) in France, and to compare them with those in the French general population. These cancers are targeted by the national cancer-screening program.Setting: This is a retrospective study based on the longitudinal data of the French Dat’AIDS cohort.Methods: Standardized incidence ratios (SIR) for ICC and BC, and incidence rates for all three cancers were calculated overall and for specific sub-populations according to nadir CD4 cell count, HIV transmission category, HIV diagnosis period, and HCV coinfection.Results: The 2010–2015 CRC incidence rate was 25.0 [95% confidence interval (CI): 18.6–33.4] per 100,000 person-years, in 44,642 PLWH (both men and women). Compared with the general population, the ICC incidence rate was significantly higher in HIV-infected women both overall (SIR = 1.93, 95% CI: 1.18–3.14) and in the following sub-populations: nadir CD4 ≤ 200 cells/mm3 (SIR = 2.62, 95% CI: 1.45–4.74), HIV transmission through intravenous drug use (SIR = 5.14, 95% CI: 1.93–13.70), HCV coinfection (SIR = 3.52, 95% CI: 1.47–8.47) and HIV diagnosis before 2000 (SIR = 2.06, 95% CI: 1.07–3.97). Conversely, the BC incidence rate was significantly lower in the study sample than in the general population (SIR = 0.56, 95% CI: 0.42–0.73).Conclusion: The present study showed no significant linear trend between 2010 and 2015 in the incidence rates of the three cancers explored in the PLWH study sample. Specific recommendations for ICC screening are still required for HIV-infected women and should focus on sub-populations at greatest risk