Profits, malversations, restitutions. Les bénéfices des financiers durant la guerre de la Ligue d’Augsbourg et la taxe de Chamillart

Profit, embezzlement, restitution. The role of the traitants in the Nine Years War and Chamillart’s tax on financial benefits The aim of this article is to revisit the question of the financiers in Old Regime France. It starts with an analysis of the discourses about the financiers under the Absolute monarchy that underlines the complexity of their relationship with the government and the public. It then reviews the secondary literature and highlights the existence of competing historical interpretations (functional, political, utilitarian), which raise the question of their overall capacity to account for the role and impact of the financiers at different times. On this ground, the article focuses on a specific group of financiers, the so-called traitants d’affaires extraordinaires, during the Nine Years War. Further to a description of the specific role and scope of the activities of the various financiers responsible for helping the monarchy to raise the funds it needed to pay for its peace and wartime expenditure, the article examines the conditions and profits granted by the king in his contracts with the traitants whose services were hired for the purpose of selling royal offices in the public and advancing the revenue to the Treasury. It also explores the contractual arrangements of the companies established by the financiers to manage their operations as well as the rights and the responsibilities of their various stakeholders. These bases being laid, the article relies on the administrative correspondence relating to the traités during the Nine Years War to address a range of issues, in particular the extent to which these contracts, and other control procedures, were robust enough to deter fraud. The accounts of two traitants’ companies offer an opportunity to analyse and compare the structure of their income and expenditure (including the volume and cost of the promissory notes sold in the public to finance their payments to the Treasury), to explore the strategies of the contractors, to calculate their net profits and further discuss the problem of embezzlement. The article ends with the study of the context and debates which led to the introduction by finance minister Michel Chamillart, in 1700, of a shortfall tax on the financial profits of the gens d’affaires or traitants, the method used to determine its rate (50 % of the net benefits), its distribution among the various stakeholders (including the bailleurs de fonds or backers), and the related procedures. In total, the article argues that the relationship between the monarchy, society and the financiers under the Ancien Regime was not static and, therefore, suggests that the broad question of control and fraud must be examined against changing circumstances. With regard specifically to the Nine Years War, the article concludes that within the constraints of the Absolute monarchy, contractors offered valuable services by raising capital for the benefit of a king who ruled over a country which, at the time, was by far the wealthiest in Europe, and where ministers failed to foresee long wars of attrition and whose financial strategy was limited by the very existence of privilege. Overall, the traités were too costly to be a viable system of war financing. In these conditions, the substantial fortunes made by a handful of very successful traitants suffice to explain that the government easily gave in to public criticism against the wealth of the financiers and felt compelled, when peace resumed, to cancel the advantageous conditions offered in the treaties by taxing financial profits.

The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation

We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.

Do investors care about corporate tax?

This paper conducts a comprehensive examination of the link between corporation tax payment and financial performance in the UK. We find no discernible link between tax rates and stock returns for the UK, no matter how tax payment is measured. This is true throughout the sample period and for both customer-facing and non-customer-facing companies. However, allowing for industry norms and a host of firm characteristics, companies with lower effective tax rates have significantly higher levels of stock market risk. Firms that are reported in the newspapers in a negative way in relation to their level of corporation tax payment experience small negative stock returns, which are partially reversed within a month. However, the initial negative effects and subsequent rebound are both more pronounced for smaller companies. News announcements of the potential involvement of a firm in a corporate inversion (expatriation) result in steeper and much longer-lasting falls in share prices, whereas news stories of a more general nature relating to a firm's tax avoidance or tax payments have little noticeable effect.

Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe

Purpose – The purpose of this paper is to seek to shed light on the practice of incomplete corporate disclosure of quantitative Greenhouse gas (GHG) emissions and investigates whether external stakeholder pressure influences the existence, and separately, the completeness of voluntary GHG emissions disclosures by 431 European companies. Design/methodology/approach – A classification of reporting completeness is developed with respect to the scope, type and reporting boundary of GHG emissions based on the guidelines of the GHG Protocol, Global Reporting Initiative and the Carbon Disclosure Project. Logistic regression analysis is applied to examine whether proxies for exposure to climate change concerns from different stakeholder groups influence the existence and/or completeness of quantitative GHG emissions disclosure. Findings – From 2005 to 2009, on average only 15 percent of companies that disclose GHG emissions report them in a manner that the authors consider complete. Results of regression analyses suggest that external stakeholder pressure is a determinant of the existence but not the completeness of emissions disclosure. Findings are consistent with stakeholder theory arguments that companies respond to external stakeholder pressure to report GHG emissions, but also with legitimacy theory claims that firms can use carbon disclosure, in this case the incomplete reporting of emissions, as a symbolic act to address legitimacy exposures. Practical implications – Bringing corporate GHG emissions disclosure in line with recommended guidelines will require either more direct stakeholder pressure or, perhaps, a mandated disclosure regime. In the meantime, users of the data will need to carefully consider the relevance of the reported data and develop the necessary competencies to detect and control for its incompleteness. A more troubling concern is that stakeholders may instead grow to accept less than complete disclosure. Originality/value – The paper represents the first large-scale empirical study into the completeness of companies’ disclosure of quantitative GHG emissions and is the first to analyze these disclosures in the context of stakeholder pressure and its relation to legitimation.

State ownership, bank loans, and corporate investment

We study the effect of bank loans on Chinese publicly listed firms' investment decisions based on the underinvestment and overinvestment theories of leverage. Evidence from China is of particular importance because China is the world's largest emerging and transitional economy. At first we show that there is a negative relationship between bank loan ratios and investment for Chinese publicly listed firms. And this negative relationship is much stronger for firms with low growth than firms with high growth. Secondly, we find that both short-term and long-term loan ratios are negatively correlated with investment. However, the higher the long-term loan ratios are, the weaker the negative relationship between long-term loan ratios and investment is. Thirdly, firm ownership only matters to the effect of short-term bank loans on investment in our sample. That is, the negative relationship between short-term loan ratios and investment is weaker for SOEs than for non-SOEs. Lastly, we show that the reform of China's banking system in 2003 has not strengthened the negative relationship between bank loans and investment. Our findings suggest that although Chinese state-owned banks are severely intervened by government policies, they still have a disciplining role on firms' investment, especially in firms with low growth.

Doing well by talking good? A topic modelling-assisted discourse study of corporate social responsibility

Using the novel technique of topic modelling, this paper examines thematic patterns and their changes over time in a large corpus of corporate social responsibility (CSR) reports produced in the oil sector. Whereas previous research on corporate communications has been small-scale or interested in selected lexical aspects and thematic categories identified ex ante, our approach allows for thematic patterns to emerge from the data. The analysis reveals a number of major trends and topic shifts pointing to changing practices of CSR. Nowadays ‘people’, ‘communities’ and ‘rights’ seem to be given more prominence, whereas ‘environmental protection’ appears to be less relevant. Using more established corpus-based methods, we subsequently explore two top phrases - ‘human rights’ and ‘climate change’ that were identified as representative of the shifting thematic patterns. Our approach strikes a balance between the purely quantitative and qualitative methodologies and offers applied linguists new ways of exploring discourse in large collections of texts.

Fatigue and workability in Brazilian textile companies in different corporate social responsibility score groups

The aim of this study was to evaluate working conditions in the textile industry for different stages of Corporate Social Responsibility (CSR) development, and workers` perception of fatigue and workability. A cross-sectional study was undertaken with 126 workers in the production areas of five Brazilian textile plants. The corporate executive officers and managers of each company provided their personal evaluations of CSR. Companies were divided into 2 groups (higher and lower) of CSR scores. Workers completed questionnaires on fatigue, workability and working conditions. Ergonomic job analysis showed similar results for working conditions, independent of their CSR score. Multivariate analysis models were developed for fatigue and workability, indicating that they are both associated to factors related to working conditions and individual workers` characteristics and life styles. Work organization, (what, how, when, where and for how long the work is done), is also an associated factor for fatigue. This study suggests that workers` opinions should be taken into greater consideration when companies develop their CSR programs, in particular for those relating to working conditions. Relevance to industry: This paper underlines the importance of considering working conditions and workers` opinions of them, work organization and individual workers` characteristics and life styles in order to restore or to maintain workability and to reduce fatigue, independently of how developed a company may be in the field of Corporate Social Responsibility. (C) 2010 Elsevier B.V. All rights reserved.

Corporate identity through graphic design

The degree project has been implemented abroad in Brisbane, Australia. A literature study has beenperformed parallel to the practical work within the subject »Corporate identity through graphicaldesign«. In this study deeper research has been made concerning the establishment and manifestationof a corporate identity and its program. The knowledge given from this study has been put into practicethrough two larger projects.The first project was carried out at De Pasquale, advertising agency in Brisbane, where a corporateidentity program was designed for a new company. The company is a fitness centre, called KnockoutFitness, which specializes in different types of boxing training sessions such as Boxing, Thai Bow andBoxercise but also Aqua aerobics. They needed a full corporate identity program including a logotype,business card, letter paper-paper and address labels.The second project was carried out at Queensland University of Technology in Brisbane. A promotioncampaign was designed for the Department of Visual Arts, which included two information folders andone advertisement. The purpose of the campaign was to promote both the undergraduate and postgraduatecourses offered within the department.

Firm relocation and firm profits : Evidence from the Swedish wholesale trade sector

This study analyses the effects of firm relocation on firm profits, using longitudinal data on Swedish limtied liability firms and employing a difference-in-differnce propensity score method in the empirical analysis. Using propensity score matching, the pre-relocalization differneces between relocating and non-relocating firms are balanced. In addition to that, a difference-in-difference estimator is employed in order to control for all time-invariant unobserved heterogeneity among firms. For matching, nearest neighbour matching, using the one-, two- and three nearest neighbours is employed. The balanacing results indicate that matching achieves a good balance, and that similar relocating and non-relocating firms are being compared. The estimated average treatment on the treatment effects indicate thats relocations has a significant effect on the profits of the relocating firms. In other words, firms taht relocate increase their profits significantly, in comparison to what the profits would be had the firms not relocated. This effect is estimated to vary between 3 to 11 percentage points, depending on the lenght of the analysed period after relocation. 

Student Thesis Level: Master’s Thesis in Business Administration Corporate Social Responsibility (CSR) networking : A case study on why members join CSR network and why are they sharing their knowledge

Purpose – This research focuses on finding the reasons, why members from different sectors join a cross-sector/multi-stakeholder CSR network and what motivates them to share (or not to share) their knowledge of CSR and their best practices. Design/methodology/approach – Semi-structured interviews were conducted with members of the largest cross-sector CSR network in Sweden. The sample base of 15 people was chosen to be able to represent a wider variety of members from each participating sectors. As well as the CEO of the intermediary organization was interviewed. The interviews were conducted via email and telephone. Findings – The findings include several reasons linked to the business case of CSR such as stakeholder pressure, competitive advantage, legitimacy and reputation as well as new reasons like the importance of CSR, and the access of further knowledge in the field. Further reasons are in line with members wanting to join a network, such as access to contact or having personal contacts. As to why members are sharing their CSR knowledge, the findings indicate to inspire others, to show CSR commitment, to be visible, it leads to business opportunity and the access of others knowledge, and because it was requested. Reasons for not sharing their knowledge would be the lack of opportunity, lack of time and the lack of experience to do so. Originality/value – The research contributes to existing studies, which focused on Corporate Social Responsibility and cross-sector networking as well as to inter-organizational knowledge sharing in the field of CSR.

The Determinants of Recovery Rates on Defaulted Corporate Securities: Why do Fallen Angels recover more than Original High Yield Issues?

Regression analysis has shown that recovery rates are determined by a variety of conditions at the time of default. These conditions can be broken into five major categories: (1) a security's seniority within the capital structure of the defaulting firm, (2) the type of default event, (3) firm-specific factors, (4) industry-specific factors, and (5) macroeconomic factors. Expectations of these inputs determine the expected recovery rate if default were to occur, thereby determining credit ratings and security prices. Although it is widely understood how recovery rate estimates influence credit rating assignments (the higher the expected recovery rate, the higher the assigned credit rating), no research, to the best of my knowledge, has investigated the reasons why higher rated securities recover more than lower rated securities in the event of default. Specifically, this paper will empirically investigate why securities originally rated investment grade, fallen angels, recover more than securities originally rated high yield in the event of default.

Corporate capital structure revisited: incomplete markets and default

After Modigliani and Miller (1958) presented their capital structure irrelevance proposition, analysis of corporate Önancing choices involving debt and equity instruments have generally followed two trends in the literature, where models either incorporate informational asymmetries or introduce tax beneÖts in order to explain optimal capital structure determination (Myers, 2002). None of these features is present in this paper, which develops an asset pricing model with the purpose of providing a positive theory of corporate capital structure by replicating main aspects of standard contractual practice observed in real markets. Alternatively, the imperfect market structure of the economy is tailored to match what is most common in corporate reality. Allowance for default on corporate debt with an associated penalty of seizure of Örmís future cash áows by creditors is introduced, for instance. In this context, a qualitative assessment of Önancial managersídecisions is carried out through numerical procedures.

Essays on asymmetric information problems without the single-crossing property: applications to corporate finance

The objective of this dissertation is to re-examine classical issues in corporate finance, applying a new analytical tool. The single-crossing property, also called Spence-irrlees condition, is not required in the models developed here. This property has been a standard assumption in adverse selection and signaling models developed so far. The classical papers by Guesnerie and Laffont (1984) and Riley (1979) assume it. In the simplest case, for a consumer with a privately known taste, the single-crossing property states that the marginal utility of a good is monotone with respect to the taste. This assumption has an important consequence to the result of the model: the relationship between the private parameter and the quantity of the good assigned to the agent is monotone. While single crossing is a reasonable property for the utility of an ordinary consumer, this property is frequently absent in the objective function of the agents for more elaborate models. The lack of a characterization for the non-single crossing context has hindered the exploration of models that generate objective functions without this property. The first work that characterizes the optimal contract without the single-crossing property is Araújo and Moreira (2001a) and, for the competitive case, Araújo and Moreira (2001b). The main implication is that a partial separation of types may be observed. Two sets of disconnected types of agents may choose the same contract, in adverse selection problems, or signal with the same levei of signal, in signaling models.

Um Estudo sobre a avaliação da condução do processo de parcerias - o caso Telemar Corporate

The partnerships have become the subject of study as an innovative element in the production management and a strategic option in the entrepreneurial activities that characterize this momentum of great instability due to the globalization of the financial dimension and the opening of captive markets all over the world.The objective of this research was to investigate and evaluate the in-fluence and relevance of the factor process approach among the other critical factors identified for the strategic management of partnerships. In view of the service offer of Telecommunications, mainly in the Case Study of Telemar Corporate, that belongs to the Tele Norte Leste Group S.A. (Telemar) responsible for rendering services to the corporate market. A research was performed in the Diretoria de Produtos Empresariais - DPE, a unit of the Telemar Corporate, analyzing these critical factors in 3 clusters related to the constitution of part-nerships: the definition of the strategic objectives, the quality of the human re-sources applied and the management of the partnership processes. The Theoretical Reference contributed to the definition of contemporary concepts on the management and the classification of the partnerships as well as the identification of the critical factors. The research was methodological and exploratory, using in this Case Study the field search through the employment of interviews and questionnaires in a selected sample. It was possible to identify that among the more relevant critical factors the process approach, is the most influential and relevant for the management of the partnerships at Telemar Corporate. It is succeeded by other factors equally important, such as the definition of objectives and the strategic intention that confirms the initial hypothesis of this study.