The development of faith-based funds and socially r esponsible funds challenges modern portfolio ... more The development of faith-based funds and socially r esponsible funds challenges modern portfolio theory as some investors move away from t he risk-return paradigm by constraining their portfolios to “ethical” investments. This typ e of investment attempts to balance the regard for morality of a firm’s activities and the regard for return on investment. Such ethical investors will shun companies whose behaviours they condemn, or focus on companies that represent values in which they believe. Hence, in addition to maximizing return and/or minimizing risk, they integrate non-pecuniary preferences in their i nvestment decisions (Gillet 2009). Ethical investments include a wide range of mutual funds, u nit trusts and equity indices that can be classified into socially responsible investment (fo llowing so-called Environmental, Social and Governance criteria) and faith-based investment (fo llowing for instance Christian or Islamic principles). Socially responsible and Islamic funds have g...
This paper is the first to examine the effects of international bank mergers and acquisitions on ... more This paper is the first to examine the effects of international bank mergers and acquisitions on acquirers' contribution to systemic risk covering the period from 1998 to 2015. Our sample consists of 608 international bank mergers, involved domestic and cross-border deals as well as conglomerate and non-conglomerate mergers. Using the Marginal Expected Shortfall (as in Acharya et al., 2017) as well as Conditional Value-at-Risk (as in Adrian and Brunnermeier, 2016) as systemic risk measurements, we find that on average, mergers do not impact on the acquiring banks’ contribution to systemic risk regardless of the increased potential for risk diversification exhibited by cross-border and cross-industry bank mergers. Determinants that contributes to the decrease in acquirers’ systemic risk include product diversifying deals, deals conducted in a more concentrated banking system and a stable political environment. Whereas, for deals financed by cash only and much smaller compared to ...
Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cro... more Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cross-border acquisitions is significantly affected by the Eurozone and the euro debt crisis. First, due to financial market integration and the elimination of exchange rate risk, intra-Eurozone acquisitions do not earn any abnormal returns for bidders. Second, as a result of the euro debt crisis and the temporary misvaluation among European countries, acquisitions earn positive abnormal returns only for non-Eurozone companies acquiring Eurozone targets. These abnormal returns are driven by the depreciation of the euro and the use of low-cost capital available to overvalued acquirers.
This paper mitigates previous evidence of out-performance of sin stocks-stocks of companies invol... more This paper mitigates previous evidence of out-performance of sin stocks-stocks of companies involved in producing tobacco, alcohol and gaming-on the U.S. market. It has been shown empirically that sin stocks earn an abnormal risk-adjusted return compared to industries with similar characteristics. Based on a conditional analysis accounting for different business conditions, I invalidate this hypothesis by first testing a conditional model using different macroeconomic variables and second by looking at earnings growth over expansion and recession periods. Thus, even though sin stocks are unique because of the addictive nature of sin consumption, they are only as recession-proof as some other industry-comparable stocks. However, I find evidence that sin stocks still outperform the overall market during bad times, meaning that socially responsible investors pay a financial cost when avoiding these stocks because of social and ethical criteria.
... 1 CROSS-BORDER EFFECT AND INVESTOR EUPHORIA: PERFORMANCE OF INTERNATIONAL ACQUISITIONS FROM I... more ... 1 CROSS-BORDER EFFECT AND INVESTOR EUPHORIA: PERFORMANCE OF INTERNATIONAL ACQUISITIONS FROM INDIAN COMPANIES Julie Salaber ... associated with a significant firm discount (Denis, Denis and Yost 2002; Moeller and Schlingemann 2005). ...
Using European and US data over the period 1990-2010 we study the stock marketconsumer confidence... more Using European and US data over the period 1990-2010 we study the stock marketconsumer confidence relationship (SM-CC). We argue that if consumers use stock markets to predict future economic conditions the SM-CC relationship should be weaker during stock market declines which are not followed by economic turbulences. We use the post Dot-Com stock market crash and the stock market crash of the Financial Crisis to test our hypothesis. In contrast with the literature on financial illiteracy of consumers we find that consumers correctly interpret stock market meltdowns. We also find a strong information effect, i.e., stock markets indirectly impact on consumers' expectations of household finances. This contrasts with previous studies which find that the information effect is weak or non-existent.
Newcastle University ePrints-eprint.ncl.ac.uk Rao-Nicholson R, Salaber J. Impact of the financial... more Newcastle University ePrints-eprint.ncl.ac.uk Rao-Nicholson R, Salaber J. Impact of the financial crisis on cross-border mergers and acquisitions and concentration in the global banking industry.
Cette these s’interesse a la rentabilite et au risque des actions du peche (actions de compagnies... more Cette these s’interesse a la rentabilite et au risque des actions du peche (actions de compagnies presentes dans les secteurs du tabac, de l’alcool et des jeux) et a l’impact de la consommation de ces produits sur l’evaluation d’actifs. Les actions du vice presentent des rentabilites anormales, apres prise en compte du risque de marche et des styles de gestion classiques. A travers l’etude de differents pays et l’utilisation de plusieurs modeles d’evaluation, nous sommes capables de mettre en evidence de nouveaux determinants a la performance de ces actions, en fonction de l’environnement des entreprises. Premierement, il existe des facteurs de risque, specifiques aux entreprises du vice, qui sont valorises sur le marche europeen : le risque de litige et le risque de hausse des taxes d’accise. Deuxiemement, les entreprises du vice aux Etats-Unis enregistrent des rentabilites ajustees au risque seulement en periode de recession, grâce a une croissance de leurs benefices plus elevee que la moyenne. Enfin, l’environnement religieux des investisseurs a un impact sur la rentabilite des actions du peche, dans le sens ou les protestants sont plus « adverses au peche » que les catholiques et sont donc plus enclins a negliger ces entreprises. Tous ces facteurs sont lies au caractere de dependance de la consommation d’alcool, de tabac et de jeux et nous montrons que cette dependance a un effet non seulement sur l’evaluation des actions du vice mais egalement sur l’evaluation des actifs en general. Nous pouvons en effet expliquer le faible pouvoir predictif du Medaf consommation ainsi que le paradoxe de la prime de risque grâce a la stabilite de la consommation addictive.
Handbook of Research on Integrating Social Media into Strategic Marketing, 2015
The constant rise in tuition fees has created increasing pressure for British universities to aug... more The constant rise in tuition fees has created increasing pressure for British universities to augment the range of marketing tools used to attract students in competition with both domestic and overseas institutions. This chapter investigates the role of social media as a communication and marketing tool for Higher Education Institutions in the UK. Social media is a powerful tool for both direct and indirect marketing, and is highly relevant for universities targeting youngsters who belong to the so-called Generation Y. After presenting the background for social media marketing and higher education, we investigate whether the use of social media as a marketing tool has been effective in raising awareness of British universities. To do so, we collect data on the use of social media by HEIs (in the UK and in the USA for comparison), as well as data on students' response to these new marketing strategies. Unlike many other organisations, it seems that social media play a positive role in promoting British Universities, although the evidence suggests that they still tend to use social media too much like more traditional forms of marketing and PR.
Research in International Business and Finance, 2015
The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A p... more The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A performance using data from 2001 to 2012. The industry-adjusted operating performance tends to decline in the 3 years following an M&A. Yet, the results suggest that M&As completed during the financial crisis are more profitable than those implemented before and/or after the crisis. We argue that this is mainly due to the synergies created between the firms' resources during the crisis which augur well for firms' economic performance. We find that, during the crisis, certain characteristics of the firms like the relative size of the target, cross-border nature of deals, acquirer's cash reserves and friendly nature of deals are important determinants of long-term post-M&A operating performance. However, for M&As during the crisis, there appears to be no relationship between performance and firms' characteristics linked to M&A activity such as payment method, industry relatedness and percentage of target's share acquired.
International Journal of the Economics of Business, 2014
This paper examines the influence of the 2007-08 financial crisis on value creation for acquirer'... more This paper examines the influence of the 2007-08 financial crisis on value creation for acquirer's shareholders in the banking industry using a sample of 883 deals over 2004-12. Applying an exploratory and top-down approach, we look at banking acquisitions at the global level, narrowing our analysis step-by-step to consider domestic versus cross-border acquisitions, and then split cross-border deals based on the economic development of the acquirer and target countries. We observe that only acquisitions involving emerging-economy acquirers and developed-economy targets generate positive and significant returns to shareholders after the crisis. We also observe major changes in the global acquisition landscape since 2007 with emerging-economy banks increasing their acquisition activity, both nationally and internationally.
Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cro... more Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cross-border acquisitions is significantly affected by the Eurozone and the euro debt crisis. First, du...
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License New... more This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License Newcastle University ePrints-eprint.ncl.ac.uk
The International Journal of Management Education, 2014
This paper investigates the impact of wiki-based activities on student participation and collabor... more This paper investigates the impact of wiki-based activities on student participation and collaborative learning in a large postgraduate international management course. The wiki was used in this study as a facilitator for engagement and collaboration rather than a means of online discussions. Based on both qualitative and quantitative data, we find strong evidence that the use of the wiki facilitated student engagement and collaboration, both inside and outside the classroom. Moreover, student learning had significantly improved as a result of the enhanced learning environment.
During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economie... more During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Crossborder acquisitions conducted by these countries' companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000-2010 and our results hold after controlling for various deal-level and firm-level characteristics.
The development of faith-based funds and socially r esponsible funds challenges modern portfolio ... more The development of faith-based funds and socially r esponsible funds challenges modern portfolio theory as some investors move away from t he risk-return paradigm by constraining their portfolios to “ethical” investments. This typ e of investment attempts to balance the regard for morality of a firm’s activities and the regard for return on investment. Such ethical investors will shun companies whose behaviours they condemn, or focus on companies that represent values in which they believe. Hence, in addition to maximizing return and/or minimizing risk, they integrate non-pecuniary preferences in their i nvestment decisions (Gillet 2009). Ethical investments include a wide range of mutual funds, u nit trusts and equity indices that can be classified into socially responsible investment (fo llowing so-called Environmental, Social and Governance criteria) and faith-based investment (fo llowing for instance Christian or Islamic principles). Socially responsible and Islamic funds have g...
This paper is the first to examine the effects of international bank mergers and acquisitions on ... more This paper is the first to examine the effects of international bank mergers and acquisitions on acquirers' contribution to systemic risk covering the period from 1998 to 2015. Our sample consists of 608 international bank mergers, involved domestic and cross-border deals as well as conglomerate and non-conglomerate mergers. Using the Marginal Expected Shortfall (as in Acharya et al., 2017) as well as Conditional Value-at-Risk (as in Adrian and Brunnermeier, 2016) as systemic risk measurements, we find that on average, mergers do not impact on the acquiring banks’ contribution to systemic risk regardless of the increased potential for risk diversification exhibited by cross-border and cross-industry bank mergers. Determinants that contributes to the decrease in acquirers’ systemic risk include product diversifying deals, deals conducted in a more concentrated banking system and a stable political environment. Whereas, for deals financed by cash only and much smaller compared to ...
Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cro... more Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cross-border acquisitions is significantly affected by the Eurozone and the euro debt crisis. First, due to financial market integration and the elimination of exchange rate risk, intra-Eurozone acquisitions do not earn any abnormal returns for bidders. Second, as a result of the euro debt crisis and the temporary misvaluation among European countries, acquisitions earn positive abnormal returns only for non-Eurozone companies acquiring Eurozone targets. These abnormal returns are driven by the depreciation of the euro and the use of low-cost capital available to overvalued acquirers.
This paper mitigates previous evidence of out-performance of sin stocks-stocks of companies invol... more This paper mitigates previous evidence of out-performance of sin stocks-stocks of companies involved in producing tobacco, alcohol and gaming-on the U.S. market. It has been shown empirically that sin stocks earn an abnormal risk-adjusted return compared to industries with similar characteristics. Based on a conditional analysis accounting for different business conditions, I invalidate this hypothesis by first testing a conditional model using different macroeconomic variables and second by looking at earnings growth over expansion and recession periods. Thus, even though sin stocks are unique because of the addictive nature of sin consumption, they are only as recession-proof as some other industry-comparable stocks. However, I find evidence that sin stocks still outperform the overall market during bad times, meaning that socially responsible investors pay a financial cost when avoiding these stocks because of social and ethical criteria.
... 1 CROSS-BORDER EFFECT AND INVESTOR EUPHORIA: PERFORMANCE OF INTERNATIONAL ACQUISITIONS FROM I... more ... 1 CROSS-BORDER EFFECT AND INVESTOR EUPHORIA: PERFORMANCE OF INTERNATIONAL ACQUISITIONS FROM INDIAN COMPANIES Julie Salaber ... associated with a significant firm discount (Denis, Denis and Yost 2002; Moeller and Schlingemann 2005). ...
Using European and US data over the period 1990-2010 we study the stock marketconsumer confidence... more Using European and US data over the period 1990-2010 we study the stock marketconsumer confidence relationship (SM-CC). We argue that if consumers use stock markets to predict future economic conditions the SM-CC relationship should be weaker during stock market declines which are not followed by economic turbulences. We use the post Dot-Com stock market crash and the stock market crash of the Financial Crisis to test our hypothesis. In contrast with the literature on financial illiteracy of consumers we find that consumers correctly interpret stock market meltdowns. We also find a strong information effect, i.e., stock markets indirectly impact on consumers' expectations of household finances. This contrasts with previous studies which find that the information effect is weak or non-existent.
Newcastle University ePrints-eprint.ncl.ac.uk Rao-Nicholson R, Salaber J. Impact of the financial... more Newcastle University ePrints-eprint.ncl.ac.uk Rao-Nicholson R, Salaber J. Impact of the financial crisis on cross-border mergers and acquisitions and concentration in the global banking industry.
Cette these s’interesse a la rentabilite et au risque des actions du peche (actions de compagnies... more Cette these s’interesse a la rentabilite et au risque des actions du peche (actions de compagnies presentes dans les secteurs du tabac, de l’alcool et des jeux) et a l’impact de la consommation de ces produits sur l’evaluation d’actifs. Les actions du vice presentent des rentabilites anormales, apres prise en compte du risque de marche et des styles de gestion classiques. A travers l’etude de differents pays et l’utilisation de plusieurs modeles d’evaluation, nous sommes capables de mettre en evidence de nouveaux determinants a la performance de ces actions, en fonction de l’environnement des entreprises. Premierement, il existe des facteurs de risque, specifiques aux entreprises du vice, qui sont valorises sur le marche europeen : le risque de litige et le risque de hausse des taxes d’accise. Deuxiemement, les entreprises du vice aux Etats-Unis enregistrent des rentabilites ajustees au risque seulement en periode de recession, grâce a une croissance de leurs benefices plus elevee que la moyenne. Enfin, l’environnement religieux des investisseurs a un impact sur la rentabilite des actions du peche, dans le sens ou les protestants sont plus « adverses au peche » que les catholiques et sont donc plus enclins a negliger ces entreprises. Tous ces facteurs sont lies au caractere de dependance de la consommation d’alcool, de tabac et de jeux et nous montrons que cette dependance a un effet non seulement sur l’evaluation des actions du vice mais egalement sur l’evaluation des actifs en general. Nous pouvons en effet expliquer le faible pouvoir predictif du Medaf consommation ainsi que le paradoxe de la prime de risque grâce a la stabilite de la consommation addictive.
Handbook of Research on Integrating Social Media into Strategic Marketing, 2015
The constant rise in tuition fees has created increasing pressure for British universities to aug... more The constant rise in tuition fees has created increasing pressure for British universities to augment the range of marketing tools used to attract students in competition with both domestic and overseas institutions. This chapter investigates the role of social media as a communication and marketing tool for Higher Education Institutions in the UK. Social media is a powerful tool for both direct and indirect marketing, and is highly relevant for universities targeting youngsters who belong to the so-called Generation Y. After presenting the background for social media marketing and higher education, we investigate whether the use of social media as a marketing tool has been effective in raising awareness of British universities. To do so, we collect data on the use of social media by HEIs (in the UK and in the USA for comparison), as well as data on students' response to these new marketing strategies. Unlike many other organisations, it seems that social media play a positive role in promoting British Universities, although the evidence suggests that they still tend to use social media too much like more traditional forms of marketing and PR.
Research in International Business and Finance, 2015
The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A p... more The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A performance using data from 2001 to 2012. The industry-adjusted operating performance tends to decline in the 3 years following an M&A. Yet, the results suggest that M&As completed during the financial crisis are more profitable than those implemented before and/or after the crisis. We argue that this is mainly due to the synergies created between the firms' resources during the crisis which augur well for firms' economic performance. We find that, during the crisis, certain characteristics of the firms like the relative size of the target, cross-border nature of deals, acquirer's cash reserves and friendly nature of deals are important determinants of long-term post-M&A operating performance. However, for M&As during the crisis, there appears to be no relationship between performance and firms' characteristics linked to M&A activity such as payment method, industry relatedness and percentage of target's share acquired.
International Journal of the Economics of Business, 2014
This paper examines the influence of the 2007-08 financial crisis on value creation for acquirer'... more This paper examines the influence of the 2007-08 financial crisis on value creation for acquirer's shareholders in the banking industry using a sample of 883 deals over 2004-12. Applying an exploratory and top-down approach, we look at banking acquisitions at the global level, narrowing our analysis step-by-step to consider domestic versus cross-border acquisitions, and then split cross-border deals based on the economic development of the acquirer and target countries. We observe that only acquisitions involving emerging-economy acquirers and developed-economy targets generate positive and significant returns to shareholders after the crisis. We also observe major changes in the global acquisition landscape since 2007 with emerging-economy banks increasing their acquisition activity, both nationally and internationally.
Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cro... more Using a sample of 1,263 European acquisitions over 2004-2012, we show that the performance of cross-border acquisitions is significantly affected by the Eurozone and the euro debt crisis. First, du...
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License New... more This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License Newcastle University ePrints-eprint.ncl.ac.uk
The International Journal of Management Education, 2014
This paper investigates the impact of wiki-based activities on student participation and collabor... more This paper investigates the impact of wiki-based activities on student participation and collaborative learning in a large postgraduate international management course. The wiki was used in this study as a facilitator for engagement and collaboration rather than a means of online discussions. Based on both qualitative and quantitative data, we find strong evidence that the use of the wiki facilitated student engagement and collaboration, both inside and outside the classroom. Moreover, student learning had significantly improved as a result of the enhanced learning environment.
During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economie... more During the recent decade, the world has witnessed the rapid growth of MNEs from emerging economies. Their increasing participation in cross-border mergers and acquisitions has raised great attention in the extant literature. This study evaluates the value creation from these cross-border transactions from two representative emerging countries, namely China and India, and determines factors that result in the different performance of these international acquisition activities. Crossborder acquisitions conducted by these countries' companies indeed lead to significant shareholder wealth creation. Furthermore, Indian shareholders are more likely to benefit from deals in small cultural distance countries, while Chinese investors gain from the cross-border expansion of manufacturing companies. Location also affects the performance of cross-border acquisitions, with acquisitions into developed countries generating higher returns to shareholders. Our sample consists of 203 Indian and 63 Chinese cross-border deals over the period 2000-2010 and our results hold after controlling for various deal-level and firm-level characteristics.
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