French Corporate Research Articles

Influence of EU measures in improving gender balance on French corporate board of directors

Influence of EU measures in improving gender balance on French corporate board of directors

Acquisition of Mexican SME’s, its Impact on Organizational Culture and Structure: The Case of Glass and Plastic México

In this paper, the case of glass and plastic Mexico, Guadalajara’s company that was recently acquired by the French corporate Essilor through Essilor Mexico will be addressed. Essilor’s strategy of further expanding economies of scope, with glass and plastic as optical laboratory, corporate through its new acquisition achieved distribute products from other brands to market where so far could not reach. For the company Glass and plastic Mexico, the practice represents an opportunity for growth and stability; however, the acquisition led to major changes in the organizational structure, as the implementation of controls and processes in the small business, glass and plastic Mexico had not.

Equality Regimes Compared: France's Political and Corporate Quotas

This article differentiates parity, the French political quota from the French Corporate Board Quota. Further, the article articulates how an examination of political quotas after the corporate board quota was passed could be beneficial in reexamining and reformatting political quotas. Both share the goal of increasing representation of women. The French political quota preceded the Corporate Board Quota and was relatively unsuccessful, which may have led to the difference in the implementation of the Corporate Board Quota. The paper concludes that the Corporate Board Quotas is both more modest and stronger than the political board quotas. More modest because the focus of the remedy is on the board and not the executive committee, which is a less powerful institution within the corporate governance structure. The Corporate Board Quota is stronger because they mandate seats and not merely candidacies. There are advantages to the focus within the corporate context of different sites of governance and different ways to affect governance which suggest other mechanisms for political equality regimes.

Political depression and working practices in recent French cinema

This article will address the concept of political depression, as defined by Anne Cvetkovich in her 2012 work Depression: A Public Feeling. Drawing comparisons between Cvetkovich and the more extended interrogation of capitalist working practices in the sociology of Alain Ehrenberg, the article will then explore how recent French film depictions of the workplace have created representations of loss that can be construed as images of political depression. These include a parallel (established in one of the chosen films and in the wider discourse) between French corporate working practices and the Holocaust. The films under analysis are Laurent Cantet’s Ressources humaines (1999) and L’Emploi du temps (2001), along with Nicolas Klotz’s La Question humaine (2007).

Does The Glass Ceiling Exist? A Longitudinal Study Of Womens Progress On French Corporate Boards

n this article, we conduct a longitudinal study of womens progress on French corporate boards of directors. We particularly focus on the extent to which women directors have circumvented the glass ceiling. Using a sample of SBF 120 companies over a 10-year period from 2000 to 2009, our results provide evidence of a significant increase in the number of women on French corporate boards. However, the corporate glass ceiling hypothesis is consistently rejected whatever the considered measure of female directors; i.e., the number of board seats held by women, the number of firms with a critical mass of female directors, and the number of directorships held by each women director.

Retour sur le champ du pouvoir économique en France

Trente-cinq ans après l’article de Bourdieu et Saint Martin sur « Le patronat », notre article se propose de revenir sur le champ du pouvoir économique en France à partir de 838 dirigeants des entreprises composant l’indice CAC 40 en 2009. Reprenant la méthode de l’analyse des correspondances multiples, notre étude met au jour une structure du champ qui oppose dirigeants issus de l’État et dirigeants étrangers, avec au centre les dirigeants français non passés par l’État. Plus que des types de capitalisme, notre analyse souligne la force des tropismes nationaux (titres et trajectoires liés à l’État français, passage par les grandes écoles), au moment où s’affirme l’effacement du capitalisme familial et une forte ouverture à l’international.

Women On French Corporate Board Of Directors: How Do They Differ From Their Male Counterparts?

Our research aims at exploring individuals characteristics of women on Boards in the French context. In the first part of our paper, we discuss the different theoretical frameworks which supported the business case of gender diversity on Boards of Directors and expose our hypothesis regarding differences in women and men characteristics. The second part presents our methods, measurements and data. Then, we focus on our empirical study. Our sample consists of the French Index SBF 120 companies. We studied the profile of 1,250 directors collecting information from the firms annual reports of year 2010, using various scales defined by previous research on that field in the AngloSaxon literature. Our findings confirm that integrating women on boards has an impact on the Human and Social Capital of Boards but not as much as might have been expected. It is worth noting that men and women board members seem to build their human and social capital through the same educational process in France. Nonetheless, our work shows significant differences between men and women regarding professional experience and board member status.

Pathways to Power: Class, Hyper-Agency and the French Corporate Elite

This paper explores pathways to power from the perspective of the French corporate elite. It compares those who enter the ‘field of power’ with those who fail to reach this final tier. Adopting an innovative econometric approach, we develop and test three hypotheses. These underline the pivotal role of external networks and the strategic advantage of hyper-agency in maintaining power; and indicate that social origin remains a powerful driver in determining success. Birthright and meritocracy emerge as two competing institutional logics which influence life chances. Higher-status agents benefit from mutual recognition which enhances their likelihood of co-option to the extra-corporate networks that facilitate hyper-agency. The objectification of class-based differences conceals their arbitrary nature while institutionalizing the principles informing stratification. We re-connect class analysis with organizational theory, arguing that social origin exerts an enduring influence on selection dynamics which inform processes of hierarchical reproduction in the corporate elite and society at large.

The Effects of Different Owner Categories on Corporate Internationalization

We examine how ownership influences a firm’s internationalization strategies. We propose that owners’ type and normative beliefs about corporations’ objectives in their country of origin determine owners’ position vis-à-vis firm internationalization. In a panel of publicly-traded French corporations, we find that domestic state and corporate ownership increase commercial internationalization and international diversification. Furthermore, domestic state and institutional ownership, as well as foreign (specifically, originating from the U.S. and the U.K.) bank/insurance and corporate ownership, favor internationalization aiming to reduce firm risk, whereas U.S./U.K. institutional ownership has the opposite effect.

Has the French 3% Contribution Become Compatible with EU Law and Tax Treaties?

As a first act of tax legislation under the presidency of François Hollande, the French government introduced an additional contribution to the French corporate income tax (CIT) equaling 3% of profit distributions and profit repatriations made by companies subject to French CIT. The contribution first applied on profit distributions and profit repatriations made on or after 17 August 2012. Given the economic similarity of the contribution to a regular dividend withholding tax, one can question the compatibility of the contribution with primary and secondary European Union (EU) law and French tax treaties. On 10 April 2013, the French Tax Authorities issued official guidelines, limiting the scope of the contribution. But did this limitation sufficiently address all doubts one can have about compatibility of the contribution with EU law and French tax treaties? One year after its introduction, the authors still find reason to shed a critical light on the contribution.

The profits of power: Commerce and realpolitik in Eurasia

ABSTRACT Although the energy trade is the single most important element of nearly all European countries’ relations with Russia, Europe has been divided by both worldview and practice. Why, in the face of the common challenge of dependence on imported Russian gas, have national reactions to such vulnerability varied so dramatically across the continent? And why have a handful of French, German, and Italian corporations somehow taken responsibility for formulating the energy strategy – and thus the Russia policy – for essentially all of Europe? The resolutions of these two puzzles are, I show, interlinked; they also demand theoretical innovation. With several case studies – of Gazprom's decision-making during the 2006 and 2009 gas crises, and of the response of western and central Europe to their gas dependence – I find that: firms are driving these political outcomes; those firms are motivated by profits but employ sociological conventions along their ways; and firms generally seek the necessary inter-firm, cross-border cooperation that will deliver corporate performance. Finally, I conclude that the field will ultimately require a framework that puts firms at its center.

Impact of Ownership Structure on Debt Equity Ratio: A Static and a Dynamic Analytical Framework

This study examines the determinants of capital structure as part of the agency theory. French corporate structure with its high corporate concentration provides able us to analyze how ownership structure affects debt policy. Emphasis is placed on the role of insiders and outsiders ownership in explaining the debt ratio. The empirical study examined a sample of French companies listed on SBF 250 index and observed over the period 1997-2007. Test results show a non linear relationship between managerial ownership and capital structure. Outside shareholdings do not play a disciplinary role to effectively control the behavior of managers in a static framework. However, for high levels of managerial ownership, outside shareholdings does not significantly affect debt ratio. In addition, in a dynamic framework, we document a negative and a significant effect of external investors on debt equity ratio. Furthermore, the effect of management ownership is not significant.

Capitalization of energy efficiency on corporate real estate portfolio value

Purpose – The purpose of this paper is to investigate whether energy efficiency is capitalized in rent and asset value on corporate real estate portfolio. This approach contributes to the research on “green buildings” by using hedonic regression modeling on a portfolio of existing buildings in the French corporate real estate context.Design/methodology/approach – The authors apply hedonic methods on a French corporate real estate portfolio which is composed of industrial, commercial and office buildings.Findings – This model emphasizes two main results: energy efficiency is more capitalized in rent than in asset value and this relationship differs regarding buildings' type.Originality/value – The model suggests that premium for energy efficiency is stronger for commercial and office buildings than for industrial buildings.

Beliefs on “avoidant cultures” in two French multinational corporations

PurposeThe purpose of this paper is to examine the trajectory of cultural stereotypes on Uncertainty Avoidance emergent from two French multinational corporations. The exploration of respondents' comparisons of their own culture with other cultures illustrates that cultural stereotypes are derived from structural conditions that had developed over time, but came to be (mis)attributed to innate and prevalent cultural habits.Design/methodology/approachData were collected from both primary and secondary sources, characterized by qualitative methodologies. Primary data respondents were predominantly ethnic Chinese Singaporeans, and secondary data respondents were predominantly French. In‐depth interviews were introduced in three phases.FindingsThe stereotype of the “uncertainty avoidant” Chinese Singaporean employees was employed by the top manager in one of the case studies (ECI) to lend legitimacy to the employees' exclusion from top management positions. The converse argument was made that “uncertainty avoidance” is absent among the French, who are hence more qualified as ECI top managers. Both claims were unfounded in this inquiry. Further evidence points to structural factors mediating employee behavior.Research limitations/implicationsStructural factors were found to lend greater credibility in accounting for employee behaviors outlined in this study, more so than cultural ones. Future research surfacing complementary statistical insights will provide more concrete and representative evidence to this exploratory inquiry.Originality/valueAn alternative view of Uncertainty Avoidance through a structural account is proposed, based on evidence from qualitative inquiries.

Does good governance prevent bad strategy? A study of corporate governance, financial diversification, and value creation by French corporations, 2000–2006

Building on and extending prior research, we propose a comprehensive framework which posits that free cash flow moderates the impact of corporate governance on financial diversification. We argue that because it increasesCEOperceived risk, alignment devices increase rather than decrease financial diversification. In a sample of 59 publicly traded French corporations during 2000–2006, we show that financial diversification negatively impacts shareholder return and firm value. We obtain support for several of our hypotheses: at high levels of free cash flow,CEOvariable compensation increases financial diversification, whereas chairman/CEOnon‐duality reduces it. In contrast, independent directors increase financial diversification at low values of free cash flow (although weakly). We also find that ownership concentration only reduces financial diversification when free cash flow is low.Copyright © 2012 John Wiley & Sons, Ltd.

The New French 3% Withholding Tax on Profit Distributions: A Minefield for the French Government

In this note, the author discusses the new French corporate income tax surcharge, which was introduced as a response to the abolition of the French withholding tax on outbound dividends paid to non-resident UCITS. In particular, the note discusses the rules of the surcharge, various loopholes and discrepancies in regard to the provision and its compatibility with EU law.

Nonprofit Roles in For-Profit Firms: The Institutionalization of Corporate Philanthropy in France

In this research project we aim to understand the role of institutional entrepreneurship across multiple levels – field, organization, and micro levels – in the institutionalization of a new professional role within organizations. Specifically, we study the rise of the corporate philanthropy manager, a position inspired by nonprofit values and goals which developed within large French corporations during the period 1979 to 2011. The process of creating, maintaining and legitimizing this new role – philanthropy as a new business function – is the central focus of our study, and we explore how elements of the nonprofit and for-profit worlds came together in this new role, as well as the role of various actors across multiple levels in influencing this combination.

Nonprofit Roles in For-profit Firms: The Institutionalization of Corporate Philanthropy in France

In this research project we aim to understand the role of institutional entrepreneurship across multiple levels - field, organization, and micro levels - in the institutionalization of a new professional role within organizations. Specifically, we study the rise of the corporate philanthropy manager, a position inspired by nonprofit values and goals which developed within large French corporations during the period 1979 to 2011. The process of creating, maintaining and legitimizing this new role - philanthropy as a new business function - is the central focus of our study, and we explore how elements of the nonprofit and for-profit worlds came together in this new role, as well as the role of various actors across multiple levels in influencing this combination.

French multinational companies, new state regulations and changes in the employment relationship during the crisis

On the basis of a survey conducted in three French multinational corporations in the automobile industry that have set up production facilities in central and eastern Europe, this article examines some of the major changes in the employment relationship that have taken place in the rather specific economic context of the second half of the decade after 2000. Two main propositions are put forward and discussed: the first relates to the rise of a ‘management-led social dialogue’ as the outcome of an increasingly close meshing of corporate industrial strategies, human resource policies and the management of industrial relations at the local level; the second relates to the emergence of a ‘Porterian state’ playing a role of, on the one hand, mediator in the effort to build some ‘labour-management compromises’ for coping with the crisis and, on the other hand, promoter of new forms of socio-economic regulation requiring new institutional complementarities. The analysis, developed on the basis of a comparative approach – i.e. France versus the central and eastern European countries – is rounded off by an examination of the place and role of the European Union in these changes.

Sources of Franco-German corporate support for the euro: The effects of business network centrality and political connections

During the euro crisis of June 2011, 51 representatives of major French and German corporations launched a political campaign in support of the euro. This study shows that firm size facilitated high-quality business contacts but that variables of economic interest were not associated with a higher probability of campaign participation when controlling for relational variables. Instead, the empirical analysis suggests that Franco-German business leaders joined the campaign because (1) their central network position provided them with informational resources to transcend the interest of their firm, and (2) their social and political embeddedness either led to an internalization of pro-euro values or gave them an incentive to improve their long-term reputation with political decision makers who strongly support the euro as part of the European integration project. Thus, the directors’ corporate and political ties facilitated and motivated corporate political action in support of the euro.