Annual net income is seen by shareholders as the most important figure, since it is, for individual accounts, the basis of appropriation of profit by the shareholders' general meeting. However, firms publish interim figures at a higher frequency to allow investors to react quickly to frequently updated information that gives them a more accurate view of the evolution of the firm. In the United States, according to regulation S-X, the interim quarterly reports must disclose the net income. In France, firms must publish their quarterly turnovers and their half-year income statements in addition to their annual accounts. Whereas American publications are practically homogeneous in nature in terms of earnings disclosure, the information content of French quarterly reports differs from that of the half-year and annual accounts. Such French irregularities in information content mean that interim and annual announcements do not have the same value for the shareholders. Because of the heterogeneous nature and the time frame of the disclosed information, one may wonder if French market reactions to the announcements of interim publications exhibit significantly different characteristics from those observed for quarterly releases in other countries. This can only be appreciated through a differential analysis of French market response to interim and annual announcements.
Prior empirical research in the accounting and finance literatures has often neglected the role of the state in corporate governance, preferring instead to study relationships between shareholders and directors and the effects of various corporate governance mechanisms on the economic performance of companies. In contrast, accounting and business historians have often examined the legal systems, rules, and regulations that control business enterprises, thereby acknowledging the existence of persistent interactions between the state and business entities through time. The purpose of this article is to illustrate, through a discussion and analysis of several ways in which the state has enacted its role in corporate governance, that state regulation and supervision of business entities has been both commonplace and necessary for the maintenance of a stable economic system.
Purpose -The purpose of this paper is to closely study young French small and medium enterprises (SMEs). The authors highlight the structure of these target firms and build a typology of corresponding business models. Design/methodology/approach -The authors used a dataset of 38,000 young French SMEs. It is constituted of all individual and consolidated year-end financial statements submitted by French firms to the commercial court. Data analysis techniques (principal component analysis then hierarchical and ascending classification) were used on the data. Findings -The business models stemming from this typology are typical (to the greatest extent possible) and actionable. The authors are particularly interested in identifying groups of SMEs where government assistance would be particularly effective and strategically valuable for the national economy. Practical implications -One of the authors' conclusions is that the typology is not based on a classical growth model that reflects progressive phases of development in the life of a young firm. Furthermore, it is ineffective and wasteful to focus government assistance efforts on firms based on their age. The authors identify groups of business models where assistance would be more efficient and strategically more effective. Originality/value -It is notable that this paper relies not upon a sample, but upon the exhaustive collection of all available data on the subject. This research questions the allocation efficiency of governmental assistance on the basis of growth models. It intends to provide a better understanding of the criteria that should be taken into account to enhance targeting of assistance toward businesses with the greatest potential for the nation.
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