Patricia Crifo
UPOND & École Polytechnique

14.77

Publications

  • Patricia Crifo, Antoine Rebérioux
    01/2015; 117(1):205. DOI:10.3917/ecofi.117.0205
  • Patricia Crifo, Vanina D. Forget
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    ABSTRACT: This article examines the role of corporate social and environmental responsibility in the energy transition, as a complement of or substitute for public decisions. Three main motives explain the economic incentives of firms implementing such voluntary practices: to respond to public and private pressures, to attract consumers, to differentiate one own’s products from those of its competitors and create new markets; or to respond to the demands of shareholders, in particular socially responsible investors, or employees. The real effects of corporate social and environmental responsibility on financial and nonfinancial performance are also discussed.
    Revue d économie industrielle 12/2014; DOI:10.4000/rei.6030
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    ABSTRACT: This paper sheds light on the impact environmental, social and governance (ESG) corporate practices disclosure have on equity financing. We present a unique framed field experiment in which professional private equity investors competed in closed auctions to acquire fictive firms. We hence observe that corporate non-financial (ESG) performance disclosure impacts firm valuation and investment decision and we quantify to which extent. Main result is an asymmetric effect, investors reacting more to bad ESG practices disclosure than to good ESG ones. Our findings are discussed in terms of practical implications for both investors and firm managers.
    Journal of Corporate Finance 12/2014; 30. DOI:10.1016/j.jcorpfin.2014.12.006 · 1.45 Impact Factor
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    ABSTRACT: This paper analyzes how different combinations of Corporate Social Responsibility (CSR) dimensions affect corporate economic performance. We use various dimensions of CSR to examine whether firms rely on different combinations of CSR, in terms of quality versus quantity of CSR practices. Our empirical analysis based on an original database including 10,293 French firms shows that different CSR dimensions in isolation impact positively firms’ profits but their effect in term on intensity varies among CSR dimensions. Moreover, the findings on the qualitative CSR measure, based on interaction between its dimensions, show that the substitutability of these dimensions is highly significant for firm performance. However, in terms of the intensity, those interactions produce differential effects.
    International Journal of Production Economics 12/2014; DOI:10.1016/j.ijpe.2014.12.019 · 2.08 Impact Factor
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    ABSTRACT: This paper develops a two-way director-firm fixed effect model to study the relationship between independent directors’ individual heterogeneity and firm operating performance, using French data. This strategy allows considering and differentiating in a unified empirical framework mechanisms related to board functioning and mechanisms related to director selection. We first show that the independence status, netted out unobservable individual heterogeneity, is negatively related to performance. This result suggests that independent board members experience a strong informational gap that outweighs other monitoring benefits. However, we show that industry-specific expertise as well as informal connections inside the boardroom may help to bridge this gap. Second, we provide evidence that independent directors have higher intrinsic ability as compared to affiliated board members, consistent with a reputation-based selection process.
  • Cavaco, Crifo
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    ABSTRACT: This article analyses the interactions between various dimensions of corporate social responsibility (CSR) that mediate the relationship between CSR and financial performance. We hypothesize that the absence of consensus in the empirical literature on the CSR–financial performance relationship may be explained by the existence of synergies (complementarity) and trade-offs (substitutability) between the different CSR components. We investigate such relationship using a final unbalanced panel sample of 1094 observations (around 300 firms per year) from 15 countries over the 2002–2007 period. Our results show that responsible behaviours towards employees (human resources dimension) and towards customers and suppliers (business behaviour dimension) appear as complementary inputs of financial performance, indicating mutual benefits and less conflict between those stakeholders. Conversely, responsible behaviours towards customers and suppliers and towards the environment appear as substitutable inputs of financial performance, suggesting more conflict between or over-investment towards those stakeholders.
    Applied Economics 06/2014; 46(27). DOI:10.1080/00036846.2014.927572 · 0.46 Impact Factor
  • Patricia Crifo, Vanina D. Forget
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    ABSTRACT: This paper analyzes the economics of Corporate Social Responsibility (CSR), as a private response to market imperfections in order to satisfy social preferences. Depending on whether they affect regulation, competition or contracts, market imperfections driving CSR decisions are classified in three categories: public goods and bads and altruism; imperfect competition; and incomplete contracts. We successively present these drivers of CSR decisions and highlight the nature of incentives (external or internal) at work and the testable (and tested) hypotheses in the reviewed studies. We finally review the link between CSR and financial performance, as well as between CSR and social and environmental performance. A twofold discrepancy appears in the literature, opening future research paths: a disconnection between our understanding of CSR drivers and CSR impacts; and a knowledge gap between CSR financial and social consequences, the latter having received little attention.
    Journal of Economic Surveys 01/2014; 29(1). DOI:10.1111/joes.12055 · 1.33 Impact Factor
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    P. Crifo, N. Mottis
    Business & Society 01/2013; DOI:10.1177/0007650313500216 · 1.94 Impact Factor
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    Patricia Crifo, Vanina D. Forget
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    ABSTRACT: The growth of socially responsible investment on public financial markets has drawn considerable academic attention over the last decade. Discarding from previous literature, this paper sets up to analyze the Private Equity channel, which is shown to have the potentiality to foster sustainable practices in unlisted companies. The fast integration of the Environmental, Social and Governance issues by mainstream Private Equity investors is unveiled and appears to have benefited from the maturation of socially responsible investment on public financial markets and the impetus of large conventional actors. Hypothesis on the characteristics and drivers of this movement are proposed and tested on a unique database covering the French Private Equity industry in 2011. Empirical findings support that Private Equity responsiblen investing is characterized by shareholder activism and strategically driven by a need for new value creation sources, increased risk management and differentiation. In particular, results show that independent funds, which need to attract investors, are more likely than captive funds to develop responsible practices. Evolution of the movement and future research paths are proposed.
    Journal of Business Ethics 08/2012; DOI:10.1007/s10551-012-1443-y · 0.96 Impact Factor
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    Patricia Crifo, Vanina D. Forget
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    ABSTRACT: This article analyzes the economics of Corporate Social Responsible behaviors, namely the voluntary integration of environmental, social and governance factors in firms' strategy. We review theoretical and empirical literature and provide a unified framework of the forces driving corporate social responsibility, relying on three categories of market imperfections: the existence of externalities and public good; consumer heterogeneity; and imperfects contracts. The impacts of corporate social responsibility on corporate performance and society are also surveyed and the lack of knowledge on the latter leads to a research agenda.
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    Patricia Crifo, Nicolas Mottis
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    ABSTRACT: This article analyzes how the actual and expected future activities of French Socially Responsible Investment (SRI) analysts may reveal a convergence process between SRI decisions and traditional financial investment decisions, that is a form of “mainstreaming” of SRI processes, by asking the SRI analysts themselves how their work has evolved and how they perceive their positioning in the asset management sector. We present the results of a field survey on the composition and activities of French SRI analysts’ teams of large institutional investors and asset managers in France in 2009. We show that the convergence towards the mainstream financial analysts seems to be clearly engaged. However, the SRI domain is still emerging and remains very fragmented leading to a wide heterogeneity of practices and positioning in the respective organizations. This is interpreted as a clear sign of a transition phase.
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    Sandra Cavaco, Patricia Crifo
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    ABSTRACT: This article analyzes the relationship between corporate social responsibility (CSR) and firm performance by proposing a theoretical model and by testing empirically its main predictions on a matched panel database for the biggest European listed firms over the 2002-2007 period. Our dataset gathers two sources of information: environmental, social and governance (ESG) ratings from the Vigeo database, and economic and financial performance data from the Orbis database. Using the System GMM estimator for dynamic panel data model, we test the complementarity and substitutability, that is the super- and sub- modularity between various corporate social responsibility practices, along with its impact on firm performance. We do observe that a complementarity premium on specific CSR dimensions (human resources and business behavior towards customers and suppliers) exists but also that some practices are relative substitutes (environment and business behaviors).
  • Patricia Crifo, Jean-Pierre Ponssard
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    Sandra Cavaco, Patricia Crifo
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    ABSTRACT: This article analyzes the relationship between corporate social performance (CSP) and corporate financial performance (CFP) by proposing a theoretical model and by testing its main predictions through an econometric study on a matched CSP-CFP panel data for the biggest European listed firms over the 2002-2007 period. Our matched micro-economic dataset gathers two sources of information: environmental, social and governance ratings from the Vi-geo database and economic and financial performance data from the Orbis database. Using panel data technique, we examine how the complementarity between various corporate social responsibility practices is likely to increase performance, as predicted by our theoretical model.
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    Patricia Crifo, Hind Sami
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    ABSTRACT: This paper proposes a model to analyze the dynamic relations between incentive contracts and analysts' effort in providing accurate research when both ethical and reputational concerns matter. First, we show that reputation picks up ability and thus serves as a sorting device: when analysts have a relatively low reputation for providing research quality (below a threshold level) banks find it more profitable to offer a mix of monetary and non monetary (ethic based) incentives and rely on the analyst's work ethic in ordre to provide research quality. Alternatively, when analysts have a high reputation, full financial (performance based) incentives contracts offer a substantial reward for their contribution to the firm's profits. Second, we find that the design of compensation contracts, in the presence of reputational concerns and work ethic, may lead to incentive problems: full financial incentives contracts may exacerbate conflicts of interest by giving analysts extrinsic rewards on reporting, thereby inducing them to prefer high short term benefits to the detriment of long term research and coverage effort. On the contrary, a mix of monetary and non monetary rewards based on the analyst's work ethic may allow them to resist pressures from conflicts of interest and induces a high research effort thus enhancing long-run reputation.
    SSRN Electronic Journal 02/2009; DOI:10.2139/ssrn.1343579
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    Patricia Crifo, Jean-Pierre Ponssard
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    ABSTRACT: Cet article pr�cise la nature des liens entre RSE et performance financi�re en d�gageant trois axes majeurs pour une r�flexion future: (1) l'inscription durable de la RSE dans le syst�me de valeurs des entreprises, (2) les conditions d'une validation empirique d'un lien entre la strat�gie RSE et la performance financi�re, lorsque cette strat�gie s'inscrit dans le coeur de m�tier de la firme, et, (3) l'int�r�t d'une reformulation de ce lien lorsqu'il s'agit d'une strat�gie Bottom of the Pyramid.
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    Patricia Crifo
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    ABSTRACT: This article contributes to the debate on skill-biased technical change by studying the dynamics of skill supply and wage inequality in an endogenous growth model with ability-biased technical progress. Due to a discouragement effect, rising within groups inequality reduces incentives to become educated for ordinary-ability workers. This mechanism generates a non-monotonic relationship between the growth rate and skill supply driving wage inequality upward during periods of accelerating technical change. This theoretical explanation is consistent with the apparent ambiguous relationship between the relative skill supply and inequality in the last decades in several OECD countries.
    Labour Economics 10/2008; 15(5-15):812-830. DOI:10.1016/j.labeco.2007.07.002 · 0.92 Impact Factor
  • Patricia Crifo, Jean-Pierre Ponssard
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    ABSTRACT: This article examines how corporate social and environmental responsibilities (CSR) are evaluated and instrumented by various stakeholders: enterprises, specialized agencies, NGOs, and investors. This analysis questions whether a CSR industry has emerged over the past decade, analogous to the value creation industry that developed during the 1990's. Several lines of research related to this hypothesis are suggested throughout the article.
  • Patricia Crifo, Hind Sami
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    ABSTRACT: This contribution proposes a model of entrepreneurial activity highlighting a complex relationship between innovation and stigma of failure. Innovation decisions are examined in an endogenous growth model with horizontal differentiation in the spirit of Romer (1990). In our framework, entrepreneurs decide to invent a new good, given entrepreneurial talent and production costs, and face a risk of failure. If an entrepreneur fails in this innovation process, the firm remains on the market but bears a stigma of failure. We then analyze how the risk and the stigma of failure affects business dynamism and economic growth. We show that while a higher risk of failure is detrimental to innovation and growth, it positively affects the returns to entrepreneurial talent (or equivalently the comparative advantage of successful innovators). On the contrary, a higher stigma of failure inhibits entrepreneurial creation but might be beneficial for growth. These results are supported by recent empirical evidence in OECD countries.
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    Patricia Crifo, Jean-Pierre Ponssard
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    ABSTRACT: Cet article propose une lecture de la RSE en termes d'enjeux et d'instrumentation de ces enjeux par les différents acteurs concernés : entreprises, agences spécialisées, ONG, investisseurs. Cette analyse permet de s'interroger sur l'émergence d'une industrie de la RSE au même titre que s'est développée dans les années 1990-2000 une industrie de la création de valeur. Quelques pistes de recherche en rapport avec cette hypothèse sont alors précisées.

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