Patrick Navatte

• Professeur de Finance
• Professor at University of Rennes

Aujourd’hui on constate une forte hétérogénéité des opérations de LBO et l’apparition d’un nouveau « business model » chez les sociétés de Private Equity . Alors que les fonds s’assuraient d’une baisse des coûts chez les sociétés cibles de LBO avant de les revendre rapidement, du fait de la crise et du manque de cibles, ils adoptent une vision de p...

This paper investigates the relation between director compensation structure and shareholder interests in the context of acquisitions. Our evidence suggests that acquirer firms that compensate their directors with a higher proportion of incentive-based compensation have significantly higher stock returns around the announcement. Compared to acquire...

Spin-offs involve a separation of part of the initiator’s business, and appear to have multiple motivations from an accounting and financial point of view. The parent company separates from one of its divisions, whose stock is then listed on the market. The parent company may take the opportunity to meticulously prepare the flotation by managing th...

RÉSUMÉ Cet article s’attache à étudier l’investissement à moyen et long terme dans la chaîne logistique, condition de sa pérennité et de sa croissance. Les conditions de mise en place d’un marché interne du capital où pourraient être sélectionnés de façon collaborative des investissements spécifiques y sont décrites succinctement. Ceci intervient d...

Cet article étudie le coût de financement par obligations rachetables à l'aide d'un échantillon de 2927 émissions américaines émises au pair entre 1984 et 2014. Notre modèle de régression indique que le recours à des obligations rachetables, plutôt qu'à des obligations ordinaires, a coûté en moyenne 10 % du taux de coupon payé par les émetteurs mai...

This paper is the first to investigate rescheduling of distressed corporate debt when both the representative shareholder and the creditor face reservation prices. Parties expect from rescheduling both recovery and growth, but reservation prices are key dimensions to consider in the analysis in order to assess the opportunity and to design the new...

Résumé Cet article traite de la gestion des risques dans la chaîne logistique en utilisant la décomposition financière classique: risque opérationnel, risque financier. Les risques opérationnels sont ceux qui ont reçu le plus d’attention jusqu’ici. Ils font l'objet d'une synthèse. Les risques financiers eux, ont été moins étudiés, et par des analys...

This paper investigates the impact of family control on domestic and international acquisition's payment. This decision is important since it will underpin all the future financial flexibility of the merged firms. We find that the percentage of cash payment in acquisitions is positively associated with family voting rights, but we highlight that fa...

Résumé : Cet article fait la synthèse des plus récentes contributions ayant trait aux effets de la diversification (sectorielle et géographique) sur la valeur des entreprises. Dans un contexte économique instable, cet outil peut constituer une stratégie efficace. Comme observé lors de la récente crise, la diversification permet aux firmes d’alléger...

Le concept de Global Supply Chain Finance (GSCF) a vu le jour après que les flux physiques et d’information des donneurs d'ordres avec leurs fournisseurs soient rationalisés. Les Supply Chains restent cependant fragiles du fait des conflits d'intérêts qui existent en leur sein, et d'un grand besoin de flexibilité. Mais elles veulent aujourd'hui ten...

Abstract This paper is the first to consider rescheduling of distressed corporate debt when both the controlling shareholder and the creditor face reservation prices. Parties expect from rescheduling recovery and growth, but reservation prices are important to consider in order to assess the opportunity and to design the new financial set-up. Cred...

Abstract Using a 13-year panel data set on the Standard & Poor's 1500 firms covering the time period 1998 to 2010, the main objective of this paper is to investigate the effects of advisory directors' presence on the board and monitoring intensity on the board's overall effectiveness in value creation. To achieve this purpose, we first explore the...

This paper investigates the impact of family control on acquisition payment decisions. We consider a sample of 265 acquisitions undertaken by French listed companies between 1997 and 2008. We find that the percentage of cash payment in acquisitions is positively associated with family voting rights. Dilution risk is high at an intermediate level of...

This paper investigates the impact of family control on French acquirers' performance. We consider a sample of 239 acquisitions undertaken by French listed companies between January 1997 and December 2006. Comparing both, short-term and long-term performance, we find that family-controlled firms outperform non-family firms. We find that the relatio...

We study the listing target status impact on the announcement period of French acquirers, and we examine the sustainability of short term wealth creation in the long term. Unlisted-target acquisitions are wealth creating relative to listed-target acquisitions. Besides, in the long-term, acquirers of unlisted targets outperform acquirers of listed t...

Les innovations ont été nombreuses ces dernières années en matière de fusion et d'acquisition. Les formes de paiement se sont sophistiquées, puisque l'on a vu apparaître des paiements sous forme de collar, ou des compléments de rémunération prendre la forme de certificats de valeur contingents (CVC). De plus, des stratégies de quasi-arbitrage (hedg...

This paper has for aim to revisit or to give some insights to the Morellec and Schürhoff (2011) dynamic real option investment model in a world in which firms are compelled to raise outside funds from uninformed investors to finance a total investment outlay. These authors determined a unique moment for financing and investing at the same time. We...

This paper reconsiders American and Bermudan callable bonds and highlights their key differences. We illustrate how the level of interest rate critical for calling Bermudan Callable Bonds (BCBs) can differ from those critical for calling American Callable Bonds (ACBs). We also stress that it is costly for ACB issuers to follow a discrete early call...

This article extends the continuous time framework of the firm developed by Black, Scholes, and Merton to analyze effects of private benefits. We highlight first how straight private benefits can lower stakeholders’ wealth. We nevertheless point out that private benefits do not necessarily mean expropriation of minority equity holders. Managers can...

Cet article traite des conflits potentiels entre actionnaires majoritaires et minoritaires sous l’angle du concept de tunneling. Le tunneling recouvre l’ensemble des leviers existants permettant à des actionnaires majoritaires d’exproprier des actionnaires minoritaires. On aborde l’exemple des augmentations de capital réservées dans le cas simple d...

La vague d’acquisitions des annees 1990 aux Etats-Unis a genere peu de gains, voire des pertes importantes pour les acquereurs. On peut se demander si ce n’est pas le resultat de la relation d’agence qui existe entre les actionnaires et les dirigeants dans le cadre de la firme manageriale a actionnariat diffus. On passe alors en revue les motivatio...

This paper reconsiders the design of debt-equity swaps that are common tools to financially restructure distressed firms. While an ad hoc approach consists in characterizing a set of three parameters, we demonstrate that a system of two equations defines admissible designs. Hence, assuming that creditors do not want to bankrupt the firm nor they wa...

Cet article vise à faire la synthèse des études récentes portant sur la performance boursière des opérations de fusions-acquisitions dans le cadre de l’hypothèse d’efficience des marchés sous la forme semi-forte. La particularité de ces travaux est d’analyser à nouveau les principaux résultats obtenus, en travaillant sur la base d’échantillons de t...

Market assessment of corporate diversification This paper exhibits a synthesis of the most significant recent contributions focusing on geographical and industrial diversification’s effects on firm value. Until 2001, almost all studies bring out a discount of firm value of diversified firms relative to the sum of imputed values of their business se...

the aim of this paper is to present a relevant indicator of security classification (debt, mixed or equity) for callable convertible bonds. The indicator is based on the conversion probabiloity of a callable convertible bond, considering that an adjusted american capped call essentially duplicates the optional rights of both issuers and investors....

F. Longstaff (1990, Journal of Finance) has early pointed out that lenders have incentives to extend the maturity of the debt in case of default. He derived analytical formulae for the debtholders' net gain, the associated optimal extension period and the equity price under the assumption that the extension is decided as soon as the net gain is pos...

Many credit management systems, based on different underlying frameworks, are now available to measure and control default and credit risks1. Homogeneous credit classes and associated transition matrix may thus be constructed within many different frameworks. For illustration, the KMV Corporation provides a transition matrix within a structural app...

The implied standard deviation is widely believed to be the best available forecast of the volatility of the returns over the remaining contract life (Jorion 1995). In this paper, we generalize this result to the higher moments of the distribution (Skewness and Kurtosis) based on a Gram-Charlier series expansion of the normal distribution (Corrado...

The main purpose of this paper is to examine empirically the time series properties of the French Market Volatility Index (VX1). We also examine the VX1's ability to forecast future realized market volatility and finds a strong relationship. More importantly, we show how the index can be used to generate volatility forecasts over different horizons...

The aim of this paper is to value interest rate structured products in a simpler and more intuitive way than Turnbull(1995). Considering some assumptions with respect to the evolution of the term structure of interest rates, the price of a European interest rate digital call option is given. Recall it is a contract designed to pay one dollar at mat...

we value structured corridor bonds using interest rate call delayed digital options. We use a one factor linear gaussian model and the well-known forward neutral probability approach. Closed-form formula are derived for all the contracts studied in a simpler and different way than Turnbull (1995). Moreover some simulations are presented to demonstr...

the main aim of this paper is to study some extensions of the valuation formulae concerning classical binary (digital) options which can be considered as elementary tools by financial arrangers to build structured financial products. First of all, we analyse the vamluation of a simple binary option involving one or two underlying assets in a comple...

The main topic of this paper is to study some non standard barrier option contracts, and to show that they are less expensive than their classic european counterparts. Three contracts are considered: a capped call, a soft barrier range option, and an outside barrier option. One of the most interesting things abouit the last case is the way in which...

depuis le début des années 1990 aux Etats-Unis, et de plus en plus sur les marchés européens de gré à gré, on voit apparaître de nouveaux types d'options appelées exotiques. Ces produits, plus sophistiqués, permettent d'une part de rendre des services "sur-mesure" et d'autre part d'étaendre la gamme des utrilisations des options. On évalue ces nouv...

In this article we provide a review of various exotic options and examine in particular rainbow options. Rainbow options have nowadays become part of many financial contracts. While the value limits of these options at maturity are easily determined intuitively, it is more difficult to derive precise option values before expiration. For this an app...

Une option à premium contingent est un contrat d'option classique auquel est liée une clause particulière. Cette dernière indique qu'à l'échéance de l'option, en plus du flux terminal normal de l'option, un certain montant d'argent sera échangé entre l'acheteur et le vendeur du contrat en fonction de la valeur prise par l'actif sous-jacent à cette...

Deux des grands apports de la thèorie financière à l'éude des marchés de capitaux sont présentés ici. la théorie de la structure par terme des taux d'intérêt (STTI) et la thèorie des options. ....l'analyse de ces outils est un préalable à l'étude de pratiquement tous les instruments financiers et dans une large mesure indispensable à l'examen de no...

Durant les trente dernières années, les regroupements d’entreprises furent partie intégrante du développement des économies capitalistes. Beaucoup d’études visèrent à analyser leur impact sur la structure des marchés, et sur certaines variables macro-économiques (R. NELSON (1959), G.J. STIGLER (1950)). Cependant peu essayèrent de répondre aux quest...

Patrick Navatte : L'étude des effets micro-économiques produits par les opérations de fusion-absorption. Après avoir examiné brièvement les hypothèses et les méthodes, en fonction desquelles il paraît possible de mesurer les effets des opérations de fusion, absorption, l'auteur analyse successivement deux catégories d' effets. L'analyse empirique p...

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