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Poretti Cédric

Assistant Professor

Compétences principales

Assistant Professor

EHL Hospitality Business School
Route de Berne 301, 1000 Lausanne 25, Switzerland, CH

BSc HES-SO in Hôtellerie et professions de l'accueil - EHL Hospitality Business School

Comptabilité de gestion
Comptabilité financière (CO; RPC; IFRS)
Analyse financière

En cours

Gender diversity all over the firm: the consequences of financial reporting feminization on financial reporting outcomes

Rôle: Requérant(e) principal(e)

Financement: HES-SO

Description du projet :

Switzerland has a low but increasing proportion of women in leadership positions (OFS, 2015), and the importance of gender diversity is becoming always more important, especially for large Swiss companies evolving in a global market. In such a context, it is of utmost importance to understand the consequences of having more women in high-skilled positions all over the firm.

Using a unique hand-collected corporate governance database of Swiss traded firms from 2010 to 2017, we aim to study the impact of gender diversity in high-skilled financial positions on financial reporting outcomes. Prior work analyses the impact of gender looking at one financial reporting stakeholder within the firm (executives or audit committee members) or outside the firm (auditors). In all cases, these studies are fragmented as they only study each of the stakeholders individually. In this research proposal, we consider stakeholders individually but also together, that is to say we investigate their interaction(s).

Equipe de recherche au sein de la HES-SO: Poretti Cédric

Durée du projet: 01.01.2020 - 01.07.2021

Montant global du projet: 99'700 CHF

Statut: En cours

2024

Innovative business strategies, corporate performance, and firm value in the travel and leisure industry

Article scientifique ArODES

Cédric Poretti, Jean-Philippe Weisskopf, Pierre de Vivie de Régie

International Journal of Hospitality Management, Vol. 118, article no. 103683

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Résumé:

This study examines the influence of innovative business strategies on corporate profitability and valuation in the travel and leisure industry. Following the theoretical framework developed by Miles and Snow (1978) to measure business strategy and using a sample of 791 firm-year observations for 138 publicly listed international companies from 2014 to 2021, we find that more innovative business strategies are associated with lower profitability but higher market valuations. Moreover, the negative association of innovation with profitability reversed during COVID-19. Our paper provides insights into the short-term consequences of innovation and how investors perceive innovative companies. Managers and investors may use our results to better understand the key factors affecting corporate performance and value in the travel and leisure industry.

2023

In family we trust :

Article scientifique ArODES

in good and bad times

Philippe Masset, Cédric Poretti, Jean-Philippe Weisskopf

International review of finance, 24, 1, pp. 128-138

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Résumé:

This short report investigates the stock market behavior of Swiss companies during the COVID-19 pandemic. Results suggest that family firms performed better during the outbreak and post-lockdown periods than widely-held firms. Family firms also displayed a larger abnormal trading volume drop than widely-held companies. In size-sorted subsamples, the volume difference appears more pronounced for smaller firms. We explain these findings by family firms, especially smaller ones, predominantly attracting investors with a long-term horizon. Such investors are less likely to sell during market turmoil, making family firms not only less liquid but also less sensitive to market fluctuations.

Family identification and earnings management in listed firms

Article scientifique ArODES

Cédric Poretti, Tiphaine Jérôme, Carl Brousseau

Accounting in Europe, 20, 3, 339-369

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Résumé:

In this paper, we investigate the earnings management behavior of listed family firms holding the name of the family (eponymous FF). Specifically, we use a Swiss sample of 1,544 firm-year observations from 2006 to 2018 to examine the association of eponymous FF with accrual-based earnings management in general, and identify circumstances where this association does not hold. First, we find that, on average, eponymous FF exhibit less earnings management than non-FF. Second, we exploit a Swiss-specific option to voluntarily turn away from IFRS to local GAAP. Using a difference-in-differences approach, we find that eponymous FF exhibit higher levels of earnings management immediately after the switch. Finally, we show that eponymous FF exhibit higher earnings management when the family is directly involved in the board of directors or the managing board. Our findings provide a more nuanced understanding of the effects of family identification on earnings management incentives in listed firms.

Solidarity actions with Ukraine and hospitality firm value

Article scientifique ArODES

Juan Luis Nicolau, Cédric Poretti, Cindy Yoonjoung Heo

Tourism Management, 100, article n°104813

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Résumé:

The objective of this research note is to analyze the effect of solidarity actions following the invasion of Ukraine on hotel and restaurant firms’ market value. Press releases and corporate websites of 117 companies were investigated to determine the actions taken in response to the Russian invasion of Ukraine. Then, using an event study methodology, cumulative abnormal returns were calculated following the actions taken. The results indicate that first movers benefited the most from solidarity actions, while middle-point intensity actions (versus strong or light actions) brought about the highest effects on market value.

Fee-oriented strategies, ownership structure and analyst forecast accuracy in the hospitality industry

Article scientifique ArODES

Cédric Poretti, Adam Aoun, Manisha Singal

Journal of Hospitality & Tourism Research, To be published

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Résumé:

This study analyzed the impact of the interplay between fee-oriented strategies and ownership structure on analyst forecast accuracy using a sample of international publicly-listed hospitality firms. Based on 29,019 earnings forecasts made by financial analysts, using Ordinary Least Squares regression (OLS), entropy balancing, and Heckman two-stage models, we documented that, on average, forecasts were more accurate for firms pursuing a fee-oriented strategy. Moreover, the positive effect of fee-oriented strategies on forecast accuracy was stronger for companies with concentrated ownership. We explain our results by the fact that fee-oriented firms enjoyed more stable cash flows and revenue, reducing information asymmetries between a firm’s outsiders and insiders, thus enabling analysts to make more accurate forecasts. This effect was more important for firms with concentrated ownership in particular, as they generally disclosed less information to the capital markets. Our findings should be of great interest to hospitality firms’ owners, managers, and boards of directors.

Business strategies and financial reporting complexity in hospitality firms

Article scientifique ArODES

Cédric Poretti, Tiphaine Jérôme, Cindy Yoonjoung Heo

International Journal of Hospitality Management, 110, article n°103429

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Résumé:

This study investigates the impact of the asset-light and fee-oriented (ALFO) strategy on the auditors’ assessment of financial reporting complexity. To do so, we adopt an integrated mixed method design. First, from semi-structured interviews with audit experts active in the hospitality industry, we identify the proposition that the ALFO strategy induces incremental financial reporting complexity leading external auditors to set higher audit fees. Then, the association between the extent of asset-lightness and audit fees is empirically tested on a sample of global hospitality companies over the 2010–2019 period. The results confirm an inverted U-shaped association. Study findings are of interest to hospitality firms’ investors, board members, and executives as they provide fresh insight into an under-investigated consequence of the ALFO strategy and reveal the conditions preserving accounting information quality in an increasingly complex environment.

2022

COVID-19 and firm value drivers in the tourism industry

Article scientifique ArODES

Cédric Poretti, Cindy Yoonjoung Heo

Annals of tourism research, 2022, vol. 95, article no. 103433, pp. 1-14

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Résumé:

Using an international sample of 1315 observations for 194 listed tourism firms from 2012 to 2019, we investigate the impact on firm value of DuPont components, namely asset turnover and profit margin. Next, using an event study methodology, we analyze how these components are associated with the stock market reaction to the COVID-19 pandemic announcement. The results indicate that over 2012–2019, the association of performance with firm value is mostly driven by tourism companies' ability to become more efficient with their asset base, while both profitability and productivity levels are significant predictors of firm value one year ahead. Abnormal returns surrounding the pandemic announcement appear to be more negative for more productive firms, while the latter enjoyed a stronger recovery.

An empirical examination of relative valuation of publicly listed firms using French GAAP after IFRS adoption

Article scientifique ArODES

Cédric Poretti, Alain Schatt, Michel Magnan

Accounting auditing control, 2022, vol. 28, no. 2, pp. 55-81

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Résumé:

Nous étudions comment l’adoption des normes IFRS par l’Union Européenne, en 2005, affecte la mise en oeuvre de la méthode des multiples des entreprises comparables pour l’évaluation des sociétés qui continuent d’appliquer les normes comptables nationales. L’adoption des normes IFRS réduit fortement l’ensemble des entreprises comparables appliquant des normes nationales. Notre analyse de 94 cibles d’offres publiques d’achat annoncées entre 1999 et 2016 met en évidence que le nombre d’entreprises comparables sélectionnées est réduit après 2005, mais leur sélection est basée sur un nombre plus élevé de critères. Globalement, la comparabilité économique des entreprises comparables augmente mais la comparabilité comptable diminue. Les professionnels de l’évaluation tentent de limiter ce problème par : 1) un recours à des multiples moins sensibles aux différences comptables ; et 2) une réduction du poids accordé aux valeurs obtenues à l’aide de la méthode des entreprises comparables dans la fixation du prix d’offre de l’OPA. Notre article contribue à la maigre littérature sur les conséquences économiques de l’adoption des normes IFRS pour les sociétés n’ayant pas adopté ces normes.

Three anchoring managerial mechanisms to embed sustainability in service organizations

Article scientifique ArODES

Carlos Martin-Rios, Cédric Poretti, Giovanni-Battista Derchi

Sustainability, 2022, vol. 14, no. 1, article no. 265, pp. 1-16

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Résumé:

The aim of this discussion paper is to address three major concerns in establishing sustainability in service organizations regarding the intersections among external reporting, internal governance, and business management and innovation. External reporting addresses issues related to sustainability information specificities and determinants, the pros and cons of mandating CSR disclosures, and the need for assurance. The internal management of sustainability refers to the opportunities and challenges for services to introduce sustainable business models and sustainability innovation. Finally, internal governance prioritizes the control process and systems employed by managers to make informed decisions and implement sustainability strategies. By means of an extensive and sophisticated literature review, the article contributes to untangling the opportunities and challenges that services face when adopting external and internal practices to commit to sustainability. Specifically, the paper addresses how company-level mechanisms of transparency, accountability, and innovation are linked to system-level mechanisms of implementation that lead to the adoption of sustainability in service organizations.

2021

Asset-light strategies and stock market reactions to COVID-19’s pandemic announcement :

Article scientifique ArODES

the case of hospitality firms

Cédric Poretti, Cindy Yoonjoung Heo

Tourism economics, To be published

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Résumé:

This research note investigates the stock market reactions of international hospitality firms to COVID-19’s pandemic announcement by the World Health Organization. In line with the behavioral finance literature, the findings indicate that, in the short term, investors overestimated the risks underlying asset-heavy firms because of information uncertainty. Firms pursuing an asset-light (AL) strategy are associated to significantly less negative cumulative abnormal returns in the 4 days following the announcement, especially firms following an AL strategy that reduces significantly the operating leverage. However, this difference vanishes after 5 trading days, meaning that investors revised their expectations. This research note suggests that the cost structure of AL firms matters in reducing information uncertainty and sheds light on the consequences of the COVID-19 crisis on the hospitality industry. It also provides useful information to board members, financial analysts, and companies’ top managers when evaluating whether and how to pursue an AL strategy, and the potential consequences of it.

Asset-light strategies and stock market reactions to COVID-19’s pandemic announcement: the case of hospitality firms

Article scientifique

Poretti Cédric, Heo Cindy

Tourism Economics, 2021

Résumé:

This research note investigates the stock market reactions of international hospitality firms to COVID-19’s pandemic announcement by the WHO. In line with the behavioral finance literature, the findings indicate that, in the short term, investors overestimated the risks underlying asset-heavy firms because of information uncertainty. Firms pursuing an asset-light (AL) strategy are associated to significantly less negative cumulative abnormal returns in the four days following the announcement, especially firms following an AL strategy that reduces significantly the operating leverage. However, this difference vanishes after five trading days, meaning that investors revised their expectations. This research note suggests that the cost structure of AL firms matters in reducing information uncertainty, and sheds light on the consequences of the COVID-19 crisis on the hospitality industry. It also provides useful information to board members, financial analysts, and companies’ top managers when evaluating whether and how to pursue an AL strategy, and the potential consequences of it.

2020

The asset-light strategies and the dividend puzzle

Article scientifique ArODES

international evidence from the hospitality industry

Cédric Poretti, Inès Blal

International journal of hospitality management, 2020, vol. 91, article 102639, pp. 1-10

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Résumé:

This study investigates the impact of the asset-light strategy on dividend policy using a sample of large international publicly-listed companies (399 firm-year observations) operating in the hotel and restaurant industry over the 2006–2018 period. Taking the perspective of agency theory, we posit that the asset-light strategy in conjunction with significant growth is a context in which high agency conflicts arise. Using Tobit and OLS models, our results indicate that adopting an asset-light strategy only impacts dividend policy for firms with high growth. More interestingly, the positive impact of the asset-light strategy on dividend payouts occurs for firms with substantial growth if institutional ownership is low. In such situations, significant potential agency conflicts (due to high free cash flows) coupled with the lack of monitoring from institutional investors lead firms to use dividends as a monitoring tool. Finally, a change analysis supports our main findings.

What explains differing holding periods across hotel investments? :

Article scientifique ArODES

a hazard rate framework

Cédric Poretti, Prashant Das

International journal of hospitality management, 2020, vol. 89, article 102564, pp. 1-12

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Résumé:

We explain the variation in hotel holding periods (HP) based on liquidity needs, owner type, acquisition conditions and timing of hotel renovation. Contrary to popular belief, properties owned by listed companies tend to have longer HPs due to lower liquidity constraints. REITs sell heterogeneous hotels sooner to strengthen their focus whereas REOCs keep such assets longer for diversification benefits. Moreover, we document that higher quality hotels tend to have longer HPs, and that capital expenditure employed in renovating an acquired asset prolongs the HP whereas assets renovated before acquisition experience shorter HPs. Finally, we show how our model can be used in practice to predict the median HP based on a given hotel characteristics, and present a method to adjust the DCF discount rate according to the selected holding period.

What Explains Differing Holding Periods Across Hotel Investments? A Hazard Rate Framework

Article scientifique

Poretti Cédric, Das Prashant

International Journal of Hospitality Management, 2020

Résumé:

Predictability of how long the current owners will hold a hotel (i.e. the “holding period”, HP hereafter) has strategic implications for owners, lenders, and consultants. An arbitrarily chosen HP may lead to valuation errors. We explain the variation in HP based on liquidity needs, owner type, acquisition conditions and timing of hotel renovation. Contrary to popular belief, properties owned by listed companies tend to have longer HPs due to lower liquidity constraints. REITs sell heterogeneous hotels sooner to strengthen their focus whereas REOCs keep such assets longer for diversification benefits. Moreover, we document that higher quality hotels tend to have longer HPs, and that capital expenditure employed in renovating an acquired asset prolongs the HP whereas assets renovated before acquisition experience shorter HPs. Finally, we show how our model can be used in practice to predict the median HP based on a given hotel characteristics, and present a method to adjust the DCF discount rate according to the selected holding period.

Impact of Leverage on Financial Information Quality: International Evidence from the Hospitality Industry

Article scientifique

Poretti Cédric, Alain Schatt, Tiphaine Jérôme

Journal of Hospitality Financial Management, 2020

Résumé:

Earnings are a key firm-performance yardstick for investors, but are not always reliable as they may be manipulated by managers. In this study, we analyze the relationship between earnings quality and debt levels of firms in the hospitality sector, using a sample of 642 firms from 26 countries for the 2002-2016 period. Results show that hospitality firms with higher financial leverage manage less their earnings. However, this finding holds only for companies in countries with strong investor protection. As such, some interesting implications of the leverage-earnings quality relationship are revealed for investors, lenders, and professionals in the hospitality industry.

The asset-light strategies and the dividend puzzle: International evidence from the hospitality industry

Article scientifique

Poretti Cédric

International Journal of Hospitality Management, 2020 , vol. 91, no 102639

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Résumé:

2019

Le plafond de verre dans les cabinets d’audit suisses :

Article professionnel ArODES

bilan et perspectives

Cédric Poretti, Alain Schatt

Expert Focus, 2019, no 8, pp. 566-569

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Résumé:

La profession comptable en Suisse, comme toute autre profession, doit faire face au problème du plafond de verre (glass ceiling), c’est-à-dire à la présence limitée de femmes à des niveaux hiérarchiques élevés. Cet article dresse un bilan sur ce thème.

2018

La gestion des résultats par les nouveaux dirigeants :

Article scientifique ArODES

quels enjeux pour les conseils d’administration ?

Corinne Bessieux-Ollier, Cédric Poretti, Alain Schatt

Revue française de gouvernance d’entreprise, 2018, no. 19, pp. 69-89

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Résumé:

En se fondant sur les résultats de la recherche académique en comptabilité-finance, cet article insiste sur le risque de gestion des résultats par de nouveaux dirigeants. Il rappelle que les membres du conseil d’administration doivent notamment être particulièrement attentifs aux dépréciations du goodwill et aux provisions pour restructurations. Nous formulons plusieurs recommandations pour les conseils d’administration, susceptibles de limiter la gestion des résultats par les nouveaux dirigeants et, par conséquent, d’améliorer la qualité des informations financières divulguées par les entreprises.

Audit committees’ independence and the information content of earnings announcements in Western Europe

Article scientifique ArODES

Cédric Poretti, Alain Schatt, Liesbeth Bruynseels

Journal of accounting literature, 2018, vol. 40, pp. 29-53

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Résumé:

We examine whether the percentage of independent members sitting on the audit committee, in different institutional settings, impacts the market reaction (measured by the abnormal stock returns variance and the abnormal trading volume) to earnings announcements. For our sample composed of more than 7′600 earnings announcements made by European firms from 15 countries between 2006 and 2014, we find that the market reactions to earnings announcements are significantly larger when the audit committee is more independent in countries with weak institutional setting. Our results generally hold after controlling for numerous methodological issues. We conclude that more independent audit committees are substitutes for weak institutions to increase the credibility of earnings announcements. Our results should be of great interest for European regulators who recently introduced new requirements for public firms regarding audit committees’ independence.

2017

Comment sont évaluées les cibles d’OPA en Suisse et en France ? :

Article professionnel ArODES

similitudes et différences

Alain Schatt, Cédric Poretti

Expert Focus, 2017, vol. 1-2, pp. 31-37

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Résumé:

L’article se focalise sur les pratiques actuelles d’évaluation, en Suisse et en France, dans le contexte des offres publiques d’achat. Les auteurs exposent successivement leur méthodologie, leurs principaux résultats et quelques enjeux pratiques et académiques.

2024

Tax avoidance and business models in hospitality firms

Conférence ArODES

Cédric Poretti, Tiphaine Jérôme

Proceedings of the 6th Wine & Hospitality Management Workshop

PEOPLE@HES-SO Annuaire et Répertoire des compétences

Poretti Cédric

Assistant Professor

Compétences principales

Finance et comptabilité

Analyse financière

Gouvernance d'entreprise

Audit

Enseignement supérieur

Assistant Professor

PEOPLE@HES-SO
Annuaire et Répertoire des compétences