Why are the French so different from the Germans? Underpricing of IPOs on the Euro New Markets

We study the underpricing of firms listed on the two largest EuroNM stock exchanges, the Neuer Markt of Germany and the Nouveau Marché of France. We find that the high underpricing in these two markets – contrary to the evidence on the US – is not driven by insiders’ selling behaviour. However, the large underpricing is caused by the high degree of riskiness of the issuing firms and by the partial adjustment phenomenon of offer prices to compensate institutional investors for the truthful revelation of their demand for the shares. For France, lock-up agreements act as substitutes to underpricing, but not so for Germany. We also explore the reasons for the large difference in underpricing between the German and the French IPOs: German firms are more underpriced because they are riskier, have larger price revisions, have less stringent VC lock-up contracts, and go public mostly during the hot issue period when the general level of underpricing in all IPO markets is substantially higher.     

Blame shifting and blame obfuscation: The blame avoidance effects of delegation in the European Union

The delegation of governance tasks to third parties is generally assumed to help governments to avoid blame once policies become contested. International organizations, including the European Union (EU), are considered particularly opportune in this regard. The literature lacks assessments of the blame avoidance effects of delegation, let alone of the effects of different delegation designs. To address this gap in the literature, we study public blame attributions in the media coverage of two contested EU policies during the financial crisis and the migration crisis. We show that the blame avoidance effect of delegation depends on the delegation design: When agents are independent (dependent) of government control, we observe lower (higher) shares of public blame attributions targeting the government (blame shifting effect), and when agents are external (internal) to the government apparatus, overall public blame attributions for a contested policy will be less (more) frequent (blame obfuscation effect). Our findings yield important normative implications for how to maintain governments’ accountability once they have delegated governance tasks to third parties.     

Narrative dynamics in European Commission AI policy—Sensemaking,agency construction,and anchoring

Artificial Intelligence (AI) is arguably one of the most powerful and disruptive technologies of our times which may pose challenges as well as opportunities to contemporary political organizations. Studying AI from a lens of perceived uncertainty, this article studies the policy response of the European Commission toward this fast-paced emerging technology. By empirically focusing on the Commission's policy process from start to end, from initial communication to concrete proposal, the article shows how different types of narratives are used to construct the new policy area of AI policy. A novel theoretical framework is constructed building on a combination of narrative organizational studies and narrative policy studies, displaying how narratives play a key role in organizational sensemaking, agency construction and anchoring. The paper finds that the Commission broadly makes sense of AI technologies with a future-oriented discourse, establishes agency to existing and new forms of political organizing and anchors the policy response within the overarching frame of the EU single market policy. The main contribution of the paper is that it shows how political organizations settles uncertainty through narratives and sketches a way forward through establishing policy goals and anchoring them within pre-existing lines of political mobilization.     

Accountability in the EU's para-regulatory state: The case of the Economic and Monetary Union

This article revisits Majone's famous argument about accountability in the regulatory state in reference to the European Union's (EU) Economic and Monetary Union. We show that the EU has entered the stage of a “para-regulatory state” marked by increasing EU regulation in areas linked to core state powers. Despite the redistributive and politicized nature of these policy areas, the EU's “para-regulatory state” has continued to rely on its regulatory model of accountability, focused on decisionmaking processes, and interest mediation. In line with Majone, we describe the model as procedural and contrast it to substantive accountability – which is necessary when regulation has clear redistributive implications. Using two case studies from fiscal policy and monetary affairs, we illustrate the predominance of procedural accountability as exercised by the European Parliament and EU Courts. We complement the empirical analysis with a normative discussion of how substantive accountability could potentially be rendered in both fields.     

Distribution of Chemical Phenotypes (Chemotypes) in European Agricultural Hemp (Cannabis sativa L.) Cultivars

In Europe, more than 50 approved cultivars of fiber hemp (Cannabis sativa L.) are in agricultural production. Their content of psychoactive tetrahydrocannabinol (THC) is legally restricted to <0.2% (%w/w in the dry, mature inflorescences). Cannabis strains with much higher THC contents are also grown, illegally or under license for drug production. Differentiation between these two groups relies on biochemical quantification of cannabinoid contents in mature floral material. For nonflowering material or tissue devoid of cannabinoids, the genetic prediction of the chemical phenotype (chemotype) provides a suitable method of distinction. Three discrete chemotypes, depending on the ratio of THC and the noneuphoric cannabidiol (CBD), can be distinguished: a “THC-predominant” type, a “CBD-predominant” type, and an intermediate chemotype. We present a systematic genetic prediction of chemotypes of 62 agricultural hemp cultivars grown in Europe. The survey reveals the presence of up to 35% B_T allele-carrying individuals (representing either a THC-predominant or an intermediate chemotype) in some cultivars—which is unexpected considering the legal THC limit of 0.2% THC. The fact that 100% of the seized drug-type seeds in this study revealed at least one B_T allele, reflects that plant breeding efforts have resulted in a fixation of the B_T allele in recreational Cannabis. To guarantee a sincere forensic application based on a genetic chemotype prediction, we recommend not to classify material of unknown origin if the samples size is below nine genetically independent individuals.     

European ruling parties’ electoral strategies and overseas enfranchisement policies

Emigrants’ ideologies and partisan attitudes may diverge from other voters’: overseas voters are ideologically self-selected, receive distinctive information about campaigns and have experiences abroad that are likely to shape their political views. Parties, anticipating these emigrant attitudes, can manipulate overseas voting availability to give the vote primarily to their own supporters. Alternatively, parties may expect newly enfranchised voters to provide electoral support in gratitude for the right to vote. To distinguish these separate processes, this project undertakes a case study of Turkey to trace a ruling party's strategic expectations as it makes overseas-enfranchisement decisions. To see how generalisable these results are, the study further extends to a statistical analysis of differences in vote choice between voters at home and abroad across all 23 European countries that report overseas votes separately, using an original dataset encompassing 121 elections. Both the case study and the statistical analysis suggest that emigrant-enfranchising parties tend to garner overseas voters’ support in a lasting way. This suggests that overseas enfranchisement most often appears to involve incumbent parties (correctly) expecting long-term ideological compatibility with their overseas nationals, not simply exchanging the franchise for short-term, transactional support.     

Does regulating remuneration affect the market value of European Union banks? Large versus small/medium sized banks

The aim of this paper was to analyze equity market reactions to the mandatory European Union regulation of remuneration policies in financial institutions. Using event study methodology, we investigated market reactions to the first European Directive on compensation policies after the financial crisis using a sample of 124 banks operating in the European Union. We divided the sample into two groups according to bank size considering four criteria: the US Dodd‐Frank Act 2010, the Liikanen Report 2012, Global Systemically Important Banks 2011, and the European Central Bank 2014. We found strong evidence of an average negative market reaction to compensation regulation. Moreover, this negative reaction is stronger for large banks than for small/medium sized banks.     

Hype,disillusionment and capacity problems: Turkish Cypriot media and the European Union

Since the failed 2004 Annan Plan referendum, a special relationship between the Turkish Cypriot community and the EU institutions has been established. Increased unofficial contacts have paved the way for a reinforced role of sub-state actors, including Turkish Cypriot media. The role of the Turkish Cypriot media in shaping public opinion towards the EU has been largely correlated with the course of the Cyprus negotiations. Weak institutionalisation has negatively affected the influence of the local media on advancing the sui generis relationship between the Turkish Cypriot community and the European Union, as well as Europeanisation in the northern part of Cyprus. This article applies the theoretical framework of horizontal and vertical Europeanisation to explore the impact of local media on the relations between the European Union and the Turkish Cypriot community.     

A European response to non-compliance: the Commission’s enforcement efforts and the Common European Asylum System

This article aims at systematically analysing the European Commission’s effort to enforce compliance with the Common European Asylum System (CEAS). In recent years, human rights organisations have increasingly denounced EU member states’ violations of the right to asylum and accused the EU of turning a blind eye to non-compliance with the CEAS. Although the primary responsibility to implement EU law lies with member states, the Commission ought to assist them and enforce violated legislation. How exactly does the Commission react to member states’ non-compliance with the CEAS? What can be inferred from these insights? By using infringement data, policy documents, and complementary interviews, the article scrutinises which of the available instruments are applied de facto. Subsequently, the findings are critically discussed, suggesting that the Commission prefers capacity-enhancing instruments and is rather tentative in using instruments to increase member states’ willingness to comply.     

Courts and the politics of secrecy: national security,human rights and the importance of supranational oversight

Abstract

The article examines the use of state secrecy in court litigation concerning alleged gross human rights violations committed in the struggle against terrorism, focusing specifically on cases of extraordinary rendition and comparing the performance of courts in the United States, in Italy and the European Court of Human Rights (ECtHR). The article explains that national courts have validated the assertion by national governments of the state secret privilege in litigation involving cases of extraordinary rendition, ensuring de facto immunity to individuals involved in gross human rights abuses. On the contrary, it underlines that the ECtHR has pierced the veil covering these ‘deep secrets’, undertaking a strict scrutiny of acts of extraordinary rendition to torture committed by governments in the name of national security. As the article argues, the success of the ECtHR can be explained by a number of reasons, including distance, time and institutional design. In conclusion, the case law of the ECtHR on secrecy and national security confirms the continuing importance of supranational courts as instruments of external oversight on the human rights practice of European states.