Falling Short: The Unintended Consequences of the Corporate Tax Cuts

Since the enactment of the Tax Cuts and Jobs Act (“TCJA”) in 2017, changes to the United States system of corporate taxation has gained more attention among policymakers and the public. Promised to be the solution to a stagnant economy, the TCJA was the largest tax overhaul in decades. My recent article, “Falling Short: The […]

A comparative comment on the banking bailout literature

In the past decade, the literature on banking, financial law and regulation, the most recent financial crisis, financial stability, and bank insolvency has grown substantially. However, there is still a strong need for additional legal analysis of these topics for several reasons.1 First, much of the scholarly work pertains to the area of finance and economics and does not directly address legal considerations. Second, given the overwhelming […]

Corporate Social Responsibility and Corporate Financial Performance: The Moderating Role of Absorptive Capacity

On different occasions, scholars have suggested that stakeholder theory is bound up with corporate social responsibility (CSR). An extension of the CSR construct is corporate social performance (CSP). In general, the CSR/CSP analyses have usually tried to understand why managers or firms engage in CSR. In this regard, the basis to formulate a CSR and […]

Big Shoes to Fill: CEO Turnover and Pre-Appointment Firm Performance

When Tim Cook replaced Steve Jobs as CEO of Apple in 2011, the company’s employees — along with shareholders and the rest of the world — wondered if he could fill his larger-than-life predecessor’s shoes and maintain the company’s momentum. While the business press continues to pay attention to CEOs having the pressure to catch up with the heightened firm performance left behind by a rising star, there […]

Does sustainable investing deprive unsustainable firms of fresh capital?

As evidenced by the strong growth in asset managers and owners subscribing to the Principles for Responsible Investment, a global initiative that aims to create a more sustainable global financial system, investors increasingly care not only about their financial performance, but also about the sustainability characteristics of their investments. Investors also increasingly work to align their […]

Bankruptcy, Bailout, or Bust: Early Corporate Responses to the Business and Financial Challenges of COVID-19

As the nation grapples with the profound human tragedy of COVID-19, U.S. companies have been feeling the business and economic impacts of the global public health crisis. Many companies have already filed for bankruptcy protection, while others have warned that they may need to liquidate or restructure. Business leaders from a wide range of industries […]

Aligning the Financial System and Capital Markets with Long-Term Economic and Public Interest Outcomes

The following post is the author’s combined oral and written testimony presented to the U.S. House Committee on Financial Service’s Subcommittee on Investor Protection, Entrepreneurship and Capital Markets for a hearing entitled, “Climate Change and Social Responsibility: Helping Corporate Boards and Investors Make Decisions for a Sustainable World” on Thursday, February 25, 2021. A video […]

The Source(s) of Corporate Harm

How do corporations cause harm? Courts and legislatures have long subscribed to a simple, straightforward approach: “[T]he corporation touches the public only by the hands of [its] agents and servants.” In other words, according to the law, there is ultimately only one source of corporate harm: individual employees.   In a forthcoming article, I urge reconsideration of that centuries-old legal assumption. The law’s approach would surprise many non-lawyers […]

Continuing Uncertainty After Colorado Compromise: The Limited Impact of the Avant-Marlette Settlement on True Lender Risk for Nonbank-Bank Partnerships

In August 2020, two nonbank fintechs—Avant and Marlette Funding—and their partner banks— WebBank and Cross River Bank—reached a “landmark settlement” with Colorado regulators (the “Settlement”) to determine who is the “true lender” of loans originated under their partnerships. Under the Settlement, the nonbank-bank partnerships are permissible under Colorado law, provided that they comply with the terms of a Safe Harbor that is […]

Crackdown on Tax Avoidance Could Impede Corporate Innovation

Corporate tax avoidance has significantly increased at both the state and federal level over the past three decades. As an important tax avoidance strategy, U.S. firms extensively use intangible assets to shift taxable income from high-tax areas to low-tax areas to reduce income taxes. Therefore, patents and other intangible assets create significant tax benefits for firms.   Governments […]