Tag Archives: finance

Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds 

By | January 12, 2024

In response to the escalating demand for sustainable investment options, the mutual fund industry is actively integrating sustainability into investment strategies and has introduced numerous financial products focused on sustainable investing. Consequently, mutual funds in capital markets can generally be categorized into two groups: self-identified ESG funds and non-ESG funds. Notably, over 70% of the… Read More »

Financing Green Transition: Bank-Nonbank Partnership  

By | January 11, 2024

At their current levels, sustainable investments are considerably below the levels needed to achieve decarbonization and the targets of the Paris Agreement. The World Economic Forum suggests that, to meet these goals, investments in nature-based solutions must quadruple by 2050, resulting in an annual investment exceeding $536 billion. Several strategies have been proposed, emphasizing the… Read More »

Corporate Sustainability Reporting And Blockchain  

By | January 10, 2024

Fostering sustainability in financial and economic activity has become one of the key priorities of policymakers and regulators around the world. In this direction, the recently enacted Corporate Sustainability Reporting Directive (CSRD)1 is a cornerstone of the European Union’s policy to achieve a sustainable economy, environment, and society. Through greater disclosure and transparency, the CSRD… Read More »

Environmental Externalities of Corporate Culture: Evidence from Firm Pollution 

By | January 8, 2024

In recent decades, there has been a marked increase in concerns about the adverse environmental impacts of corporate production activities. This heightened awareness stems from the growing threats posed by climate change, resource depletion, and ecological degradation. As companies continue to prioritize profit maximization and shareholder value, their toxic emissions have come under scrutiny. These… Read More »

The Real Problem from Trading by Politicians: Information Sharing that Erodes Market Efficiency 

By | December 22, 2023

Trading by politicians is increasingly scrutinized, with recent legislation prohibiting trading by politicians being introduced in Congress. There have been numerous scandals involving insider trading, such as trading prior to COVID lockdowns or trading ahead of government contract awards or FDA reports. Some politicians, however, claim that restrictions on their trading violates their economic freedom… Read More »

Migration of Global Supply Chains:  A Real Effect of Mandatory ESG Disclosure 

By | December 21, 2023

The rising tide of environmental, social, and governance (ESG) awareness among many stakeholders is reshaping the corporate information environment. These stakeholders, driven by a desire for transparency, are demanding more detailed ESG-related information to evaluate corporate practices better. However, one significant limitation is the inconsistency in ESG disclosures among different jurisdictions regarding measurement, scope, and… Read More »

Non-Financial Liabilities and Effective Corporate Restructuring 

By | December 14, 2023

The system for managing corporate insolvency varies in fundamental ways between countries, with important effects on economic outcomes. Chapter 11 of the U.S. Bankruptcy Code forms the legal basis of the successful American regime, which can handle distress in a formal process without liquidating assets, closing businesses, and with limited job losses. Many countries aim… Read More »

Business Succession Planning Using a Purpose Trust

By | December 13, 2023

With nearly 2.7 million U.S. businesses owned by baby boomers,1 succession planning for these businesses has become critically important. For some owners, the next generation of the family has both the interest and the ability to continue to manage the business. For other owners, the sale of the business to a third party will be… Read More »

Are public health policies associated with corporate innovation? Evidence from U.S. nonsmoking laws 

By | December 12, 2023

Fostering a culture of innovation is paramount for the sustained growth of the global economy. Achieving innovative outcomes, however, is not easy. Prior research has extensively examined the effect of various regulations, firm characteristics, and incentive structures that are designed to increase innovation, many of which have limited effect. We add to this research by… Read More »

After the “Partner Run”: the Dewey & LeBoeuf Diaspora 

By | December 11, 2023

Law firms are distinctive creatures. The worker-owned governance structure, mandated by law’s professional responsibility rules, accidentally enables a distinctive type of business collapse known as a “partner run.” Partner runs are total liquidations, never reorganizations, and deeply feared by any law firm of scale. In my recent paper, I test whether a partner run can… Read More »