Digital Finance Platforms: Toward a New Regulatory Paradigm

The computers upon which we work all have operating systems that we generally ignore. We mainly deal with the apps that run on these systems. Email, ubiquitous as it is, is merely an app. Nothing works without the system in the background, and because it works so well, we tend to neglect it. The same […]

SPAC of Everything: Challenging Financial Regulation in Times of Crisis

By the end of 2020, more than 240 special-purpose acquisition companies (SPACs) listed in the U.S. (on NASDAQ or the NYSE), raising a record $83 billion, according to SPAC Research. SPACs have already surged past last year’s record in the first quarter of 2021, raising $98.1 billion. These numbers are eye-catching. In 2007, the average […]

The Initial and Subsequent Credit Rating Effects of Acquisitions

The financial system has developed several mechanisms to align interests of managers and investors. Our study focuses on one such mechanism—credit rating agencies. The financial crisis of 2008 highlighted the importance of well-functioning credit rating agencies. The failure of credit rating agencies during the crisis was a focus of the Dodd-Frank Act of 2010 (“Dodd-Frank”), […]

M&A Role in the VC Ecosystem: A View on Possible Antitrust Implications

Several proposals in the House and Senate are aimed at substantially curbing M&A (Mergers and Acquisitions) activity as part of changes focused on antitrust. In a recent study, titled “Mergers, Antitrust, and the Interplay of Entrepreneurial Activity and the Investments That Fund it”, we shed light on the possible implications to startup-driven innovation, in general, […]

Are Foreign Donors Good Monitors?

Economic and accounting literature has long found that foreign investments provide a multitude of benefits to local stock markets and economies. Foreign inflows to for-profit firms are found to harvest not only capital but also managerial and marketing skills in addition to business connections and human resource development. For-profit foreign institutional investors have also been […]