Does CSR Engender Trust? Evidence From Investor Reactions to Corporate Disclosures

Growth in corporate social responsibility (CSR) practices is an undeniable fact of modern business. 90% of S&P 500 firms published a corporate sustainability report in 2020, up from merely 20% in 2011. As more and more firms adopt CSR practices, a key question emerges: how do such activities impact investor perceptions of firms? Proponents of […]

Mutual Fund Liquidity Management, Stock Liquidity, and Corporate Disclosure

“Lessons from COVID-19: Liquidity Risk Management is Central to Open-Ended Funds.” —BlackRock (2020) “Liquidity risk management programs (LRMPs) will be a focus area for the Division.” —SEC (2021) Mutual fund liquidity management has become increasingly important since the financial crisis of 2007–2009, during which regulators and practitioners raised concerns about whether mutual fund portfolios had […]

Should a Company Reveal That it is Evaluating “Strategic Alternatives”?

Seeking “strategic alternatives” is industry jargon for considering a potential sale or merger. During this process, the company gauges interest from potential acquirers. From 1990 to 2018, there were more than 1,200 announcements made by public companies revealing that they were reviewing strategic alternatives (examples here and here). Before deciding whether to disclose this information voluntarily, via a […]