A private foundation is an independent legal entity that provides a vehicle for charitable giving. Private foundations play an increasingly important role in modern society through their support of public charities and their own philanthropic programs. In tax year 2016, private foundations had roughly $900 billion in total assets and distributed nearly $65 billion to… Read More »
For the last year, participants in the growing financial technology (FinTech) sector have been anticipating new regulation for digital assets. On March 9, 2022, President Biden signed an executive order to begin the process of developing a new supervisory regime that will help the United States be a leader in the space and resolve the challenges associated… Read More »
A large literature has highlighted differences in bankruptcy laws across countries and the way these laws impact financial reorganization. While the resolution of financial distress varies from country to country, a distressed firm typically faces two alternatives when it comes to rearranging its capital structure: (1) a formal court-supervised bankruptcy procedure under bankruptcy law or (2) an informal out-of-court… Read More »
In the modern information economy, an increasing amount of information about capital market participants is available. Transparency regulation has facilitated this type of information. For example, short positions in Europe require unmasking the identity of the trader. Although prior research has studied the impact of revealing trader identities on capital markets, little is known about… Read More »
I recently had the opportunity to testify before the U.S. Senate Committee on Banking, Housing and Urban Affairs in a hearing on “Understanding the Role of Digital Assets in Illicit Finance.” My testimony focused on the ways cryptocurrency is increasingly being used to facilitate existing and new crimes, as well as the challenges that cryptocurrency… Read More »
Does a firm’s initiative for Environmental, Social, and Governance (ESG) increase firm value? In our recent working paper, we investigate how a firm’s commitment to ESG can increase (or decrease) the firm value using closed-end funds (CEFs) as an empirical laboratory. In particular, we focus on the role of credible commitments to ESG in determining the… Read More »
Given the emphasis on Environmental, Social, and Governance (ESG) in the media and among the finance community, one could easily believe that capital markets are a major contributor to the goal of limiting global warming. We argue this perception is largely false; a narrative strongly pushed by the finance industry to highlight green initiatives and,… Read More »
A substantial body of academic literature examines the personal trades of corporate officers and directors in their company shares, commonly referred to as “insider trades.” Much of the early work, either in the aggregate or in the cross-section, ignores the likelihood that an insider’s motivations or trading patterns are likely to change over time. In… Read More »
The consumer data right (CDR) is being rolled out progressively across most of Australia’s economy. CDR puts people in charge of the data that businesses hold on them and does so in a way that is simple for consumers. Within five years, it should transform commerce, promote competition in many sectors, and simplify daily life. … Read More »
Shareholders are widely perceived as the best advocates of stakeholders’ interests. We can dub this phenomenon shareholders stakeholderism: the pursuit of stakeholders’ good by shareholders. This leads us to wonder whether the pursuit of stakeholders’ good by shareholders is just a perception; or has something changed? Industry and academics seem to suggest that the perception is… Read More »
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