Recently, as I reviewed my pension plan, I wanted to allocate funds to sustainable products, such as mutual funds with ESG characteristics (Environmental, Social, and Governance). However, navigating the world of sustainable finance is a complex and challenging task as sustainability declarations are lengthy and filled with jargon. In such a complex environment, investors’ knowledge… Read More »
CEO compensation in global companies is increasingly tied to ESG objectives that by their very nature are soft, qualitative, and potentially hard to verify. Are ESG metrics another manifestation of CEO power? In principle, contracts that link executive compensation to shareholder wealth should be the most effective way to align managers’ incentives with shareholder interests.… Read More »
Gender quotas, independence mandates, and diversity requirements for corporate boards force companies to vie for qualified directors by offering a range of financial and non-financial perks. Competition for a limited pool of qualified candidates forces companies to increase the compensation they offer to these candidates and dig deeper into the shareholders’ pockets. Thus, the compliance… Read More »
The special purpose acquisition company (SPAC) is a cash shell listed on a public market with the sole purpose of merging with an operating company, thereby bringing that operating company on to the public market. The SPAC, therefore, represents an alternative public listing route to a traditional initial public offering (IPO). The market for SPACs… Read More »
Previous crypto securities cases have been misrepresented as evidence of the adoption of the “separation theory”, a concept highlighted by the Honorable Judge Amy B. Jackson (SEC v. Binance). In her ruling regarding Binance’s motion to dismiss, Judge Jackson said: “[the] Court finds it necessary to distinguish between the digital coins themselves and the offers… Read More »
Is the crypto token sold as a security, the security itself? This question has arisen in both Congress and court cases and is ripe for discussion. “Separation theory” refers to the notion that the crypto token itself is separate from the security and until recently, this theory had not been adopted by any judge in… Read More »
Companies cannot waive their right to file for bankruptcy or contractually limit their rights once in bankruptcy. Without a collective, compulsory system like bankruptcy, creditors would race each other to the courthouse to collect on the remaining assets of a dying company. This process would hasten the company’s demise, waste value, harm some creditors, and… Read More »
In many asset, financial, and service markets, trade information is generally not available to interested buyers. For example, a number of securities traded in over-the-counter (OTC) markets lack transparency regarding both the frequency and price of past trades. Dealers are under no obligation to disclose this information about their products to interested buyers. The same… Read More »
We’ve all heard the stories – corporations engaging in accounting shenanigans to meet Wall Street’s relentless earnings expectations. But in our recent study, we uncover a subtle yet insidious way firms can boost their reported bottom line: selling off their patent portfolios at the 11th hour. The Accounting Loophole Incentivizing Patent Sales Our investigation begins… Read More »
In December 2022, JPMorgan Chase sued Charlie Javice, the CEO of Frank (a student financial aid start-up), alleging that Javice falsified data to justify the $175 million acquisition price that Chase paid for the company. Throughout the due diligence process, Javice portrayed that Frank served millions of users and maintained a database of related user… Read More »
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