Hot-Stove Effects: The Impact of CEO Past Professional Experiences on Dividend Policy

By | March 26, 2020

Courtesy of Matthew Faulkner and Luis García-Feijóo In 2019, companies such as IBM, Apple, and Disney paid shareholder dividends of approximately $6 billion, $14 billion, and $3 billion respectively. What explains the decision to pay out dividends and the amounts involved? In a recent study, we focus on the impact of CEO past professional experience… Read More »

Does FOIA Foil the SEC’s Intent to Keep Investigations Confidential?

By | March 24, 2020

Courtesy of Braiden Coleman, Ken Merkley, Brian P. Miller, and Joseph Pacelli The Securities and Exchange Commission (SEC) has a long-standing policy to keep formal investigations confidential. In our recent article, we examine the extent to which compliance with the Freedom of Information Act (FOIA) provides investors with information about ongoing SEC investigations. We exploit… Read More »

Congress and the President Must Counteract the Wealth Inequality the Fed Will Create

By | March 23, 2020

Courtesy of Todd Phillips* This morning, the Federal Reserve announced it would begin open-ended quantitative easing, offering to buy “Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy.” This expands on its announcement last week that it’d buy up to $700 billion worth… Read More »

Market Crashes and Merger Completions

By | March 23, 2020

Courtesy of Davidson Heath and Mark Mitchell* Recent movements in financial markets illustrate the proverb: “The market takes the stairs up and the elevator down.” After rising steadily through 2019 and reaching a new all-time high of 3,386 on February 19, 2020, over the next seven trading days the S&P 500 fell by 432 points,… Read More »

Category: M&A

Coronavirus and Climate Change: Tragedies of the Horizon

By | March 18, 2020

Courtesy of Joseph Smith Can the current health crisis teach us about the looming environmental one?  I think so, particularly as a study of horizons in both time and space. While there is consensus among experts that climate change is real and its potential impact catastrophic or worse, there is also consensus that the worst-case… Read More »

Testimony of the Honorable Sarah Bloom Raskin Before the Senate Democrats’ Special Committee on the Climate Crisis

By | March 17, 2020

Courtesy of Sarah Bloom Raskin On Thursday, March 12, 2020, the Senate Democrats’ Special Committee on the Climate Crisis had a hearing on “The Economic Risks of Climate Change.” One of the witnesses, Sarah Bloom Raskin, provided the following testimony:   Chairman Schatz and members of the Committee, thank you for inviting me here to… Read More »

A World Without LIBOR: A New Financial Order?

By | March 16, 2020

Courtesy of Xing Huan, Gary J. Previts, and Antonio Parbonetti Introduction On June 27, 2012, news of Barclays being fined for manipulating the daily setting of the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (EURIBOR) flooded the media. Nearly eight years later, the transition away from LIBOR is still a work in… Read More »

Dealing with the Carbon Bubble: The Senate Select Committee on the Climate Crisis

By | March 12, 2020

Courtesy of Graham Steele  Introduction  Today, the Senate Select Committee on the Climate Crisis has convened a hearing about the potential financial risks from climate change. This hearing is the culmination of years of expert warnings about the risks of a growing carbon bubble that, like other asset bubbles, could result in stranded assets and… Read More »

Rolling Back Dodd-Frank: One Bite at a Time

By | March 11, 2020

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) ushered in the most substantial changes to the U.S. financial system since the Great Depression. The statute was 848 pages long and imposed an estimated 27,278 new restrictions—equal to 74 percent of the restrictions created by all other laws passed during the Obama administration combined!… Read More »