Developing a Novel Conceptual Tax Regulatory Framework for Crypto Tokens  

By | January 29, 2024

The notions behind decentralized virtual currency were developed over a long period of time and decades before the introduction of Bitcoin, the first cryptographic virtual currency, in 2008. To a certain extent, they express the idea of “denationalization of money,” which represents a significant part of the work of the Nobel laureate Friedrich Hayek from… Read More »

Can Elon Musk’s SpaceX Raise More Equity Capital Without Going Public?

By | January 25, 2024

Elon Musk’s SpaceX, a pioneering company in reusable rockets and spacecraft design, continues to rank as one of the most valuable private companies in the world. According to Bloomberg, its valuation nears 180 billion dollars, over 100 times that of a “unicorn”— a private company that is valued at over one billion dollars. To date,… Read More »

Clawback provisions and insider trading profits 

By | January 23, 2024

The issue of agency conflicts between shareholders and managers remains a prominent challenge. This struggle often manifests through rent extraction, where managers exploit opportunities for excess pay or insider trading profits. Scholars have explored various mechanisms to mitigate these conflicts, with one notable approach being the implementation of clawback provisions. This post delves into the… Read More »

Local boy does good: The effect of CSR activities on firm value 

By | January 22, 2024

In 2019, approximately 200 CEOs from the Business Roundtable made headlines by declaring a shift in corporate priorities. They asserted that companies should not focus solely on maximizing shareholder gains but should also consider the well-being of employees, environmental sustainability, and fair treatment of suppliers. Thus, a natural question arises: does this commitment to social… Read More »

Regulatory Transparency and Regulators’ Effort: Evidence from Public Release of the SEC’s Review Work 

By | January 18, 2024

Regulators face near-zero competition and exit threats. Thus, agency problems are more likely to occur when information asymmetry exists between regulators and constituents (Stiglitz 1999; Coffee 2007). If information asymmetry exacerbates moral hazard in the regulatory context, then the question is whether regulatory transparency can reduce moral hazard and improve regulator accountability. After all, regulators… Read More »

How can tax rules shape the global market for corporate control and overall economic growth? The case of anti-loss trafficking rules

By | January 17, 2024

2021 saw a remarkable surge in the global market for corporate control, with a record number of 65,000 mergers and acquisitions (M&A). Among other factors, tax rules play an important role in shaping the probability and structure of M&A transactions. In 2008, the temporary suspension of limitations on tax loss transfers led to a substantial… Read More »

Regulating Choice Architecture with Behavioral Audits

By | January 16, 2024

Regulation of behavioral science is coming. The Biden Administration has committed to tackling “junk fees” which emerge from deceptive, online behavioral design practices, as has the Federal Trade Commission. In the UK, the Competition and Markets Authority (CMA) is increasingly concerned with harms arising from ‘behavioral design’ and ‘choice architecture’. So too is the European… Read More »

Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds 

By | January 12, 2024

In response to the escalating demand for sustainable investment options, the mutual fund industry is actively integrating sustainability into investment strategies and has introduced numerous financial products focused on sustainable investing. Consequently, mutual funds in capital markets can generally be categorized into two groups: self-identified ESG funds and non-ESG funds. Notably, over 70% of the… Read More »

Financing Green Transition: Bank-Nonbank Partnership  

By | January 11, 2024

At their current levels, sustainable investments are considerably below the levels needed to achieve decarbonization and the targets of the Paris Agreement. The World Economic Forum suggests that, to meet these goals, investments in nature-based solutions must quadruple by 2050, resulting in an annual investment exceeding $536 billion. Several strategies have been proposed, emphasizing the… Read More »

Corporate Sustainability Reporting And Blockchain  

By | January 10, 2024

Fostering sustainability in financial and economic activity has become one of the key priorities of policymakers and regulators around the world. In this direction, the recently enacted Corporate Sustainability Reporting Directive (CSRD)1 is a cornerstone of the European Union’s policy to achieve a sustainable economy, environment, and society. Through greater disclosure and transparency, the CSRD… Read More »