Director Networks and Firm Value

By | May 22, 2020

Courtesy of Tor-Erik Bakke, Jeffrey Black, Hamed Mahmudi, and Scott Linn Are the professional networks of corporate directors valuable? More connected directors may have better information and more influence, which can increase firm value. However, directors with larger networks may also be busy or spread value-decreasing management practices. To identify the effect of director networks… Read More »

“Basel V” Should Target the “Green Swan”

By | May 21, 2020

Courtesy of Mete Feridun Recently, the Bank for International Settlements (BIS) coined the term “green swan” to refer to the tail risks posed by climate change to financial stability. Although inspired by Nassim Nicholas Taleb’s “black swan,” the moniker of unexpected risks, the BIS argues that the green swan is hardly similar to the black… Read More »

The New Geographies of Corporate Law Production

By | May 20, 2020

Courtesy of Dionysia Katelouzou and Peer C. Zumbansen Writing about the past trajectories and future prospects of corporate law production amidst the COVID-19 crisis presents several challenges, above all with regard to motivation and justification. Should reflections on how in the past, companies have been run, and in the future, might be run, be of… Read More »

The Effect of Foreign Competition on Corporate Tax Avoidance

By | May 19, 2020

Courtesy of Nader Atawnah, Balasingham Balachandran, Huu Nhan Duong, Jeffrey Pittman, and Edward Podolski The US Federal government deficit totaled $984 billion in 2019, representing 4.7% of GDP. Aggressive tax evasion and avoidance strategies by corporations are one contributing factor to this shortfall. By some accounts, profit shifting and tax evasion strategies reduce the IRS’s… Read More »

The Death of Trust Across the Finance Industry

By | May 18, 2020

Courtesy of Peter Limbach, P. Raghavendra Rau, and Henrik Schürmann The financial sector plays a crucial role in a country’s economic development. For example, better developed financial systems are associated with faster economic growth, increased levels of technological innovation, and reduced poverty. A well-functioning financial system depends on the reliability of contracts and contractors. This… Read More »

Comments to the Climate-Related Market Risk Subcommittee under the Market Risk Advisory Committee (MRAC) of the Commodity Futures Trading Commission (CFTC)

By | May 13, 2020

Courtesy of Lawrence Baxter, Mercy B. DeMenno,  Lee Reiners, and Joe Smith The following letter was submitted by the Global Financial Markets Center on May 9, 2020, to the Commodity Futures Trading Commission (CFTC) in response to the CFTC’s request for public comment on topics and issues being addressed by the Climate-Related Market Risk Subcommittee… Read More »

Financing the Pandemic: Saddling People With Debt Versus Helping Them With Money

By | May 12, 2020

Courtesy of Pamela Foohey, Dalié Jiménez, Christopher K. Odinet As the United States enters the third month of the coronavirus pandemic, states are implementing plans for phasing out shelter-in-place orders and re-opening non-essential businesses. The past months have brought widespread layoffs and furloughs. By the end of April 2020, the unemployment rate soared to 14.7%… Read More »

From Misinformation to Hidden Economic Agendas: The Coronavirus Lawsuit Against China

By | May 7, 2020

Courtesy of Robert Gatter & Ana Santos Rutschman On April 21st, the State of Missouri became the first state to sue China, Chinese government-run entities, including the Wuhan Institute of Virology, and the Chinese Communist Party for damages related to Covid-19. The complaint claims that Chinese authorities caused “enormous economic disruption” to governments, corporations, and… Read More »

Social and Economic Distancing

By | May 6, 2020

Courtesy of Selman Erol and Guillermo Ordonez The COVID-19 pandemic has reminded us of the effectiveness of social distancing practices, voluntary and mandated, to reduce disease transmission in the presence of highly contagious infections. Even though COVID-19 has a relatively low fatality rate, slowing down the rate of transmission is critical to avoid overwhelming the… Read More »