Corner-Cutters: Personally Tax Aggressive Executives and Corporate Regulatory Violations 

By | May 31, 2023

In a new study, we investigate the relationship between executives who exploit their position in the firm to reduce their tax liabilities (i.e., “personally tax aggressive” executives) and corporate violations across various activities, including workplace safety and environmental regulations. Specifically, we examine executives who consistently gift corporate stock at or near the maximum of the… Read More »

Interdependencies in Crypto Ecosystems: Drivers, Implications and Policy Responses 

By | May 24, 2023

Crypto assets and crypto-related financial activities are generating considerable discourse among global regulators and financial supervisors. As key actors in the emerging alternative finance ecosystems, crypto and its market actors have drawn increasing attention to their potential policy implications, particularly on financial integrity, consumer protection and financial stability. This is primarily because crypto ecosystems remain… Read More »

Comparing Capital Allocation Efficiency in Public and Private Equity Markets 

By | May 22, 2023

At its core, the economy’s essential role is to allocate resources toward the most productive investment prospects. Traditionally, stock markets have been particularly efficient at allocating capital to firms with the most promising investment projects. In recent times, however, private equity (PE) markets have experienced significant expansion and have provided more capital through private than… Read More »

The IRA’s Greenhouse Gas Reduction Fund: A Discussion of Impacts & Recommendations for Implementation 

By | May 19, 2023

In August 2022, President Biden signed the Inflation Reduction Act (IRA), a landmark piece of legislation designed primarily to help the United States decarbonize while reviving domestic manufacturing. One of the most important novel programs in the IRA is the Greenhouse Gas Reduction Fund, or GGRF. The GGRF is a $27 billion pool of grant… Read More »

The Contagion Risk of Cryptocurrency Markets 

By | May 18, 2023

Since the inception of Bitcoin in 2008, crypto assets, have long been perceived as one of the riskiest assets.1 Unlike traditional assets, many cryptocurrencies are decentralized, limited in supply, and difficult to value, leading to speculation, high divergence of opinion, and extreme price volatility. These features, combined with the rapid growth of crypto markets during… Read More »

ETF Rebalancing, Hedge Fund Trades, and Capital Markets

By | May 16, 2023

Over the past decade, exchange-traded funds (ETFs) have transformed the investment industry with total net assets skyrocketing to $6.73 trillion by February 2023. As a passive investment product, ETFs track a particular index and aim to replicate its performance. To maintain low tracking error, ETFs rebalance portfolios following underlying index reconstitutions. With the rise in… Read More »

A Big Picture Overview of the SEC’s New Investment Adviser Marketing Rule 

By | May 8, 2023

The SEC recently made waves in the long-established investment adviser regulatory landscape, governed by the Investment Advisers Act of 1940 (the “Act”), by adopting the new investment adviser marketing rule, which became binding on advisers in November 2022. Recognizing the “outdated and patchwork regime on which advisers have relied for decades,” the SEC passed the… Read More »

Antitrust Risk and Voluntary M&A Disclosure 

By | May 4, 2023

Antitrust laws in the U.S. prohibit firms from engaging in anticompetitive mergers and acquisitions (M&As) that may harm consumer welfare. While the merger control procedure requires firms to notify the Department of Justice (DOJ) and the Federal Trade Commission (FTC) of prospective M&As, many deals are exempt from such a requirement. Consequently, firms voluntarily disclosing… Read More »

Long-Run IPO Performance and the Role of Venture Capital 

By | May 1, 2023

IPOs only offer a partial exit to Venture Capitalists (VCs). When a VC-backed company goes public, the VC typically refrains from selling all shares at the IPO. Due to the high levels of information asymmetry at the IPO, selling a large fraction of the holdings sends a negative signal concerning the company’s valuation. Iliev and… Read More »