Courtesy of Josef Schroth The Global Financial Crisis exposed taxpayers to potential losses from bank failures and significantly disrupted financial intermediation. A natural question arises from these experiences: Should regulators require banks to hold more capital and, if so, in what form? Higher minimum requirements reduce losses to stakeholders in case of bank failures but may constrain… Read More »
Courtesy of Shawn Huang Organizational outcomes have long been known to be, at least in part, determined by executives’ idiosyncratic characteristics. Prior research shows that Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) uniquely impact corporate practices and operations. Peering into these effects, recent studies examine executive heterogeneity with respect to aspects such as… Read More »
Courtesy of Ali Akyol Rule 14a-8 of the Securities Exchange Act of 1934 allows shareholders to submit non-binding proposals demanding a vote on certain corporate matters at annual meetings. In theory, improving shareholder rights reduces agency costs associated with the separation of ownership and control. Shareholder proposals, thus, could reduce agency costs by increasing the… Read More »
On June 18th, Facebook released a white paper and additional documentation that describe a new cryptocurrency, called Libra, which will be governed by the twenty-eight member Libra Association (the “Association”). Shortly thereafter, the Senate Banking Committee and the House Financial Services Committee announced they would hold hearings to look into Libra and Facebook’s involvement; these… Read More »
Courtesy of Julia von Buttlar* Artificial intelligence (AI) technologies are increasingly being used in a variety of fields, none more so than the financial industry. AI offers great opportunities; it can enable companies to automate manual processes and meet their regulatory requirements at a higher speed with a lower error rate and less effort. For… Read More »