Courtesy of Victor Wang and Betty Xing Information plays a crucial role in well-functioning stock markets, and corporate managers often possess private information about their firms’ performance and prospects. The rapid evolution of the COVID-19 pandemic and the enormous uncertainty associated with it has led firms into uncharted territory. What information can corporate managers share… Read More »
Courtesy of Andy Green, Tyler Gellasch, Erik Gerding, Lev Bagramian, Urska Velikonja, Rachel Curley, Renee Jones, and Divya Vijay The following letter was submitted by the authors on May 26, 2020, to the Securities and Exchange Commission (SEC) Chairman Jay Clayton and filed in response to selected rulemakings (listed in the appendix below). SEC proposed… Read More »
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 »
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 »
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 »
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 »
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 »
Courtesy of Seth Davis & Gregory Shaffer What do asset protection trusts in the Cook Islands and Alaska, the UN Environment Program’s “Fiduciary Duty for the 21st Century” report, and the Mitsubishi UFJ Trust and Banking Corporation have in common? They are all examples of transnational fiduciary law.[1] Fiduciary law is a global phenomenon. It… Read More »
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 »
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 »
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