Author Archives: Guest Blogger

Career Experience and Executive Performance: Evidence from Former Equity Research Analysts

By | July 18, 2019

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 »

How Does the Market React When Shareholders Lose Power?

By | July 9, 2019

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 »

Supervisory Benchmarks and Artificial Intelligence: A View from Germany

By | July 1, 2019

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 »

Can Corporate Governance Prevent Future Financial Crises?

By | June 14, 2019

Courtesy of Dina El Mahdy  Over a decade ago, the US market and global economy experienced a financial crisis that erased $8 trillion in stock market wealth and led to unprecedent government intervention in financial markets. This crisis was preceded, less than ten years prior, by the dot-com bubble, which saw several companies fail due… Read More »

The Expanding Regulatory Perimeter – Crypto-Asset Trading

By | May 30, 2019

Courtesy of Barbara C. Matthews (JD/LLM ’91) “Hi!  I’m from the government.  I’m here to help.” The regulatory perimeter regarding crypto-assets continues to expand.  The latest move comes from the International Organization of Securities Commissions (IOSCO) which released for comment on 28 May, 2019 suggested regulatory oversight standards[1] to govern crypto-asset trading platforms (the “IOSCO… Read More »

When Tech Meets Money: the Central-Bank Digital Currency

By | May 22, 2019

Courtesy of Marcelo M. Prates Not long ago, money was simple, central banks were all but invisible, and banks seemed like an inevitable nuisance. Money consisted of the coins and notes carried in wallets, or the checkbook in the desk drawer. Central banks were poorly understood institutions, entrusted with the mystical power to print money.… Read More »

A Typology for Diagnosing and Remedying Regulatory Capture in Financial Regulation

By | May 7, 2019

Courtesy of Justin Rex The study of regulatory capture has a long history across various disciplines. Yet, scholars still disagree on its definition and pervasiveness. This post proposes a typology for organizing literature on regulatory capture under a few key dimensions to help scholars and practitioners better diagnose capture and choose appropriately tailored policy responses.… Read More »

Securities Fraud: Not Just for Policing Financial Markets

By | May 2, 2019

Courtesy of Joseph T. McClure In the wake of the Facebook-Cambridge Analytica scandal, data privacy emerged as a hot-button issue that politicians of all ideological persuasions will add to their stump speeches before the 2020 elections. It also appears likely to join issues such as climate change, gun violence, and workplace sexual misconduct as the… Read More »

Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings

By | April 30, 2019

Courtesy of Paul P. Momtaz Token Offerings or Initial Coin Offerings (ICOs) are a rapidly growing market, with more than 4,500 transactions in 2018 alone. However, there is also substantial fraudulent activity spurred by the absence of regulation. My new paper, Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings, explores a very subtle, hard-to-track… Read More »

High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »