New Kids on the Block: The Effect of Generation X Directors on Corporate Performance

By | April 16, 2020

Courtesy of Zhaozhao He, Mihail Miletkov, and Viktoriya Staneva Generational identity can influence many aspects of our life, from family and work to political views and consumer behavior. Countless books and articles have been written on the subject. For example, a simple Google Scholar search for the term “Generation X,” which is the focus of… Read More »

Defining Appraisal Fair Value

By | April 14, 2020

Courtesy of Ben Lucy Appraisal is a statutory mechanism that allows dissenting shareholders of Delaware merger targets to petition the Court of Chancery for a judicial determination of the “fair value” of their shares. In the 2010s, appraisal rose from relative obscurity to the front lines of high-stakes commercial litigation and the front pages of… Read More »

Category: M&A

The Economic Implications of National Quarantines

By | April 13, 2020

Courtesy of Christos A. Makridis and Jonathan Hartley Although academic research on the COVID-19 pandemic began with a slow start, policymakers were grappling with challenges about the economic effects of the national containment strategy. Since real-time macroeconomic indicators will take some time to come in, we published a policy brief on April 6thbased on research… Read More »

Good for Managers, Bad for Society? Causal Evidence on the Association Between Risk-Taking Incentives and Corporate Social Responsibility

By | April 9, 2020

Courtesy of Michael Mayberry Shareholders are increasingly interested in corporate social responsibility (CSR). However, as with nearly all corporate actions, shareholders are not the decision makers. Managers are. Therefore, shareholders must rely on compensation to incentivize managers towards the level of CSR they desire. To date, researchers know very little about how compensation incentivizes executives… Read More »

Valuing ESG: Doing Good or Sounding Good?

By | April 8, 2020

Courtesy of Bradford Cornell and Aswath Damodaran Using criteria based on environmental, social and governance (ESG) considerations has become an increasingly important aspect of investment decision making, particularly for high profile institutional investors. Investors, including some of the largest institutions, have added social responsibility criteria to their investing screens, and it was estimated that there… Read More »

COVID-19 Outbreak Requires Prompt and Innovative Regulatory Response

By | April 7, 2020

Courtesy of Mete Feridun The COVID-19 outbreak has resulted in a significant and sudden decline in economic and financial activity across the world, bringing back bad memories of the 2007-2008 global financial crisis. There are indeed strong similarities between the current COVID-19 pandemic and the 2007-2008 crisis, particularly in terms of capital market dysfunction, uncertainty,… Read More »

Feverish Stock Price Reactions to COVID-19

By | April 6, 2020

Courtesy of Stefano Ramelli* and Alexander F. Wagner** The outbreak of COVID-19 took the world economy by surprise. The topic ‘‘infectious diseases’’ was ranked number 10 in terms of impact in the World Economic Forum’s Global Risk Report 2020, published on January 15, 2020, but was considered quite unlikely. Instead, most corporate decision-makers and politicians… Read More »

What Have We Learned So Far About ETFs In The COVID-19 Crisis?

By | April 3, 2020

Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisis.[1] Over forty percent of the trading volume during the mid-March selloff was in ETFs (multiple times the percentage in January), making them the “tool of choice” for many crisis traders.[2] Using ETFs to trade through a crisis makes sense – they offer high… Read More »

LIBOR Benchmark Reform: An Overview of LIBOR Changes and the Impact on Financial Services, Pricing, and Risk

By | April 1, 2020

Courtesy of Nicholas Burgess  The financial crisis of 2008 fundamentally altered the interbank market and the way banks fund themselves. Banks and regulators alike recognised the risks inherent in unsecured borrowing and lending between banks. Consequently, the London Interbank Offered Rate (LIBOR) derived from the London interbank unsecured lending market, was revealed to suffer from… Read More »

Taxes in the Time of Coronavirus: Is it Time to Revive the Excess Profits Tax?

By | March 30, 2020

Courtesy of Reuven S. Avi-Yonah A recent New York Times headline summarizes one of the most significant economic impacts of the current pandemic: “Big Tech Could Emerge From Coronavirus Crisis Stronger Than Ever.” At a time when most American citizens and businesses are suffering catastrophic economic damage from the Coronavirus recession, some corporations—such as Amazon, 3M,… Read More »