Cross-Border Investments in Private Firms: The Benefits of Comparability for Foreign Investors 

By | November 27, 2023

The harmonization of reporting standards has come a long way since the mandatory adoption of International Financial Reporting Standards (IFRS) for public firms in the European Union (EU) and other countries in 2005. In our recent paper, we focus on private firms and examine whether an increase in accounting comparability of local financial reporting practices… Read More »

Regulating ESG Investing in the US and EU

By | November 7, 2023

In my new paper for the Climate Risk Disclosure Lab, I examine the different approaches to regulating Environmental, Social, and Governance (ESG) investing in the U.S. and European Union. The rise of ESG has brought significant challenges. The lack of a universal framework for ESG evaluation makes it difficult for investors and other stakeholders to… Read More »

Balancing Act: Regulators’ Dilemma in Climate-Related Disclosures 

By | November 2, 2023

Climate change is undeniably a significant and looming threat, impacting both the global environment and  the stability of our economies and financial sector. There is an immediate and pressing need to comprehensively assess and effectively manage this multifaceted risk. Recently, we’ve seen a proactive response from regulatory bodies and standard-setting organizations worldwide, as they’ve taken… Read More »

Climate change, tax avoidance, and shareholder value: Evidence from the Paris Agreement 

By | October 31, 2023

Climate change is undeniably one of the most pressing challenges of our era. The scientific consensus regarding the urgency of addressing climate change has spurred international efforts to combat its effects. Central to this endeavor is the Paris Agreement, a historic international climate accord signed by 196 countries in 2015. This agreement aims to mitigate… Read More »

Uncle Sam’s Stimulus and Crypto Boom 

By | October 26, 2023

On July 9, 2020, a criminal complaint was filed against Joshua Thomas Argires, a Houston business owner, for submitting materially false loan applications to obtain and misuse funds from the Paycheck Protection Program (PPP).  Around May 2020, Mr. Argires opened an account in the name of Texas Barbecue at Coinbase and began trading crypto, ultimately… Read More »

Penalty Zones and International Sustainability Standards 

By | October 25, 2023

Increasingly, sustainability standards are recognized as important tools for helping companies navigate the complex sustainability landscape. These standards help companies tackle their social and environmental challenges and serve as credible signals to stakeholders that they are doing the right thing, thus creating potential opportunities for the market to reward these companies.   But what really… Read More »

The Crypto Cycle and US Monetary Policy 

By | October 23, 2023

Crypto assets exhibit considerable design and value proposition differences, ranging from inflation protection to facilitating more streamlined payments, ensuring censorship-resistant computing, and safeguarding property rights. Nevertheless, their prices often exhibit similar cyclical patterns. Surge periods with substantial returns have lured both retail and institutional investors. Meanwhile, the subsequent market downturns have garnered growing scrutiny from… Read More »

Using GPT-4 for Financial Advice 

By | October 20, 2023

Text-based artificial intelligence (AI) tools such as GPT-4 enable tech-savvy laypeople to conduct tasks in complex domains with little prior experience. The financial sector, dealing with vast amounts of data daily, is among the industries most eagerly working on AI solutions. For example, Morgan Stanley’s asset management division was one of GPT-4’s first customers and… Read More »

Green Risk in Europe 

By | October 19, 2023

Aligning financial market activity with policy and regulation interventions is necessary to foster an orderly transition to a carbon-free economy. For instance, within the European Green Deal strategy, the European Union Taxonomy provides firms, investors, and policymakers with detailed criteria to assess the environmental sustainability of economic activities concerning climate change mitigation and adaptation, among… Read More »

Green Bonds: A Legal and Economic Analysis 

By | October 12, 2023

Green bonds are fixed-income securities issued by private corporations or public bodies (such as central banks or governments) to finance environmentally beneficial (“green”) projects. They are a relatively novel creation of international finance (what is considered the first ever green bond, the European Investment Bank’s “Climate Awareness Bond”, was created in 2007), but one that… Read More »