The Real Problem from Trading by Politicians: Information Sharing that Erodes Market Efficiency 

By | December 22, 2023
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Trading by politicians is increasingly scrutinized, with recent legislation prohibiting trading by politicians being introduced in Congress. There have been numerous scandals involving insider trading, such as trading prior to COVID lockdowns or trading ahead of government contract awards or FDA reports. Some politicians, however, claim that restrictions on their trading violates their economic freedom… Read More »

Migration of Global Supply Chains:  A Real Effect of Mandatory ESG Disclosure 

By | December 21, 2023
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The rising tide of environmental, social, and governance (ESG) awareness among many stakeholders is reshaping the corporate information environment. These stakeholders, driven by a desire for transparency, are demanding more detailed ESG-related information to evaluate corporate practices better. However, one significant limitation is the inconsistency in ESG disclosures among different jurisdictions regarding measurement, scope, and… Read More »

Non-Financial Liabilities and Effective Corporate Restructuring 

By | December 14, 2023
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The system for managing corporate insolvency varies in fundamental ways between countries, with important effects on economic outcomes. Chapter 11 of the U.S. Bankruptcy Code forms the legal basis of the successful American regime, which can handle distress in a formal process without liquidating assets, closing businesses, and with limited job losses. Many countries aim… Read More »

Business Succession Planning Using a Purpose Trust

By | December 13, 2023
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With nearly 2.7 million U.S. businesses owned by baby boomers,1 succession planning for these businesses has become critically important. For some owners, the next generation of the family has both the interest and the ability to continue to manage the business. For other owners, the sale of the business to a third party will be… Read More »

Are public health policies associated with corporate innovation? Evidence from U.S. nonsmoking laws 

By | December 12, 2023
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Fostering a culture of innovation is paramount for the sustained growth of the global economy. Achieving innovative outcomes, however, is not easy. Prior research has extensively examined the effect of various regulations, firm characteristics, and incentive structures that are designed to increase innovation, many of which have limited effect. We add to this research by… Read More »

After the “Partner Run”: the Dewey & LeBoeuf Diaspora 

By | December 11, 2023
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Law firms are distinctive creatures. The worker-owned governance structure, mandated by law’s professional responsibility rules, accidentally enables a distinctive type of business collapse known as a “partner run.” Partner runs are total liquidations, never reorganizations, and deeply feared by any law firm of scale. In my recent paper, I test whether a partner run can… Read More »

Antitakeover Regulation in China: Shortcomings and the Urgency for Reform 

By | November 30, 2023
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China’s meteoric rise as a global economic powerhouse has thrown its financial market regulations into sharp focus. In particular, the country’s antitakeover laws have been the subject of intense scrutiny. My recent paper  examines these laws and the issues surrounding them, highlighting their shortcomings and underscoring the pressing need for reforms. Furthermore, it provides comprehensive… Read More »

Does Monetary Policy Shape the Path to Carbon Neutrality? 

By | November 29, 2023
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Recent years have seen a growing divergence in how central banks approach climate change. For instance, while Jerome Powell, Chairman of the Federal Reserve System, underscores that the Fed doesn’t view itself as a “climate policymaker,” the Bank of England and the European Central Bank have been more proactive, advocating for an economy-wide transition to… Read More »

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

By | November 27, 2023
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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 »