Tag Archives: capital

The Role of Institutional Investors in Financial Distress Resolution

By | April 11, 2022
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A large literature has highlighted differences in bankruptcy laws across countries and the way these laws impact financial reorganization. While the resolution of financial distress varies from country to country, a distressed firm typically faces two alternatives when it comes to rearranging its capital structure: (1) a formal court-supervised bankruptcy procedure under bankruptcy law or (2) an informal out-of-court… Read More »

Liquidity, Trade, and Investor-Identity Disclosure

By | April 7, 2022
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In the modern information economy, an increasing amount of information about capital market participants is available. Transparency regulation has facilitated this type of information. For example, short positions in Europe require unmasking the identity of the trader. Although prior research has studied the impact of revealing trader identities on capital markets, little is known about… Read More »

Cryptocurrency and the Limits of Criminal Prosecution

By | April 6, 2022
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I recently had the opportunity to testify before the U.S. Senate Committee on Banking, Housing and Urban Affairs in a hearing on “Understanding the Role of Digital Assets in Illicit Finance.” My testimony focused on the ways cryptocurrency is increasingly being used to facilitate existing and new crimes, as well as the challenges that cryptocurrency… Read More »

ESG Commitment and the Value of “Walking the Talk”: Evidence from Closed-End Funds

By | April 5, 2022
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Does a firm’s initiative for Environmental, Social, and Governance (ESG) increase firm value? In our recent working paper, we investigate how a firm’s commitment to ESG can increase (or decrease) the firm value using closed-end funds (CEFs) as an empirical laboratory. In particular, we focus on the role of credible commitments to ESG in determining the… Read More »

The role of capital markets in saving the planet and changing capitalism – just kidding 

By | March 31, 2022
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Given the emphasis on Environmental, Social, and Governance (ESG) in the media and among the finance community, one could easily believe that capital markets are a major contributor to the goal of limiting global warming. We argue this perception is largely false; a narrative strongly pushed by the finance industry to highlight green initiatives and,… Read More »

When Insiders Trade, Buyers Get Worse, and Sellers Improve

By | March 30, 2022
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A substantial body of academic literature examines the personal trades of corporate officers and directors in their company shares, commonly referred to as “insider trades.” Much of the early work, either in the aggregate or in the cross-section, ignores the likelihood that an insider’s motivations or trading patterns are likely to change over time. In… Read More »

Australia Leads the Way in Data-Sharing

By | March 29, 2022
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The consumer data right (CDR) is being rolled out progressively across most of Australia’s economy. CDR puts people in charge of the data that businesses hold on them and does so in a way that is simple for consumers. Within five years, it should transform commerce, promote competition in many sectors, and simplify daily life.  … Read More »

Is the Debate on Shareholders and Stakeholders Obsolete? 

By | March 28, 2022
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Shareholders are widely perceived as the best advocates of stakeholders’ interests. We can dub this phenomenon shareholders stakeholderism: the pursuit of stakeholders’ good by shareholders. This leads us to wonder whether the pursuit of stakeholders’ good by shareholders is just a perception; or has something changed? Industry and academics seem to suggest that the perception is… Read More »

Assessing Cyber Insurers’ War Exclusions & Coverage Carvebacks

By | March 23, 2022
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Given the recent surge of ransomware attacks and escalating conflict with Russia, assessing a cyber insurance policy’s war/terrorism exclusion has never been more important. The cyber war exclusion, used by insurers to insulate against catastrophic risk, has been a considerable topic of discussion due to its overly broad language and potential for misapplication. Nearly all… Read More »

Are Judges Randomly Assigned to Chapter 11 Bankruptcies? Not According to Hedge Funds

By | March 21, 2022
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”The bankruptcy system is supposed to work for everyone, but in many cases it works only for the powerful” – House Judiciary Committee Chairman Jerrold Nadler, July 28th, 2021. Since at least Frank (1931), researchers have recognized that judicial outcomes are subject to the biases of the ruling judge. To alleviate concerns of fairness, courts in both… Read More »