There is a consensus that compliance is a critical issue in corporate governance. Yet there remains a gaping hole in our understanding of what determines the effectiveness of compliance programs. Specifically, we know relatively little about the role of third-party compliance advisors. Nowadays, virtually every large law firm or accounting firm sells various “compliance… Read More »
Australia’s corporate and securities regulator, the Australian Securities and Investments Commission (ASIC), has extensive enforcement powers that it can use to ensure compliance with the law. One of these is the power to issue infringement notices. An infringement notice is an administrative mechanism that ASIC can use as a response to misconduct. It is issued… Read More »
The March 2023 bank run on Credit Suisse (CS) has received much attention. As a result of this bank run, the Swiss banking regulator (FINMA) pushed for the merger of CS with UBS, another large Swiss bank, thus creating one of the biggest banking unions in history. The demise of CS shook faith in a… Read More »
In the lead-up to the debate about the Data Privacy Act of 2023, Financial Services Committee members received letters from consumer groups and finance trade associations, urging them to vote for or against the contentious legislation. The Data Privacy Act of 2023 garnered opposition from consumer advocacy groups and support from finance trade associations. The… Read More »
Variance among assessments of a company’s environmental, social, and governance (ESG) activities is not necessarily the product of error or bias, as is sometimes presumed in the literature. The presumption that there is a singular ESG value at which assessments must converge is counter-productive to the very nature of ESG reforms, which stem from the… Read More »
In the last few years, there has been an increase in the proportion of socially and environmentally responsible shareholders. These shareholders are not solely concerned with the profits generated by a firm. Instead, they also care about its social and environmental impact. Some empirical studies have already established that this has implications for firms’ stock… Read More »
The Securities and Exchange Commission (SEC) is the primary securities regulator for U.S. public companies, so its oversight effectiveness is critical for well-functioning capital markets. However, the regulator’s Division of Enforcement, which handles the investigation and prosecution of possible securities violations, has frequently been criticized and characterized as ineffective by the media, congressional members, and… Read More »
Special Purpose Acquisition Companies (SPACs) have gained significant popularity in the international business community and financial markets. Operating at the intersection of securities regulation and corporate law, SPACs are empty shell entities that raise capital through an initial public offering (IPO) to acquire a target business later. The primary goal of SPACs is to scout… Read More »
In today’s rapidly changing business landscape, new technologies have become essential. The digital revolution, built on data-driven innovations, has permanently shifted how businesses collect, analyze, and utilize information. This transformation comes with significant challenges. As companies navigate the digital landscape, they must address cybersecurity, privacy, and ethical considerations alongside legal requirements. In our recent paper,… Read More »
In Woke Capital Revisited, a symposium piece connected with the 2022 Berle Conference, I argue that an expanded definition of corporate purpose and the social expectation of how public companies should act have created an environment where corporations now play an increasingly prominent role in diversifying leadership. However, the scope of how widely inclusive corporate… Read More »
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