Tag Archives: Corporate Governance

In the Battle for Financial Privacy, Whose Voice will Count? 

By | August 9, 2023

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 »

Duality of Variance Among ESG Assessments 

By | August 8, 2023

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 »

Executive Compensation with Socially Responsible Shareholders 

By | July 5, 2023

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 »

Does the Financial Experience of SEC Regional Directors Impact SEC Investigations? 

By | July 4, 2023

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 »

SPACs: The Global Investment Mania and Regulatory Responses

By | June 30, 2023

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 »

Board’s Digital Oversight and Expertise: Some Initial Findings Using NLP Methods 

By | June 29, 2023

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 »

Woke Capital Revisited 

By | June 28, 2023

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 »

Do Firms Smooth Earnings Less When They Can Hedge Noise Better? 

By | June 26, 2023

Using accounting discretion to smooth earnings is believed to be pervasive. For example, in an influential survey of CFOs, 96.9% of respondents indicate a preference for reporting smooth earnings. The underlying motives and desirability of this phenomenon, however, remain up for debate.   Under one interpretation, managers smooth earnings to mask poor decision making or rent… Read More »

Corner-Cutters: Personally Tax Aggressive Executives and Corporate Regulatory Violations 

By | May 31, 2023

In a new study, we investigate the relationship between executives who exploit their position in the firm to reduce their tax liabilities (i.e., “personally tax aggressive” executives) and corporate violations across various activities, including workplace safety and environmental regulations. Specifically, we examine executives who consistently gift corporate stock at or near the maximum of the… Read More »

Comparing Capital Allocation Efficiency in Public and Private Equity Markets 

By | May 22, 2023

At its core, the economy’s essential role is to allocate resources toward the most productive investment prospects. Traditionally, stock markets have been particularly efficient at allocating capital to firms with the most promising investment projects. In recent times, however, private equity (PE) markets have experienced significant expansion and have provided more capital through private than… Read More »