Tag Archives: Economics

Recommendations for the Application of Tax Law to Digital Assets 

By | April 24, 2024
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Legislative corridors in the United States are fueled with ambition and hopes to deliver a well-rounded framework for digital asset taxation. However, the path to unified and comprehensive legislation is laden with details and controversies. In July 2023, the Joint Committee on Taxation requested comments from interested parties on how current laws and regulations might… Read More: Recommendations for the Application of Tax Law to Digital Assets  »

Unravelling the Frozen Assets Conundrum: Strategic Approaches to the Confiscation of Russian Assets in the EU

By | April 22, 2024
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The United States, the European Union (EU), and other jurisdictions have imposed restrictive measures (sanctions) against Russia, including asset freezes, in response to the war of aggression against Ukraine. The latest available data shows that frozen assets belonging to sanctioned Russian individuals and entities amount to 21.5 billion Euros. Furthermore, the frozen assets of the… Read More: Unravelling the Frozen Assets Conundrum: Strategic Approaches to the Confiscation… »

Propagation of Climate Disasters Through Ownership Networks

By | March 7, 2024
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Climate risk is one of the greatest challenges facing the world today and investors are taking notice.  But a full understanding of how climate risks get implemented into firm policy remains elusive. In our recent paper, we study the propagation of climate disasters through common ownership networks as a mechanism through which investors may impact… Read More: Propagation of Climate Disasters Through Ownership Networks »

Common Investor Relations Representation 

By | March 5, 2024
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Publicly listed corporations in the US typically have investor relations (IR) programs that involve providing information to and interfacing with external firm stakeholders. IR encompasses various activities, including preparing and issuing corporate disclosures, managing relationships with current and prospective investors, organizing non-deal roadshows to improve visibility with the street, interfacing with sell-side analysts to evaluate… Read More: Common Investor Relations Representation  »

Understanding Corporate Tax Audits: Insights from Novel Firm-Level Data 

By | March 4, 2024
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In the complex realm of corporate taxation, tax audits play a crucial role in influencing how companies deal with their tax planning strategies. The influence of these audits is substantial, yet a comprehensive understanding of their economic implications remains elusive, primarily due to the lack of detailed public data. Although tax audits are inherently negative… Read More: Understanding Corporate Tax Audits: Insights from Novel Firm-Level Data  »

Can Elon Musk’s SpaceX Raise More Equity Capital Without Going Public?

By | January 25, 2024
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Elon Musk’s SpaceX, a pioneering company in reusable rockets and spacecraft design, continues to rank as one of the most valuable private companies in the world. According to Bloomberg, its valuation nears 180 billion dollars, over 100 times that of a “unicorn”— a private company that is valued at over one billion dollars. To date,… Read More: Can Elon Musk’s SpaceX Raise More Equity Capital Without Going… »

Regulatory Transparency and Regulators’ Effort: Evidence from Public Release of the SEC’s Review Work 

By | January 18, 2024
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Regulators face near-zero competition and exit threats. Thus, agency problems are more likely to occur when information asymmetry exists between regulators and constituents (Stiglitz 1999; Coffee 2007). If information asymmetry exacerbates moral hazard in the regulatory context, then the question is whether regulatory transparency can reduce moral hazard and improve regulator accountability. After all, regulators… Read More: Regulatory Transparency and Regulators’ Effort: Evidence from Public Release of… »

How can tax rules shape the global market for corporate control and overall economic growth? The case of anti-loss trafficking rules

By | January 17, 2024
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2021 saw a remarkable surge in the global market for corporate control, with a record number of 65,000 mergers and acquisitions (M&A). Among other factors, tax rules play an important role in shaping the probability and structure of M&A transactions. In 2008, the temporary suspension of limitations on tax loss transfers led to a substantial… Read More: How can tax rules shape the global market for corporate… »

Regulating Choice Architecture with Behavioral Audits

By | January 16, 2024
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Regulation of behavioral science is coming. The Biden Administration has committed to tackling “junk fees” which emerge from deceptive, online behavioral design practices, as has the Federal Trade Commission. In the UK, the Competition and Markets Authority (CMA) is increasingly concerned with harms arising from ‘behavioral design’ and ‘choice architecture’. So too is the European… Read More: Regulating Choice Architecture with Behavioral Audits »

Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds 

By | January 12, 2024
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In response to the escalating demand for sustainable investment options, the mutual fund industry is actively integrating sustainability into investment strategies and has introduced numerous financial products focused on sustainable investing. Consequently, mutual funds in capital markets can generally be categorized into two groups: self-identified ESG funds and non-ESG funds. Notably, over 70% of the… Read More: Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual… »