At their current levels, sustainable investments are considerably below the levels needed to achieve decarbonization and the targets of the Paris Agreement. The World Economic Forum suggests that, to meet these goals, investments in nature-based solutions must quadruple by 2050, resulting in an annual investment exceeding $536 billion. Several strategies have been proposed, emphasizing the… Read More »
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 »
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 »
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 »
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 »
The importance of public policy has increased for investors since 2015, when governments committed to shifting trillions of dollars to be consistent with the goals of the Paris Agreement and to increase investments in the Sustainable Development Goals (SDGs). Further, investors have accepted the influence of ESG factors on delivering financial returns, recognizing the need… Read More »
Demand for infrastructure investment continues to ramp up amid growing commitments to a low-carbon future and rapid economic growth in developing countries. The nature of this “scaling up” challenge requires capital that governments cannot provide alone, necessitating the utilization of private capital. Institutional investors collectively possess the financial resources ($16 trillion in “direct” investment capacity)… Read More »
In recent years, the financial industry has been increasingly pressured to actively contribute to addressing critical societal challenges, such as climate change. Now, many investors expect their money to be managed in a way that promotes positive environmental and social change. Given these expectations, there is a growing interest in understanding the real impact of… Read More »
In the U.S., the rise in healthcare costs has been the subject of intense public and regulatory scrutiny. Average health insurance premiums have risen steadily over the past few years, outpacing inflation. However, the negative consequences of this economic rise are not fully understood. In particular, a significant portion of the rise in healthcare costs… Read More »
Since the inception of Bitcoin in 2008, crypto assets, have long been perceived as one of the riskiest assets.1 Unlike traditional assets, many cryptocurrencies are decentralized, limited in supply, and difficult to value, leading to speculation, high divergence of opinion, and extreme price volatility. These features, combined with the rapid growth of crypto markets during… Read More »
