Tag Archives: investors

The Real Problem from Trading by Politicians: Information Sharing that Erodes Market Efficiency 

By | December 22, 2023

Trading by politicians is increasingly scrutinized, with recent legislation prohibiting trading by politicians being introduced in Congress. There have been numerous scandals involving insider trading, such as trading prior to COVID lockdowns or trading ahead of government contract awards or FDA reports. Some politicians, however, claim that restrictions on their trading violates their economic freedom… Read More »

Migration of Global Supply Chains:  A Real Effect of Mandatory ESG Disclosure 

By | December 21, 2023

The rising tide of environmental, social, and governance (ESG) awareness among many stakeholders is reshaping the corporate information environment. These stakeholders, driven by a desire for transparency, are demanding more detailed ESG-related information to evaluate corporate practices better. However, one significant limitation is the inconsistency in ESG disclosures among different jurisdictions regarding measurement, scope, and… Read More »

Non-Financial Liabilities and Effective Corporate Restructuring 

By | December 14, 2023

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 »

Antitakeover Regulation in China: Shortcomings and the Urgency for Reform 

By | November 30, 2023

China’s meteoric rise as a global economic powerhouse has thrown its financial market regulations into sharp focus. In particular, the country’s antitakeover laws have been the subject of intense scrutiny. My recent paper  examines these laws and the issues surrounding them, highlighting their shortcomings and underscoring the pressing need for reforms. Furthermore, it provides comprehensive… Read More »

Does Monetary Policy Shape the Path to Carbon Neutrality? 

By | November 29, 2023

Recent years have seen a growing divergence in how central banks approach climate change. For instance, while Jerome Powell, Chairman of the Federal Reserve System, underscores that the Fed doesn’t view itself as a “climate policymaker,” the Bank of England and the European Central Bank have been more proactive, advocating for an economy-wide transition to… Read More »

Call Me Maybe? Bondholder Relationships and Corporate Call Policy  

By | November 28, 2023

Corporate bonds are a significant source of funding for US firms. In fact, between 2000 and 2022, US firms issued almost six times more in non-convertible bonds than they did in equity. A common feature in these bonds allows issuers to repurchase them before their due date at a set price – this is known… Read More »

Cross-Border Investments in Private Firms: The Benefits of Comparability for Foreign Investors 

By | November 27, 2023

The harmonization of reporting standards has come a long way since the mandatory adoption of International Financial Reporting Standards (IFRS) for public firms in the European Union (EU) and other countries in 2005. In our recent paper, we focus on private firms and examine whether an increase in accounting comparability of local financial reporting practices… Read More »

Balancing Act: Regulators’ Dilemma in Climate-Related Disclosures 

By | November 2, 2023

Climate change is undeniably a significant and looming threat, impacting both the global environment and  the stability of our economies and financial sector. There is an immediate and pressing need to comprehensively assess and effectively manage this multifaceted risk. Recently, we’ve seen a proactive response from regulatory bodies and standard-setting organizations worldwide, as they’ve taken… Read More »

Climate change, tax avoidance, and shareholder value: Evidence from the Paris Agreement 

By | October 31, 2023

Climate change is undeniably one of the most pressing challenges of our era. The scientific consensus regarding the urgency of addressing climate change has spurred international efforts to combat its effects. Central to this endeavor is the Paris Agreement, a historic international climate accord signed by 196 countries in 2015. This agreement aims to mitigate… Read More »

Uncle Sam’s Stimulus and Crypto Boom 

By | October 26, 2023

On July 9, 2020, a criminal complaint was filed against Joshua Thomas Argires, a Houston business owner, for submitting materially false loan applications to obtain and misuse funds from the Paycheck Protection Program (PPP).  Around May 2020, Mr. Argires opened an account in the name of Texas Barbecue at Coinbase and began trading crypto, ultimately… Read More »