Tag Archives: investors

Are Blockchain and Cryptocurrency M&As Harder to Close?

By | December 29, 2022

Blockchain has been one of the fastest-growing technologies in the last decade. While some of this impressive growth has been organic, mergers and acquisitions (M&A) have aided substantially, particularly in the last several years. The recent cryptocurrency report of PricewaterhouseCoopers emphasizes the extent of this contribution by documenting that “(t)he total value of crypto M&A… Read More »

‘Doing the Job That’s Required?’: Social License to Operate and Directors’ Duties 

By | December 27, 2022

The concept of social license to operate (SLO) is becoming increasingly important as a de-facto corporate regulatory device, with implications for how company directors discharge their duties. While an agreed definition of SLO is hard to identify, at its broadest, SLO might be described as the public’s expectation that businesses will ‘do the right thing.’ This… Read More »

The Value of Undiversified Shareholder Engagement 

By | December 22, 2022

Modern capital markets facilitate the separation of ownership and control. This allows shareholders to diversify their portfolios and firms to undertake value-generating projects regardless of their level of idiosyncratic risk. However, the universal push for diversification often means that shareholders do not bear sufficient risk to incentivize them to monitor the firms in their portfolios.… Read More »

Accounting Conservatism and the Agency Problems of Overvalued Equity 

By | December 21, 2022

In capital markets, the stock market value of a company can sometimes exceed its underlying (fundamental) value. Such overvaluation can materialize over months or even years. Sustained overvaluation is viewed in academic research as a threat to the functioning of capital markets, being at the root of several value-destroying episodes that made the financial system… Read More »

Anti-Corruption Laws and Geographic Reporting Transparency 

By | December 19, 2022

Do companies attempt to disguise their exposure to foreign corruption? Our research investigates whether U.S. companies respond to heightened regulatory risk exposure from foreign anti-corruption laws by increasing or decreasing their geographic reporting transparency regarding their underlying exposure to countries with high risk of corruption.  The U.S. Foreign Corrupt Practices Act (FCPA) exposes U.S. and… Read More »

The Fallacies of Crypto-Whataboutism

By | December 16, 2022

Confront any crypto-enthusiast with statistics regarding the mammoth rise in crimes facilitated by cryptocurrencies, the response will almost always be:  What About Fiat? Crimes Committed With Fiat are Far Worse Than Crime With Crypto. This newfangled retort of Whataboutism is a flawed pivot and anemic argument form. Yes, legions of criminals have committed crimes using… Read More »

Do CEOs Benefit from Employee Pay Raises? Evidence from a Federal Minimum Wage Law 

By | December 15, 2022

The rising disparity between CEO and worker pay over the past few decades has been attracting considerable attention from academics. Over the last two decades, the CEO to median employee pay ratio has been increasing for small (S&P SmallCap 600), medium (S&P MidCap 400), and large (S&P 500) firms. The literature names the managerial rent… Read More »

The Cost of Equity: Evidence From Investment Banking Valuations 

By | December 14, 2022

Cost of equity (COE) is one of the most important financial metrics firms and investors consider when evaluating potential investments. There is an enormous academic literature that either proposes measures of cost of equity or uses it to study asset prices or corporate decisions. Further, practitioners employ discount rates ubiquitously, including for discounted cash flow… Read More »

Variable Leases under ASC 842: First Evidence on Properties and Consequences 

By | December 13, 2022

The new lease accounting standard ASU 2016-02, Lease (Topic 842), codified as ASC 842, requires firms to recognize both finance and operating leases on their balance sheets. However, the Financial Accounting Standards Board (FASB) made an exception for leases with variable payments, which can still be kept off-balance-sheet, affecting a sizable portion of total lease… Read More »

Fighting Over Cryptocurrency in Divorce Amid the Chill of “Crypto Winter” 

By | December 12, 2022

How should courts approach dividing cryptocurrency and NFTs in a divorce? My recent article addresses this very question.  The article carves out specific recommendations regarding NFTs, but for the purpose of this blog post, I will discuss cryptocurrency generally. Bitcoin reached a record high price of over $68,000 in November 2021. In the months that… Read More »