Political decisions shape the operating environment for the economy as well as the individual firm. Political and regulatory reactions to the Global Financial Crisis, government shutdowns, or major tax reforms number prominently among them. As reactions from political actors are rarely clear-cut ex ante, grave crises give rise to political uncertainty. Political uncertainty affects economic… Read More »
The financial system has developed several mechanisms to align interests of managers and investors. Our study focuses on one such mechanism—credit rating agencies. The financial crisis of 2008 highlighted the importance of well-functioning credit rating agencies. The failure of credit rating agencies during the crisis was a focus of the Dodd-Frank Act of 2010 (“Dodd-Frank”),… Read More »
Introduction Special-Purpose Acquisition Companies (SPACs) have been widely discussed over the past year. According to the U.S. Securities and Exchange Commission (SEC), a SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set time frame. A SPAC has 24 months after the initial public offering (IPO)… Read More »
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