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Productivity And The California Global Warming Solutions Act: An Examination Of Cost Of Compliance Utilizing Plant Level Data In The Portland Cement And Manufacturing Industry, Richard Ardito 2018 Liberty University

Productivity And The California Global Warming Solutions Act: An Examination Of Cost Of Compliance Utilizing Plant Level Data In The Portland Cement And Manufacturing Industry, Richard Ardito

Doctoral Dissertations and Projects

This dissertation examined the effect of California environmental regulation, AB32 on the Portland Cement Mining and Manufacturing industry which was directly targeted by the legislation. The researcher examined the effect of productivity on the Portland Cement industry operating within California by comparing changes specific labor and fuel use productivity measures to changes in the same measures for organizations operating outside of California. These differences were examined using an independent sample t-test to determine if any changes were statistically significant. The results showed statistically significant increases in productivity for direct labor, total employee labor, and combustible fuel use when analyzed to ...


The Impact Of Sustainability Reporting On Firm Profitability, Lancee L. Whetman 2018 Westminster College, Salt Lake City

The Impact Of Sustainability Reporting On Firm Profitability, Lancee L. Whetman

Undergraduate Economic Review

Using a hand-collected representative sample of 95 publicly traded American firms from various sectors in 2015-2016, I examine how corporate sustainability reporting affects the financial performance of firms. I find a positive and significant effect of sustainability reporting on a firm’s return on equity, return on assets, and profit margin in the subsequent year. However, this relationship is found only for firms with low institutional ownership. These results suggest that sustainability reporting would be a worthwhile use of corporate resources for this subset of firms. Further, corporate sustainability reporting is shown to be an effective substitute for monitoring by ...


Cracking Shells: The Panama Papers & Looking To The European Union's Anti-Money Laundering Directive As A Framework For Implementing A Multilateral Agreement To Combat The Harmful Effects Of Shell Companies, Nicholas Vail 2018 Texas A&M University School of Law

Cracking Shells: The Panama Papers & Looking To The European Union's Anti-Money Laundering Directive As A Framework For Implementing A Multilateral Agreement To Combat The Harmful Effects Of Shell Companies, Nicholas Vail

Texas A&M Law Review

In early 2016, the International Consortium of Investigative Journalists released a report detailing thousands of leaked documents demonstrating how a Panamanian law firm had, for years, helped wealthy clients conceal their financial activities through the use of offshore shell companies. The Panama Papers, as the leaked documents came to be known, directed renewed attention at the use of shell companies. Shell companies are used by the world’s wealthy and powerful to lower their taxes, but are also used by tax evaders, criminal organizations, and terrorists. While much of the renewed attention has been directed at offshore tax havens such ...


Play To Win Or Don't Play At All: The Financial Returns To Making The Cut, Ben William Lewis, W. Chad Carlos 2018 Brigham Young University

Play To Win Or Don't Play At All: The Financial Returns To Making The Cut, Ben William Lewis, W. Chad Carlos

All Faculty Publications

Despite the proliferation of lists and rankings that recognize firms for superior performance, empirical studies have been limited in their ability to causally evaluate how inclusion for the marginal firm influences shareholder value. Using a regression discontinuity design, we address this limitation by examining how investors responded to firms that were just barely included or excluded from the 100 Best Corporate Citizens list. Our findings indicate that marginal firms that were included experience negative abnormal returns compared to marginal firms that were excluded. We highlight new areas of inquiry for scholarship on rankings and provide a more nuanced perspective on ...


Ceo Tenure And Corporate Misconduct: Evidence From Us Banks, John Thornton, Yener Altunbaş, Yurtsev Uymaz 2017 University of East Anglia

Ceo Tenure And Corporate Misconduct: Evidence From Us Banks, John Thornton, Yener Altunbaş, Yurtsev Uymaz

John Thornton

We test for a link between CEO tenure and misconduct by US banks. We find that banks are more likely to commit misconduct when CEOs have a relatively long tenure and banks have relatively poor balance sheets. Large and independent corporate boards can mitigate but not prevent misconduct.


The Seventeenth Annual Albert A. Destefano Lecture On Corporate, Securities & Financial Law At The Fordham Corporate Law Center, Caroline M. Gentile, The Honorable Karen L. Valihura 2017 Fordham University School of Law

The Seventeenth Annual Albert A. Destefano Lecture On Corporate, Securities & Financial Law At The Fordham Corporate Law Center, Caroline M. Gentile, The Honorable Karen L. Valihura

Fordham Journal of Corporate & Financial Law

No abstract provided.


Regulating A Revolution: From Regulatory Sandboxes To Smart Regulation, Dirk A. Zetzsche, Ross P. Buckley, Janos N. Barberis, Douglas W. Arner 2017 Faculty of Law, Economics and Finance, University of Luxembourg

Regulating A Revolution: From Regulatory Sandboxes To Smart Regulation, Dirk A. Zetzsche, Ross P. Buckley, Janos N. Barberis, Douglas W. Arner

Fordham Journal of Corporate & Financial Law

Prior to the global financial crisis, financial innovation was viewed very positively, resulting in a laissez-faire, deregulatory approach to financial regulation. Since the crisis the regulatory pendulum has swung to the other extreme. Post-crisis regulation, plus rapid technological change, have spurred the development of financial technology (FinTech). FinTech firms and data-driven financial service providers profoundly challenge the current regulatory paradigm. Financial regulators increasingly seek to balance the traditional regulatory objectives of financial stability and consumer protection with promoting growth and innovation. The resulting regulatory innovations include RegTech, regulatory sandboxes, and special charters. This Article analyzes possible new regulatory approaches, ranging ...


Venture Capital Contract Design: An Empirical Analysis Of The Connection Between Bargaining Power And Venture Financing Contract Terms, Spencer Williams 2017 Stanford Law School Program on Corporate Governance and Practice

Venture Capital Contract Design: An Empirical Analysis Of The Connection Between Bargaining Power And Venture Financing Contract Terms, Spencer Williams

Fordham Journal of Corporate & Financial Law

This Article presents an empirical analysis of the connection between bargaining power and contract design using an original dataset of over 5,500 equity and debt venture financings from 2004–2015. Using the total supply of venture capital in the U.S. as a measure of relative bargaining power between entrepreneurs and investors, this Article finds that venture capital supply has a statistically significant relationship with price and non-price terms in both equity and debt financings. These results contradict one of three theoretical accounts of bargaining power and support the other two.


Proxy Access And Optimal Standardization In Corporate Governance: An Empirical Analysis, Reilly S. Steel 2017 U.S. Senate Committee on Banking, Housing, and Urban Affairs

Proxy Access And Optimal Standardization In Corporate Governance: An Empirical Analysis, Reilly S. Steel

Fordham Journal of Corporate & Financial Law

According to the conventional wisdom, “one size does not fit all” in corporate governance. Firms are heterogeneous with respect to their governance needs, implying that the optimal corporate governance structure must also vary from firm to firm. This one-size-does-not-fit-all axiom has featured prominently in arguments against numerous corporate law regulatory initiatives, including the SEC’s failed Rule 14a-11—an attempt to impose mandatory, uniform “proxy access” on all public companies—which the D.C. Circuit struck down for inadequate costbenefit analysis.

This Article presents an alternative theory as to the role of standardization in corporate governance—in which investors ...


A Novel Approach To Defining "Whistleblower" In Dodd-Frank, Ian A. Engoron 2017 J.D. Candidate, Fordham University School of Law

A Novel Approach To Defining "Whistleblower" In Dodd-Frank, Ian A. Engoron

Fordham Journal of Corporate & Financial Law

Following the Financial Crisis of 2008, trust in the financial industry was at an all-time low as the American taxpayer was forced to bailout the very same institutions responsible for their suffering. In response, Congress passed Dodd-Frank in 2010 to ensure another crisis like 2008 never happen again. Section 78u-6 of the Act provides incentives and protections for whistleblowers who report violations of securities laws. In recent years there has been a divide among circuit courts over the question of whether employees who report violations internally to their bosses—and not directly to the SEC—are protected by the Act ...


Are Overconfident Ceos Better Leaders? Evidence From Stakeholder Commitments, Kenny PHUA, T. Mandy THAM, Chi Shen WEI 2017 Singapore Management University

Are Overconfident Ceos Better Leaders? Evidence From Stakeholder Commitments, Kenny Phua, T. Mandy Tham, Chi Shen Wei

Research Collection Lee Kong Chian School Of Business

We find evidence that the leadership of overconfident chief executive officers (CEOs) induces stakeholders to take actions that contribute to the leader's vision. By being intentionally overexposed to the idiosyncratic risk of their firms, overconfident CEOs exhibit a strong belief in their firms’ prospects. This belief attracts suppliers beyond the firm's observable expansionary corporate activities. Overconfident CEOs induce more supplier commitments including greater relationship-specific investment and longer relationship duration. Overconfident CEOs also induce stronger labor commitments as employees exhibit lower turnover rates and greater ownership of company stock in benefit plans.


Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy 2017 Southern Methodist University

Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy

Amar Gande

We examine whether risk-taking among the largest financial firms in the U.S. is related to CEO equity incentives before the 2008 financial crisis.  Using data on U.S. Federal Reserve emergency loans provided to these firms, we find that the amount of emergency loans and total days the loans are outstanding are increasing in pre-crisis CEO risk-taking incentives – “vega”.  Our results are robust to accounting for endogeneity in CEO equity incentives and selection of financial firms into emergency loan programs.  We also rule out the possibility that our results are driven by a bank’s funding base, bank complexity ...


R&D Sensitivity To Asset Sale Proceeds: New Evidence On Financing Constraints And Intangible Investment, Ginka Borisova, James R. Brown 2017 Iowa State University

R&D Sensitivity To Asset Sale Proceeds: New Evidence On Financing Constraints And Intangible Investment, Ginka Borisova, James R. Brown

James R. Brown

We examine the intersection between corporate divestitures of tangible assets and investment in intangible capital (R&D) to provide new tests for the impact financing constraints have on real activity. A positive R&D sensitivity to asset sale proceeds indicates binding financing constraints since cash inflows from tangible asset sales are negatively correlated with productivity shocks and not otherwise connected to intangible investment via non-financial channels. Using a variety of estimation approaches, we document a strong, positive link between cash inflows from fixed asset sales and corporate R&D investment, but only among firms most likely facing binding financing constraints ...


Access To Private Equity And Real Firm Activity: Evidence From Pipes, James R. Brown, Ioannis V. Floros 2017 Iowa State University

Access To Private Equity And Real Firm Activity: Evidence From Pipes, James R. Brown, Ioannis V. Floros

James R. Brown

No abstract provided.


Law, Stock Markets, And Innovation, James R. Brown, Gustav Martinsson, Bruce C. Petersen 2017 Iowa State University

Law, Stock Markets, And Innovation, James R. Brown, Gustav Martinsson, Bruce C. Petersen

James R. Brown

We study a broad sample of firms across 32 countries and find that strong shareholder protections and better access to stock market financing lead to substantially higher long-run rates of R&D investment, particularly in small firms, but are unimportant for fixed capital investment. Credit market development has a modest impact on fixed investment but no impact on R&D. These findings connect law and stock markets with innovative activities key to economic growth, and show that legal rules and financial developments affecting the availability of external equity financing are particularly important for risky, intangible investments not easily financed with ...


Do Financing Constraints Matter For R&D?, James R. Brown, Gustav Martinsson, Bruce C. Petersen 2017 Iowa State University

Do Financing Constraints Matter For R&D?, James R. Brown, Gustav Martinsson, Bruce C. Petersen

James R. Brown

Information problems and lack of collateral value should make R&D more susceptible to financing frictions than other investments, yet existing evidence on whether financing constraints limit R&D is decidedly mixed, particularly in the studies of non-U.S. firms. We study a large sample of European firms and also find little evidence of binding finance constraints when we estimate standard investment-cash flow regressions. However, we find strong evidence that the availability of finance matters for R&D once we directly control for: (i) firm efforts to smooth R&D with cash reserves and (ii) firm use of external equity ...


Profitability Ratios In The Early Stages Of A Startup, Erkki K. Laitinen 2017 University of Vaasa

Profitability Ratios In The Early Stages Of A Startup, Erkki K. Laitinen

The Journal of Entrepreneurial Finance

This study develops a mathematical framework to analyze the time series of profitability ratios in the early stages of a startup. It is assumed that the expenditure of the startup grows at a steady rate and generates a proportionally identical flow of revenue in each period. The profitability in terms of the internal rate of return (IRR) and the lag structure of revenue flows are assumed constant over time in describing the adjustment process towards the steady state. The startup is assumed to expense in each period a constant part of periodic expenditure and beginning-of-the-period assets. The adjustment processes of ...


Trade Secrets Law And Corporate Disclosure: Causal Evidence On The Proprietary Cost Hypothesis, Yinghua Li, Yupeng LIN, Liandong ZHANG 2017 Singapore Management University

Trade Secrets Law And Corporate Disclosure: Causal Evidence On The Proprietary Cost Hypothesis, Yinghua Li, Yupeng Lin, Liandong Zhang

Research Collection School Of Accountancy

This study exploits the staggered adoption of the inevitable disclosure doctrine (IDD) by U.S. state courts as an exogenous shock that generates variations in the proprietary costs of disclosure. We find that firms respond to IDD adoption by reducing the level of disclosure regarding their customers’ identities, supporting the proprietary cost hypothesis. Our results are stronger for firms in industries with a higher degree of entry threats, for firms in more volatile industries, and for firms with a lower degree of external financing dependence. Overall, this study represents one of the first efforts in identifying the causal effect of ...


Zombie Board: Board Tenure And Firm Performance, Sterling HUANG, Gilles HILARY 2017 Singapore Management University

Zombie Board: Board Tenure And Firm Performance, Sterling Huang, Gilles Hilary

Research Collection School Of Accountancy

We show that board tenure exhibits an inverted U-shaped relation with firm value and accounting performance. The quality of corporate decisions, such as M&A, financial reporting quality, and CEO compensation, also has a quadratic relation with board tenure. Our results are consistent with the interpretation that directors’ on-the-job learning improves firm value up to a threshold, at which point entrenchment dominates and firm performance suffers. To address endogeneity concerns, we use a sample of firms in which an outside director suffered a sudden death, and find that sudden deaths that move board tenure away from (toward) the empirically observed ...


Lobbying In Finance Industry: Evidence From Us Banking System, Omer Unsal, M.Kabir Hassan, William Hippler 2017 Merrimack College

Lobbying In Finance Industry: Evidence From Us Banking System, Omer Unsal, M.Kabir Hassan, William Hippler

Finance Faculty Publications

We examine the relationship between corporate lobbying, shareholder-based litigation outcomes, and firm value for financial firms. First, we show that political lobbying lowers the litigation likelihood for financial institutions. Secondly, lobbying firms experience a higher likelihood of having litigation dismissed, and the average settlement amount is significantly lower for lobbying institutions. In addition, shortly after a litigation announcement, lobbying firms experience significantly higher cumulative abnormal returns (CARs), compared to non-lobbying firms. Finally, we show that lobbying firms have higher long-run buy-and-hold abnormal stock returns (BHARs) following lobbying activities. Our results link financial institution lobbying activity with improved legal outcomes and ...


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