Finance and Financial Management Commons^™

Climate Allocation Compass, A Framework For Real-World Decarbonization (Compass-Frwd), Perrine Toledano, Ajay S. Jagdish, Maria Diez Andres, Ana M. Camelo Vega, Rob Furdak, Christina Bastin, Matt Goldklang, Jane Smyth

Columbia Center on Sustainable Investment

Climate finance currently falls far short of what's required to achieve net-zero targets. In a collaboration with the Man Group, we offer a framework setting out how investors can help to close this gap.

Key takeaways:

1. To address the global climate finance gap,CCSI and Man Group have developed the Climate Allocation Compass, a Framework for Real-World Decarbonization (‘Compass-FRWD’).
2. Compass-FRWD is a six-step asset allocation framework designed to guide strategic capital investment across multiple portfolios. It does so by setting financing targets relative to real-world emission gaps, thereby prioritizing sectors and geographies according to decarbonization needs.
3. Compass-FRWD provides a cyclical, investor-level …

Buy Now Pay (Pain?) Later, Ed Dehaan, Jungbae Kim, Ben Lourie, Chenqi Zhu

Research Collection School Of Accountancy

“Buy-now-pay-later” (BNPL) is a relatively unregulated FinTech innovation that provides consumers with easy access to credit for retail purchases. BNPL spending is projected to reach $1 trillion by 2025, but we know little about its effects. Using banking data for10.6 million U.S. consumers, we investigate the effects of BNPL on leading indicators of users’ financial health. We find that new BNPL users experience rapid increases in bank overdraft charges and credit card interest and fees compared with nonusers, consistent with BNPL facilitating overborrowing. An instrumental variable exploiting consumers’ pre-BNPL shopping habits bolsters our inferences. Our results inform regulatory investigations into …

The Law Of General Average, Luca Anderlini, Joshua C. Teitelbaum

Georgetown Law Faculty Publications and Other Works

Part of a ship's cargo is jettisoned in order to save the vessel and the remaining cargo from imminent peril. How should the loss be shared among the cargo owners? The law of general average, an ancient principle of maritime law, prescribes that the owners share the loss proportionally according to the respective values of their cargo. We analyze whether the law of general average is a truthful and efficient mechanism. That is, we investigate whether it induces truthful reporting of cargo values and yields a Pareto efficient allocation in equilibrium. We show that the law of general average is …

Linking Risk Preference, Women’S Empowerment, Farm Investment And Household Well-Being, Samuel Olusesi Olumide

Department of Agricultural Economics: Dissertations, Theses, and Student Research

A nuanced understanding of intra-household dynamics can inform the design of more effective empowerment and agricultural investment policies. By integrating household risk preferences and empowerment dynamics, this work offers valuable insights into the complex mechanisms driving household welfare and provides a framework for future interventions to promote gender equality and economic development in rural settings. This thesis addresses three core hypotheses: first, that the spouses of risk-seeking male heads are more likely to be disempowered compared to those of risk-averse male heads; second, that households with risk-seeking male heads and disempowered spouses are likely to invest more in farming activities; …

Corporate Crisis Management: A Contemporary Best Practices Template, Vivek Narayan

Finance Undergraduate Honors Theses

This paper seeks to re-envision the crisis management framework used by organizations in their day-to-day activities. In the modern world, with exponential technological advancements, the social media age, and the 24/7 news cycle, crises have worsened in severity. Despite this, most literature on the subject is more than a decade old.

Incorporating past literature, this thesis demonstrates that society is in an “era of crises,” then defines and discusses the types and origins of these crises. It compares the topics of issues and crisis management before commentating on corporate and academic literature and ultimately previous 3-stage models for crisis management. …

Exponential Qubit Reduction In Optimization For Financial Transaction Settlement, Elias X. Huber, Benjamin Y. L. Tan, Paul Robert Griffin, Dimitris G. Angelakis

Research Collection School Of Computing and Information Systems

We extend the qubit-efficient encoding presented in (Tan et al. in Quantum 5:454, 2021) and apply it to instances of the financial transaction settlement problem constructed from data provided by a regulated financial exchange. Our methods are directly applicable to any QUBO problem with linear inequality constraints. Our extension of previously proposed methods consists of a simplification in varying the number of qubits used to encode correlations as well as a new class of variational circuits which incorporate symmetries thereby reducing sampling overhead, improving numerical stability and recovering the expression of the cost objective as a Hermitian observable. We also …

The Fourth International Workshop On Smart Data For Blockchain And Distributed Ledger (Sdbd '24), Feida Zhu, Jian Pei, Michael Zeller, Bingxue Zhang

Research Collection School Of Computing and Information Systems

With the advent of Bitcoin, a cryptographically-enabled peer-to-peer digital payment system, blockchain together with a whole package of distributed ledger technologies, which serve as the underlying foundation of all the crypto-currencies, have been gaining attention from both academia and industry in the last fifteen years. The recent years have witnessed tremendous momentum in the development of blockchain and distributed ledger technologies, largely due to the impressive rise in the market capital of these digital tokens. More and more industries, from banking and insurance, to supply chain and e-commerce, are quickly realizing the great potential in blockchain technology in efficiency boost, …

Essays On Esg, Trang Pham

Open Access Theses & Dissertations

The dissertation consists of two essays. The first essay examines the effect of local corruption on a firmâ??s environmental, social, and governance (ESG) performance by taking into account the role of liberalism in each state. I propose that since liberals are generally more environmentally and socially concerned than conservatives, ESG performance of firms located in states with liberal views will be less negatively impacted by the local corruption than conservative-leaning states. The results provide some support for my projection. I find that for a particular level of corruption, firms located in states with liberal leaning views exhibit better ESG performance …

Do Investors Value Firm's Application Of Cryptocurrency And Blockchain Technology?, Shensi Wang

Open Access Theses & Dissertations

This paper examines how investors view a firm's involvement with cryptocurrency or blockchain technology, measured by 10-K disclosures containing the related keywords. I find that investors negatively react to the information related to cryptocurrency or blockchain in the three-day window, but the negative trend is reversed after day four. Surprisingly, the topic analysis indicates that the market reacts positively to all topics related to cryptocurrency and blockchain, except for the "competition environment," suggesting that factors outside adopting cryptocurrency or blockchain affect the negative correlations observed before.

Geographic Links And Predictable Returns, Zuben Jin, Frank Weikai Li

Research Collection Lee Kong Chian School Of Business

Using establishment-level data of U.S. public firms, we construct a novel measure of geographic linkage between firms. We show that the returns of geography-linked firms have strong predictive power for focal firm returns and fundamentals. This effect is distinct from other cross-firm return predictability and is not easily attributable to risk-based explanations. It is more pronounced for focal firms that receive lower investor attention, are more costly to arbitrage, and during high sentiment periods. The cross-firm information spillovers and return predictability are also stronger for geographic peers with economic linkages and with positive information. Our results are broadly consistent with …

Unravelling The Missing Link: Climate Risk, Esg Performance And Debt Capital Cost In China, Yu Yan, Xinman Cheng, Tricia Ong

Research outputs 2022 to 2026

The concept of sustainability has developed significantly from an unrealistic abstract ideology to a framework that can measure companies’ environment, society and corporate governance (ESG) performance. While extensive research has established some relational impacts of ESG performance on debt capital cost (DCC), this paper contends that a comprehensive review of these impacts is incomplete without screening them through the lens of climate risk (CR). Companies are subjected to CR that comprises physical and transition factors resulting from climate change. This paper aims to unravel the missing link between CR and ESG performance, and the consequent impacts on DCC. This paper …

How Can Cbdcs Be Designed To Drive Financial Inclusion?, Heng Wang

Research Collection Yong Pung How School Of Law

As a new form of national currency, central bank digital currencies (CBDCs) hold the potential to be a transformative innovation that can enhance financial inclusion. However, the realization of this potential is very much contingent on their design. The realization of the benefit is also influenced by the barriers to financial inclusion that were identified in our first blog such as financial literacy, digital divide, and complexity.

Comparative Performance Analysis Of Green Bond Issuers To Their Conventional Counterparts, Mai Hosam Farag

Theses and Dissertations

This thesis conducts a comparative performance analysis of green bond issuers versus their conventional counterparts. In the context of the 2015 Paris Climate Agreement, which underscores the financial sector's role in promoting environmental sustainability, green bonds have emerged as crucial instruments for financing eco-friendly projects. This research investigates the financial performance of firms issuing green bonds using metrics such as sales growth, return on assets (ROA), and total debts through Ordinary Least Squares (OLS) regression analysis. The analysis covers 54 publicly traded bonds issued in North America between 2018 and 2022. Despite the growing popularity of green bonds, there are …

A Series Of Accounting Case Studies: Macy's Inc. And Other Notable Financial Events, Emelyn Darnell

Honors Theses

This thesis is a compilation of six case studies focusing on financial accounting and analysis of current events in the accounting world. These were completed under the direction and supervision of Dr. Victoria Dickinson through the Honors Accountancy 420 course. Four case studies included in this compilation are analyses of Macy’s Inc. through different accounting lenses. The case studies analyzing Macy’s Inc. were done in groups in the fall semester of 2022. Our group prepared an Operational Risk Assessment, analyzed Macy’s audit risk, and comprised possible solutions to decrease risk. We also discussed Macy’s current ESG and cybersecurity procedures and …

Ideas For Estate And Transition Planning: Gifting Ownership, Jessica J. Groskopf

Cornhusker Economics

For many farm and ranch families, bringing children or grandchildren into the operation is the ultimate goal. Successfully bringing additional family members into the operation may require some creativity as all parties need to maintain a viable standard of living. This article is part of a series that will highlight ideas and tactics for bringing another family member into the operation. If this is the first article you are seeing in this series, I would encourage you to go back to the for background and additional guidance.

A strategy that is gaining popularity is the gifting of shares or a …

Lessons Learned: Guillermo Ortiz Martínez, Mercedes Cardona

Journal of Financial Crises

Guillermo Ortiz Martínez served as undersecretary of finance and public credit in Mexico’s federal government from 1988 to 1994. He became secretary in December 1994 in the administration of Ernesto Zedillo and served until December 1997. As undersecretary, he was president of the bank privatization committee and the chief negotiator for Mexico during the North American Free Trade Agreement (NAFTA) negotiations in 1991 to 1993. He was governor of the Bank of Mexico from January 1998 to December 2009 and is currently partner and member of the board of BTG Pactual, a Brazilian investment bank. This Lesson Learned summary is …

Lessons Learned: Paul Boothe, Mary Anne Chute Lynch

Journal of Financial Crises

Paul Boothe served as Canada’s senior associate deputy minister of industry during the Global Financial Crisis (GFC) of 2007–2009. Boothe led the Canadian federal government’s negotiation team during the restructuring talks with Chrysler and General Motors (GM). He also negotiated with the Canadian Auto Workers (CAW), a union that included Tier 1 auto parts suppliers for all the major auto manufacturers worldwide. Canada aligned with the United States government to rescue the auto manufacturers and provided 20% of the funding to rescue the corporations and suppliers. From 2004 to 2005, Boothe served as the associate deputy minister of finance and …

Lessons Learned: Daniela Klingebiel, Yasemin Sim Esmen

Journal of Financial Crises

Daniela Klingebiel was principal portfolio manager with the World Bank’s Pension and Endowment Department, Hedge Funds, during the Global Financial Crisis. Throughout her career, she has written many papers on financial crises, comparing various governments’ attempts to manage them and dissecting what has worked and why. This Lessons Learned summary is based on an interview with Klingebiel held on February 4 and March 3, 2021.

Lessons Learned: Bo Lundgren, Maryann Haggerty

Journal of Financial Crises

Bo Lundgren was Sweden’s cabinet minister for fiscal and financial affairs from 1991 to 1994, making him a key leader in managing the nation’s severe financial crisis during those years. Lundgren had a decades-long political career as a member of the Swedish Parliament from 1975 to 2004, was leader of the Moderate Party (1999–2003), and vice president of the European People’s Party in the European Union. He also served from 2004 to 2013 as director general of the Swedish National Debt Office, the country’s central financial agency. Drawing on his experiences in the Swedish crisis, Lundgren has shared his views …

Lessons For The Discount Window From The March 2023 Bank Failures, Susan Mclaughlin

Journal of Financial Crises

The speed of the bank runs that occurred in the United States in March 2023 took most by surprise. The ensuing policy debate about reform has focused very little on the role of the Federal Reserve’s discount window and how it could be made more fit for purpose in mitigating risks to financial stability emanating from the banking system. Making the discount window a more effective financial stability tool will require actions both to reduce the stigma associated with borrowing and improve the operational agility and readiness of the Fed as lender and banks as borrowers. A number of frictions …