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Can Corporations Be Trusted? Voluntary Compliance And The Limits Of Non-Coercive Business Regulation, Yuval Feldman Jan 2026

Can Corporations Be Trusted? Voluntary Compliance And The Limits Of Non-Coercive Business Regulation, Yuval Feldman

American University Business Law Review

This Article extends the voluntary compliance framework developed in Can the Public Be Trusted? The Promise and Perils of Voluntary Compliance, to the corporate context. While recent scholarship has explored when states can rely on non-coercive regulatory approaches with individual citizens, comparatively little attention has been paid to whether these insights translate to business entities. This Article argues that corporations present both greater challenges and greater opportunities for voluntary compliance regimes. On one hand, the instrumental orientation of corporate decision-making, amplified by fiduciary duties and competitive pressures, may systematically undermine the intrinsic motivations that voluntary compliance frameworks depend upon. Drawing …


Blame It On The Algorithm (But Sue Them Both): Joint Enterprise And Agency In Ai-Driven Hiring Discrimination, Khushi Palan Jan 2026

Blame It On The Algorithm (But Sue Them Both): Joint Enterprise And Agency In Ai-Driven Hiring Discrimination, Khushi Palan

American University Business Law Review

The proliferation of artificial intelligence (AI) in hiring processes has created a significant accountability gap in employment discrimination law. While federal statutes like Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act focus on finding liability for traditional employers, they fail to adequately address the unique role of third-party AI vendors whose algorithms often drive discriminatory outcomes. This Comment examines the emerging legal landscape through the lens of Mobley v. Workday, where the District Court for the Northern District of California recognized that AI vendors can function as “agents” of …


Public Facing, Privately Shielded: The Employment Gap Created By Title Vii’S Private Club Exemption, Ansley Salmon Jan 2026

Public Facing, Privately Shielded: The Employment Gap Created By Title Vii’S Private Club Exemption, Ansley Salmon

American University Business Law Review

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination by employers but exempts “bona fide private membership clubs” that are tax-exempt under Internal Revenue Code Section 501(c). Despite this seemingly clear statutory language, there is a notable lack of appellate decisions interpreting this exemption under Title VII. This scarcity of precedent has led to inconsistent approaches across circuits. For example, the Fifth Circuit has drawn heavily from the Private Club Exemption under Title II of the Civil Rights Act while the Seventh Circuit has treated the two exemptions as entirely distinct. This Comment argues that the Title …


The Tech-Nuclear Renaissance: A New Critical Juncture For American Nuclear Energy Policy, Henry P. Otte Jan 2026

The Tech-Nuclear Renaissance: A New Critical Juncture For American Nuclear Energy Policy, Henry P. Otte

CMC Senior Theses

Nuclear energy has re-emerged as a central priority in American energy policy. This thesis examines the Trump administration’s efforts to support nuclear energy development and plant restarts, and asks whether today’s nuclear renaissance represents a critical juncture for nuclear energy policy. By analyzing American, French, and Swedish nuclear energy history, this thesis applies a three-variable analytical framework, state autonomy and administrative structure, political permeability, and crisis influence, to identify the institutional conditions necessary for durable policy change and evaluate the structural characteristics of this new environment. The central finding is that today’s push is distinct from prior attempts at expansion, …


The Investor Perspective Of Materiality, Sam Lessinger Jan 2026

The Investor Perspective Of Materiality, Sam Lessinger

Honors Undergraduate Theses

Often auditors are asked to adopt the reasonable investor perspective in their materiality evaluations however, there is no consensus regarding what investors deem to be material. This can lead to confusion in the markets. In fact, past studies have shown how taking an investor perspective can backfire and may result in more leniency and fewer misstatements being deemed material by auditors. This leniency can, potentially, result in financial statements that mislead investors. The aim of this paper is to address the reasonable investor perspective to achieve a more complete understanding of an investor’s viewpoint. This study also incorporates the effect …


Financial Literacy And Inclusion Of Philippine Jeepney And Tricycle Drivers, Bryan N. Bernabe, Jyro B. Triviño Jan 2026

Financial Literacy And Inclusion Of Philippine Jeepney And Tricycle Drivers, Bryan N. Bernabe, Jyro B. Triviño

Leadership and Strategy Faculty Publications

The study investigated how the different elements of financial literacy influence the financial inclusion of jeepney and tricycle drivers in Caloocan, Metro Manila. Pearson correlation analysis revealed a positive correlation between financial inclusion and attitude, behavior, knowledge, and skills. Additionally, analysis of variance highlighted that education and age play significant roles in enhancing financial literacy. The linear regression findings also supported the idea that income acts as a positive moderator, augmenting the impact of financial literacy on financial inclusion. The study attempted to disaggregate its financial literacy components to understand their impact on financial inclusion, but its interrelationships also require …


Filipino Teachers’ Grit And Organizational Resilience During The Covid-19 Pandemic, Jyro B. Triviño, Moses G. Manalang Jan 2026

Filipino Teachers’ Grit And Organizational Resilience During The Covid-19 Pandemic, Jyro B. Triviño, Moses G. Manalang

Leadership and Strategy Faculty Publications

This study explores the relationship between employee grit and organizational resilience, focusing on perceptions from Filipino teachers during the COVID-19 pandemic. Utilizing a quantitative survey, data from 108 teaching faculty from a Southern Luzon university were analyzed using Spearman correlation to identify potential associations between these constructs. Findings reveal significant but weak to moderate correlations between dimensions of grit and facets of organizational resilience. Notably, adaptability to situations emerged as the most substantial grit component linked to organizational resilience, indicating its critical role in fostering organizational adaptability and planning strategies during uncertain times. The results suggest that individuals with high …


Lost In The Language: Data Breaches And The Strategic Fog Of Risk Disclosures, Ling Tuo, Shipeng Han Jan 2026

Lost In The Language: Data Breaches And The Strategic Fog Of Risk Disclosures, Ling Tuo, Shipeng Han

Accounting Faculty Publications

This study examines whether firms strategically adjust the readability of Item 1A (“Risk Factors”) disclosures following data breaches. Using U.S. firm-year observations from 2006 to 2023, we find that data breaches are associated with a significant decline in Item 1A readability. This decline is not accompanied by a meaningful increase in informational content; instead, post-breach disclosures exhibit higher syntactic complexity, more positive tone, and lower textual similarity to prior and industry peers' filings, consistent with strategic obfuscation rather than transparent reporting. The readability decline is amplified among firms facing higher litigation risk but attenuated among firms with stronger reputations for …


Brief #2: Collaborative Aggregation & Marketing Of Local Farm Food: A Qualitative Analysis Of Customer Relations Strategies, Evan England, Rachel Filippone, Hannah Stokes-Ramos, Cindy (Luyue) Zheng, Olivia Burton, Analena B. Bruce Jan 2026

Brief #2: Collaborative Aggregation & Marketing Of Local Farm Food: A Qualitative Analysis Of Customer Relations Strategies, Evan England, Rachel Filippone, Hannah Stokes-Ramos, Cindy (Luyue) Zheng, Olivia Burton, Analena B. Bruce

Food Practice Research

No abstract provided.


Dental Professionalism In A Changing World: Challenges & Opportunities, Robert P. Iovino, Dds, Ma Dds, Ma Jan 2026

Dental Professionalism In A Changing World: Challenges & Opportunities, Robert P. Iovino, Dds, Ma Dds, Ma

Journal of the American College of Dentists

This manuscript examines the erosion of traditional dental professionalism amid rising educational costs, declining membership in professional associations, and the growing influence of corporate ownership and private equity in dentistry. Drawing perspectives from economics, sociology, philosophy, law, and ethics, it traces the historical development of professional licensure and its role in safeguarding clinical autonomy, ethical integrity, and public trust. The analysis highlights how deregulation and profit-driven practice models challenge the profession’s social contract. The manuscript argues that preserving strong civic institutions, restrictive licensure standards, and humanities-informed education is essential to sustaining dentistry as a learned profession rather than a commodified …


How Dentists Can Remain Advisors Of Merit To Their Patients, Daniel L. Orr Ii, Dds, Ms (Anesth), Phd, Jd, Md, Facd (Nevada Section Chair) Jan 2026

How Dentists Can Remain Advisors Of Merit To Their Patients, Daniel L. Orr Ii, Dds, Ms (Anesth), Phd, Jd, Md, Facd (Nevada Section Chair)

Journal of the American College of Dentists

This article examines how members of the dental profession can sustain their longstanding reputation as trusted advisors amid declining public confidence in major institutions. Grounded in ethical principles, informed consent, and professional self-regulation, dentistry has historically ranked among the most trusted professions. The discussion explores challenges to credibility, including media scrutiny, concerns about anesthesia safety, controversial treatment hesitancy, and debates over community water fluoridation. Emphasizing the concept of the “advisor of merit,” the author argues that continued trust depends on truthful communication, transparency about risks, respect for patient autonomy, and freedom from conflicts of interest in clinical and public health …


J Am Coll Dent 2026 92 4 Jan 2026

J Am Coll Dent 2026 92 4

Journal of the American College of Dentists

The Journal of the American College of Dentists (JACD) publishes scholarly articles, editorials, essays, and reflections addressing the ethical, professional, and social dimensions of dentistry. The Journal serves as a forum for advancing ethics, professionalism, leadership, and excellence within the dental community. By fostering dialogue across disciplines and perspectives, JACD provides readers with insights that encourage ethical, professional practice, lifelong learning, and service to the public, reinforcing dentistry’s commitment to advancing oral healthcare and the common good.


Core Standards For Leadership In Oral Healthcare, Sir Nairn H.F. Wilson Cbe Dsc(H.C.) Ddent(H.C.) Phd Msc Bds Fcgdent Fds Rcs Edin, Eng(Hon) & Rcps Glasg(Hon) Ffd Rcsi(Hon) Fcdshk(Hon) Fracds(Hon) Drd Fhea Facd Ficd Fadm Fpfa Frsm Fkc Jan 2026

Core Standards For Leadership In Oral Healthcare, Sir Nairn H.F. Wilson Cbe Dsc(H.C.) Ddent(H.C.) Phd Msc Bds Fcgdent Fds Rcs Edin, Eng(Hon) & Rcps Glasg(Hon) Ffd Rcsi(Hon) Fcdshk(Hon) Fracds(Hon) Drd Fhea Facd Ficd Fadm Fpfa Frsm Fkc

Journal of the American College of Dentists

This article introduces the American College of Dentists’ core standards for leadership in oral healthcare, grounded in well-established ethical principles and in response to ever-increasing expectations for patient-first care. It is suggested that the new standards must be consistently upheld to maintain patient trust and professional credibility. Effective leadership, in contrast to management, improves patient engagement and outcomes, team performance, and resilience. The article calls for more leadership training in dentistry, beginning in dental schools, and highlights the need for effective leadership in oral healthcare to strengthen the profession’s standing and status.


Standards For Leadership In Oral Health Care. A Project Of The Board Of Regents Of The American College Of Dentists, Robert A. Faiella Dmd, Mmsc., Mba, Teresa A. Dolan Dds, Mph, Facd, N. Karl Haden Phd, Facd, Sreenivas Koka Dds, Ms, Phd, Mba, Mas, Facd, Sir Nairn H.F. Wilson Cbe Dsc(H.C.) Ddent(H.C.) Phd Msc Bds Fcgdent Fds Rcs Edin, Eng(Hon) & Rcps Glasg(Hon) Ffd Rcsi(Hon) Fcdshk(Hon) Fracds(Hon) Drd Fhea Facd Ficd Fadm Fpfa Frsm Fkc Jan 2026

Standards For Leadership In Oral Health Care. A Project Of The Board Of Regents Of The American College Of Dentists, Robert A. Faiella Dmd, Mmsc., Mba, Teresa A. Dolan Dds, Mph, Facd, N. Karl Haden Phd, Facd, Sreenivas Koka Dds, Ms, Phd, Mba, Mas, Facd, Sir Nairn H.F. Wilson Cbe Dsc(H.C.) Ddent(H.C.) Phd Msc Bds Fcgdent Fds Rcs Edin, Eng(Hon) & Rcps Glasg(Hon) Ffd Rcsi(Hon) Fcdshk(Hon) Fracds(Hon) Drd Fhea Facd Ficd Fadm Fpfa Frsm Fkc

Journal of the American College of Dentists

This section of the Journal of the American College of Dentists presents professional conference proceedings and/or published guidelines relevant to dentistry, ethics, education, leadership, policy, or clinical care. Conference proceedings may also include documents from affiliate organizations in dentistry.


Empathy And Human-Centered Leadership In Community Health Center Dental Clinics, Pamela S. Alston Dds, Mpp, Facd Jan 2026

Empathy And Human-Centered Leadership In Community Health Center Dental Clinics, Pamela S. Alston Dds, Mpp, Facd

Journal of the American College of Dentists

A person-centered approach, with empathy toward patients, can improve satisfaction among both patients and dental health professionals. A dental director with a human-centered leadership style can improve the well-being of oral health team members. This article describes the role that empathy, a core value of humanism and professionalism, plays in accomplishing these improvements in community health center dental clinics. This article also describes the risks of empathy, as experienced by the author in her role as a dental director and practitioner, as well as documented in the literature. It further focuses on dental directors’ human-centered approaches to supporting oral health …


Timing Whistleblowing, Andrew K. Jennings Jan 2026

Timing Whistleblowing, Andrew K. Jennings

Faculty Articles

Whistleblower programs (WBPs) expose hidden corporate wrongdoing. They do so by offering retaliation protection and financial bounties to those who bring original information to law enforcement about unseen, and often complex, misconduct. Under a standard account, whistleblowing serves the public interest by increasing the ex post detection of illegal activity and the ex ante risk of its exposure. That standard view—which centers whistleblowing on detecting wrongdoing—is incomplete, however. To present a fuller view, this Article introduces a complementary model that refocuses whistleblowing as preventing wrongdoing. Working together, these models show that a WBP can do more than enable detection at …


Steady As She Goes: Remote Work Benefits Daily Goal Progress Through Reduced Energy Variability, Andrew A. Bennett, Kathleen R. Keeler, Emily D. Campion, Sheila K. Keener Jan 2026

Steady As She Goes: Remote Work Benefits Daily Goal Progress Through Reduced Energy Variability, Andrew A. Bennett, Kathleen R. Keeler, Emily D. Campion, Sheila K. Keener

Management Faculty Publications

As the prevalence and allowance of remote and hybrid work evolves, research has shown consistently mixed findings about how work location is related to worker energy and perceptions of daily performance. We aim to resolve this ambiguity by integrating affective events theory with ideas about emotion dynamics to develop new theorizing explaining why energy variability, rather than mean energy level, is an important predictor of daily goal progress. We test our hypotheses using a sample of 219 employees from one organization allowing remote and hybrid work, capturing individual hourly energy levels for five consecutive workdays (4,812 hourly observations). Our …


Beyond Price: How Platform Power Shapes Demand Allocation In Online Hotel Channels, Ling Ling, Timothy Webb, Zvi Schwartz Jan 2026

Beyond Price: How Platform Power Shapes Demand Allocation In Online Hotel Channels, Ling Ling, Timothy Webb, Zvi Schwartz

Human Movement Studies & Special Education Faculty Publications

Rate disparity remains a widely used but poorly understood pricing strategy in the hotel industry. While previous research generally assumes that lower prices shift demand toward less expensive channels, this study investigates whether such effects occur in practice. Using high-frequency booking and pricing data from five full-service hotels across multiple online travel agencies (OTAs), we analyze how rate disparity relates to the distribution of demand across channels. The findings show that the impact of price differences is limited, highly non-linear, and strongly dependent on contextual factors. Channel market power and hotel-specific characteristics seem to play a more significant role than …


Lied Center For Performing Arts Strategic Analysis, Daniel Cutler Jan 2026

Lied Center For Performing Arts Strategic Analysis, Daniel Cutler

Honors Program: Senior Projects (Public)

This video essay develops a strategic analysis of the Lied Center for Performing Arts through an interview with an associate director at the Center, personal experiences working for the Center, and other external research. It starts with an introduction to the Lied Center, including its mission, vision, and activities. Using strategic frameworks, namely PESTEL analysis and Porter’s Five Framework, a general analysis of the Center’s industry is conducted. These frameworks demonstrate the difficult landscape the Center finds itself in, with some of the more notable struggles stemming from economic factors and competition from other entertainment venues. From there, suggestions and …


The Professional Constructor, Full Issue Jan 2026

The Professional Constructor, Full Issue

The Professional Constructor

Full Issue, Winter 2026

Volume 50, Number 01


When Money Moves In: The Consequences Of Housing Wealth, Darren Aiello, Jason Kotter, Gregor Schubert Jan 2026

When Money Moves In: The Consequences Of Housing Wealth, Darren Aiello, Jason Kotter, Gregor Schubert

Faculty Publications

We construct a novel dataset of millions of household moves over 25 years to examine how housing wealth affects purchase decisions. We find that a $1 exogenous increase in housing equity leads movers to pay a $0.06 premium on their next home, controlling for property characteristics and time-varying local prices. This behavior is driven by search frictions— wealthier households pay a premium rather than incur additional search costs. In aggregate, these decisions spill over to the broader housing market and cause upward regional price pressure. A 10% increase in equity gain among incoming movers increases local house price growth by …


Evolving Paradigms Of Sustainability In Luxury Fashion: Evidence From An Emerging Market, Sandipan Sen, Sphurti Sewak, Swati Singh, Moutusy Maity, Aniruddha Pangarkar Jan 2026

Evolving Paradigms Of Sustainability In Luxury Fashion: Evidence From An Emerging Market, Sandipan Sen, Sphurti Sewak, Swati Singh, Moutusy Maity, Aniruddha Pangarkar

Faculty Publications – Marketing

The global fashion industry is both an economic driver and a major contributor of environmental and social challenges. This research examines how sustainable luxury fashion is constructed and adopted within an emerging market context by integrating perspectives from entrepreneurs, industry managers, and consumers. Utilizing a mixed-methods approach and drawing upon Self-Identity Theory and need for uniqueness, this research explores how identity-based motivations shape sustainable luxury consumption. Study 1 employs in-depth interviews with luxury fashion entrepreneurs and practitioners to uncover how sustainability is embedded within luxury value propositions. Building on these insights, Study 2 quantitatively tests a conceptual model examining the …


Exploring Management Strategies To Reduce Workplace Violence: Perceptions Of Illinois Healthcare Professionals, Mary Mack Jan 2026

Exploring Management Strategies To Reduce Workplace Violence: Perceptions Of Illinois Healthcare Professionals, Mary Mack

All Student Theses and Dissertations

This qualitative study examined how managers of nonprofit healthcare facilities in the Chicago metropolitan area implement strategies to reduce workplace violence, what these strategies are and how they are carried out, and what organizational factors facilitate or impede their implementation. Semi-structured interviews were conducted with seven healthcare professionals in management or safety-oriented roles across seven facilities, purposefully sampled through the researcher's professional network. Findings revealed four recurring patterns across the sample. Prevention infrastructure was installed reactively, following specific triggering incidents rather than anticipating documented risk. Facilities consistently favored lower-cost mitigation measures over more resource-intensive prevention strategies. Reliance on short-tenure contract …


Bridging Mission And Execution: Integrating Participatory Design In Early-Phase Mission Engineering For Stakeholder Alignment And Mission Clarity, Rafi Soule Jan 2026

Bridging Mission And Execution: Integrating Participatory Design In Early-Phase Mission Engineering For Stakeholder Alignment And Mission Clarity, Rafi Soule

Knowledge and Creativity Expo

This research examines mission framing during the early phase of Mission Engineering. Stakeholder interpretations diverge under ambiguity. Interoperability constraints are often not surfaced early. These conditions reduce mission clarity and weaken mission-to-system mapping readiness. The study integrates a participatory design-inspired, artifact-first workflow with RAG-enabled retrieval from a closed corpus to support evidence-grounded reasoning and traceable citations.

Phase 1 uses an online survey to establish baseline patterns in practice (N = 86). Shared understanding is positively associated with mission clarity (r = 0.60, p < 0.001). Phase 2 uses a time-bounded comparative workshop with two conditions. Expert reviewers rate mission statement quality higher for the participatory design condition (mean 3.5) than the traditional condition (mean 2.8). Technical feasibility ratings are similar across conditions. Phase 3 demonstrates RAG-enabled, closed-corpus, retrieval-supported traceability using the Referencer tool. It is reported as a proof-of-concept for evidence-grounded rationale and auditability, and as a pathway …


Neuroattnfusenet Dual Branch Attention Fusion For Brain Tumor Mri Classification, Md Sanowar Hossain Sabuj, Farzana Sultana, Md Hasan Or Rashid, Rahul Mudhiraj Mullela Jan 2026

Neuroattnfusenet Dual Branch Attention Fusion For Brain Tumor Mri Classification, Md Sanowar Hossain Sabuj, Farzana Sultana, Md Hasan Or Rashid, Rahul Mudhiraj Mullela

Student Publications

Brain tumor MRI classification remains challenging because tumor appearance varies across cases, class boundaries can be visually subtle, and public 2D MRI datasets may contain redundancy or source-specific biases that inflate reported performance. This study proposes NeuroAttnFuseNet, a dual-path attention-guided fusion network for four-class MRI image classification into glioma, meningioma, pituitary, and no tumor. The model combines a Swin-T branch for hierarchical local morphological representation with a frozen DINOv2 ViT-B/14 branch that provides a 768-dimensional global descriptor from the [CLS] token. The Swin and DINOv2 features are concatenated and passed through a channel-attention gate and fusion MLP before final softmax …


Freedom Of Expression Protection And Corporate Concealment Of Bad News: Evidence From State Anti-Slapp Laws, Jimmy Lee, Shaphan Ng, Il Sun Yoo, Liandong Zhang Jan 2026

Freedom Of Expression Protection And Corporate Concealment Of Bad News: Evidence From State Anti-Slapp Laws, Jimmy Lee, Shaphan Ng, Il Sun Yoo, Liandong Zhang

Research Collection School Of Accountancy

The protection of free speech enhances the ability of various public stakeholders to disseminate privately observed adverse information about public firms, making it difficult for corporate managers to conceal negative information about their companies. Using the staggered enactment of anti strategic lawsuit against public participation (anti-SLAPP) laws across U.S. states as a shock that strengthens free speech protection, we show that stronger protection is associated with less concealment of bad news. This is evidenced by a lower likelihood of stock price crashes, a decreased probability of accounting fraud, and an increased frequency of firm-initiated negative press releases. These results are …


Peer Effects Of Corporate Disclosures: Evidence From The Registration-Based Ipo System In China, Ruilin Liu, Beng Wee Goh, Dan Li, Zheyuan Zhang Jan 2026

Peer Effects Of Corporate Disclosures: Evidence From The Registration-Based Ipo System In China, Ruilin Liu, Beng Wee Goh, Dan Li, Zheyuan Zhang

Research Collection School Of Accountancy

China launched the registration-based IPO system in 2019 whereby all firms listed on the newly established STAR board (“peer firms”) are required to disclose specific innovation and industry-related information in their prospectus. Using this event as a quasi-experiment, our study investigates the causal effects of peer firms’ disclosures on individual firms’ disclosure strategy. We find that individual firms’ management earnings forecast (MEF) precision, both its form and width, significantly decreases when peer firms disclose more information during the IPO period. In cross-sectional analyses, we find this effect to be more pronounced for individual firms that are likely to experience greater …


Algorithm Envelopment In Platform Markets, Liang Chen, Zhou Zhou, Lester Chan Jan 2026

Algorithm Envelopment In Platform Markets, Liang Chen, Zhou Zhou, Lester Chan

Research Collection Lee Kong Chian School Of Business

The theory of platform envelopment rests on network effects as the key mechanism for value creation, which nonetheless receives mixed support for its efficacy in determining competitive outcomes. We argue that the value of network effects depends on matching quality, which is a function of platform-specific algorithm technology and market-level data-driven learning. In formalizing these conceptualizations, we analyze a model that demonstrates how an entrant with a superior algorithm technology may outcompete an incumbent possessing a user base advantage, a strategy we call “algorithm envelopment.” By considering specific characteristics of data-driven learning, our analysis leads to propositions regarding the entry …


The Effects Of Financing Green And Brown Sectors: What Do Theories And Evidence Say?, Hao Liang, Maria Teresa Punzi Jan 2026

The Effects Of Financing Green And Brown Sectors: What Do Theories And Evidence Say?, Hao Liang, Maria Teresa Punzi

Research Collection Lee Kong Chian School Of Business

This paper critically examines the economic and welfare implications of financing green and brown sectors. Drawing on a comprehensive review of recent theoretical and empirical literature, we highlight that while conventional green finance—allocating capital toward environmentally friendly (“green”) sectors and away from carbon-intensive (“brown”) sectors—can promote decarbonization, it may also produce unintended externalities. In particular, it can inadvertently incentivize higher emissions from brown firms and contribute to economic disruption. Using a dynamic stochastic general equilibrium (DSGE) model, we demonstrate that lowering the cost of capital for green sectors leads to only modest reductions in emissions, whereas raising it for brown …


Policy Uncertainty Reduces Green Innovation, Mengyu Wang, Jeffrey Wurgler, Hong Zhang Jan 2026

Policy Uncertainty Reduces Green Innovation, Mengyu Wang, Jeffrey Wurgler, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Policy uncertainty can undermine the power of government subsidies to stimulate environmentally friendly research and development. We show that Chinese firms’ green R&D falls as the uncertainty of environmental subsidies rises: Exogenous, weather-driven air pollution variability induces subsidies to fluctuate, and firms in areas with high weather-driven subsidy variability undertake less green R&D and hire fewer technical employees, controlling for the average level of subsidies. Heavy emitters and environmental technology firms are more affected. The results also illustrate how policy uncertainty can arise when policymakers are influenced by conditions that are salient but with causes that are difficult to disentangle.