This paper characterizes profit shifting behavior across the size distribution of multinational enterprises (MNEs) to evaluate the targeting of the recently introduced Global Minimum Tax (GMT). Using German microeconomic administrative data with no reporting gaps for tax havens, we first...

Earlier conceptual studies suggest that the “lifecycle” of a policy bubble moves through three phases: emergence, maturity and lock-in, and termination. Although the best way to move forward is a rigorous empirical investigation, such future endeavors require a theory to guide them. Drawing...

In this paper, we attempt to understand whether business group affiliation continues to create value with improvements in institutional environment, especially with increased product market competition. This question comes at a time when there is growing awareness that business groups dominate...

To reduce the risk of another financial crisis, the Dodd-Frank Act requires that trading in certain derivatives be backed by clearinghouses. Critics mount two main objections: a clearinghouse shifts risk instead of reducing it; and a clearinghouse could fail, requiring a bailout. This Article's...

Manuscript Type: ConceptualResearch Question/Issue: How can increased environmental complexity be managed better through more effective integration of corporate governance and CSR? What are the deficiencies of the predominant corporate governance architecture with regard to CSR support and how...

This paper studies the value and optimal timing for investment in finite-lived monopolies, extending the literature on real option games by considering the cases of random and certain-lived monopolies. Under these settings, firms face the risk of demonopolization, that can occur as a random or a...

Estimates of the expected return on equities are of central importance for capital budgeting purposes, actuarial calculations (expected wealth) and, in countries with regulated utilities, for setting the allowed rate of return. The starting point for any of these purposes is the simple annual...

This study presents compelling experimental evidence indicating that the core intertemporal choice anomalies, encompassing extreme short-run impatience, present bias, hyperbolicity, and transitivity violations, are primarily attributable to complexity rather than time or risk preferences....

With data on Chinese Listed firms, I study the dynamics between government subsidies and financial investment. The findings elucidate a deviation exhibited by managers in terms of their proclivity for financial investment subsequent to the reception of subsidies. By employing deep neural...

We analyze jointly optimal carbon pricing and leverage regulation in a model with financial constraints and endogenous climate-related transition and physical risks. The socially optimal emissions tax is below the Pigouvian benchmark (equal to the direct social cost of emissions) when emissions...