This paper examines the impact of corporate taxes on firms' corporate social responsibility (CSR), by exploiting the staggered changes in corporate taxes across U.S. states as a quasi-natural experiment. Firms enhance CSR performance significantly following tax cuts, but they do not reduce CSR...

We show that firm misvaluation positively affects firm's corporate social responsibility (CSR) ratings. And the positive effect is only significant when firms are heavily overvalued. The result holds when we include net equity issue and net debt issue in the regression, and when we exclude...

We review the burgeoning sustainable finance literature, emphasizing the value implications of ESG (environmental, social, and governance) and CSR (corporate social responsibility) practices. We use a discounted cash flow valuation framework to identify value drivers through which such practices...

The paper shows that US state-level employment nondiscrimination acts (ENDAs) protecting the equal treatment of LGBTs in the workplace have a spillover effect on firms’ non-diversity corporate social responsibility (CSR) performance. We find that product market competition plays an important...

Examining how climate and other environmental regulatory risks affect bond risk and pricing, we find that bond credit ratings and yield spreads appear to be influenced by a firm's environmental performance along with its regulatory conditions. Firms with poor environmental profiles tend to have...

We provide novel evidence that arbitrageurs use exchange-traded funds (ETFs) as an avenue to circumvent short-sale constraints at the stock level. Using a large sample of U.S. equity ETF holdings, we document that shorting activity on ETFs rises with the difficulty of shorting the underlying...