Annual Conference

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Sustainable and Green Finance, Senior Fellows/Fellows

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May 2022

Environmental Liabilities, Creditors, and Corporate Pollution: Evidence from the Apex Oil Ruling

Po-Hsuan HSU, Ross LEVINE, Jianqiang CHEN, Pei-Fang HSIEH
We evaluate the impact of the 2008 Apex Oil court decision that made the creditors of some corporations financially liable for the environmental damages caused by specific pollutants. Apex reduced the circumstances under which environmental liabilities were dischargeable in Chapter 11, which generat...
Keywords: environmental liabilities, pollution, creditors, bankruptcy.
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Annual Conference

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Accounting

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May 2025

Enhancing Investor Engagement with AI-Summarized Disclosures

T.J. WONG, Yang YI, Gwen YU, Shubo ZHANG, Tianyu ZHANG
We conduct a field experiment where we provide investors with an AI-generated summary of annual reports during virtual conference calls. We find that providing investors with annual report summaries increases investor participation during the calls. Specifically, treatment firms with AI-generated su...
Keywords: Retail investors, Generative AI, LLMs, information processing costs, field experiment, virtual conference calls
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Annual Conference

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Corporate Finance

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May 2016

Enemy at the Gates: Trade Credit v/s Price Discount as a Strategic Tool

Manpreet SINGH
How do financial constraints affect an incumbent supplier firm's choice of extending more trade credit versus offering price discounts when facing an increased threat of entry from competitors? The threatened incumbent supplier firms may (a) extend more trade credit, ex-ante, to defend their market ...
Keywords: trade credit, limit-pricing, entry threat, Financial constraints
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Webinar Series

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Capital Market Development: China and Asia

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Sep 2024

Empowering through Courts: Judicial Centralization and Municipal Financing in China

Jiayin HU, Wenwei PENG, Yang SU
This study finds that reducing political influence over local courts weakens local government debt capacity. We establish this result by exploiting the staggered roll-out of a judicial centralization reform aimed at alleviating local court capture in China and find reduced judicial favoritism toward...
Keywords: judicial centralization, court capture, lawsuit, public finance, information asymmetry, municipal corporate bond
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Annual Conference

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Corporate Finance

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May 2018

Employee Satisfaction, Labor Market Flexibility, and Stock Returns Around The World

Alex EDMANS, Lucius LI, Chendi ZHANG
We study the relationship between employee satisfaction and stock returns across 30 countries. Employee satisfaction is associated with superior long-run returns in flexible labor markets, such as the US and UK, but not rigid labor markets, such as Germany. Similar results hold for current valuation...
Keywords: Employee Satisfaction, Labor Market Flexibility, Socially Responsible Investing, corporate social responsibility
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