Working Paper
Structural Corporate Degradation Due to Too-Big-to-Fail Finance
Corporate governance incentives at too-big-to-fail financial firms deserve systematic examination. For industrial conglomerates that have grown...
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Competition Theory of Risk Management Failures
We study a model in which firms compete preemptively for trading opportunities and risk management introduces latency in trading. As the time pressure...
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Governance of Financial Services Outsourcing: Managing Misconduct and Third-Party Risks
With financial institutions increasingly outsourcing their activities, they face a record number of fraud and misconduct cases arising from...
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Credit, Crises and Infrastructure: The Differing Fates of Large and Small Businesses
This essay sheds new light on the importance of credit creation infrastructure in determining who actually receives government support during periods...
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Banks and Labor as Stakeholders: Impact on Economic Performance
Traditionally, the impacts of the rights of financial institutions and workers on corporate performance have been analyzed independently. Yet,...
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Systemic Harms and Shareholder Value
The financial crisis has demonstrated serious flaws in the corporate governance of systemically important financial firms. In particular, the...
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The Broken Buck Stops Here: Embracing Sponsor Support in Money Market Fund Reform
Since the 2008 financial crisis, in which the Reserve Primary Fund “broke the buck,” money market funds (MMFs) have been the subject of ongoing...
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Incentive Pay and Systemic Risk
We show that, in the presence of correlated investment opportunities across firms, risk sharing between firm shareholders and firm managers leads to...
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FinTech and The Law & Economics of Disintermediation
As FinTech promises to increase competition for both banks and investment firms, we consider the market failures that emerge from its existence,...
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