Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Audited Financial Reporting and Voluntary Disclosure as Complements

In the paper, Audited Financial Reporting and Voluntary Disclosure as Complements: A Test of the Confirmation Hypothesis, which was recently made publicly available on SSRN, we examine the hypothesis that audited financial reporting and voluntary disclosure of managers’ private information are complementary mechanisms for communicating with investors, not substitutes. More specifically, we test the hypothesis […]

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Posted in Academic Research, Accounting & Disclosure, Empirical Research | Tagged , , | 1 Comment

The SEC Departs from an Important Safeguard

Recently, the SEC made permanent the delegation of its statutory formal order investigation authority to the Director of the Division of Enforcement. This delegation, which the Enforcement Director has sub-delegated to senior enforcement staff, essentially transfers the SEC’s broad authority to invoke its subpoena power to numerous of its enforcement staff without any apparent oversight. […]

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Posted in Practitioner Publications, Securities Litigation & Enforcement | Tagged , , | 1 Comment

Subprime Crisis and Board (In-)Competence

In the paper, Subprime Crisis and Board (In-)Competence: Private vs. Public Banks in Germany, which was recently made publicly available on SSRN, we examine evidence for a systematic underperformance of Germany’s state-owned banks in the current financial crisis and study if the bank losses can be traced to the quality of bank governance. For this […]

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Posted in Academic Research, Banking & Financial Institutions, Empirical Research, Financial Crisis, International Corporate Governance & Regulation | Tagged , , , , , , | 1 Comment

Proxy Plumbing Fixes are Desperately Needed

The U.S. proxy system is set to undergo a comprehensive review for the first time in nearly 30 years. The Securities and Exchange Commission (SEC) recently voted unanimously to issue a concept release “seeking public comment on the U.S. proxy system and asking whether rule revisions should be considered to promote greater efficiency and transparency.” […]

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Posted in Corporate Elections & Voting, Practitioner Publications | Tagged , , , , , | 1 Comment

Finally, Governance Becomes Possible

Thirty years late, the new Dodd-Frank Act hands shareholders power to influence the composition of boards and shape CEO pay. But will these institutional investors, on whom Americans depend for their financial security, use their authority responsibly? Will corporate boards welcome and accept good faith dialogue with their shareholders? Will both sides forego short term […]

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Posted in Corporate Elections & Voting, Financial Regulation, Institutional Investors, Legislative & Regulatory Developments, Op-Eds & Opinions, Practitioner Publications | Tagged , , | 1 Comment

Corporate Tax Avoidance and Stock Price Crash Risk

In the paper, Corporate Tax Avoidance and Stock Price Crash Risk: Firm-Level Analysis, which is forthcoming in the Journal of Financial Economics, we examine the association between the extent of a firm’s tax avoidance and its future stock price crash risk. Recently, Desai, Dyck, and Zingales (2007) and Desai and Dharmapala (2006) put forth a […]

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Regulating UK Bankers’ Pay

Introduction On 29 July 2010, the UK’s Financial Services Authority (the “FSA”) published a consultation paper which sets out proposals to make significant amendments to its existing Remuneration Code (the “Code”). [1] If implemented in the proposed form, these revisions will have a significant impact on how remuneration policies and practices at UK financial institutions […]

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Posted in Banking & Financial Institutions, Executive Compensation, International Corporate Governance & Regulation, Practitioner Publications | Tagged , , , , , | 1 Comment

Dodd-Frank’s Dangers and the Case for a Systemic Emergency Insurance Fund

In light of the liquidation strategy for failing financial firms set forth in Dodd-Frank, I have now posted a revised version of a forthcoming article calling for a “Systemic Emergency Insurance Fund” to augment the FDIC’s resolution authority. This version, co-authored with Chris Muller, is entitled Confronting Financial Crisis: Dodd-Frank’s Dangers and the Case for […]

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Posted in Academic Research, Banking & Financial Institutions, Bankruptcy & Financial Distress, Financial Crisis, Financial Regulation | Tagged , , , | 1 Comment

Proxy Access Rule Will Lead to Greater Controversy

Editor’s Note: Kathleen L. Casey is a Commissioner at the U.S. Securities and Exchange Commission. This post is based on Commissioner Casey’s statement at a recent open meeting of the SEC, which is available here. The views expressed in the post are those of Commissioner Casey and do not necessarily reflect those of the Securities […]

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Posted in Corporate Elections & Voting, Legislative & Regulatory Developments, Regulators Materials, Securities Litigation & Enforcement | Tagged , | Comments Off on Proxy Access Rule Will Lead to Greater Controversy

Enhancing Corporate Suffrage Through Proxy Access

Editor’s Note: Elisse B. Walter is a Commissioner at the U.S. Securities and Exchange Commission. This post is based on Commissioner Walter’s statement at a recent open meeting of the SEC, which is available here. The views expressed in the post are those of Commissioner Walter and do not necessarily reflect those of the Securities […]

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