Annual Conference

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Corporate Finance

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May 2021

Firm Boundaries and Political Uncertainty: Evidence from State Elections in India

Arkodipta SARKAR
Using subsidiary-level data for Indian firms and staggered elections across Indian states, I find that political uncertainty’s impact on firm performance varies by organizational form. I find that the gap in leverage ratio between subsidiaries of conglomerate and stand-alone firms widen by 15% in ...
Keywords: Conglomerate, stand-alone, Political uncertainty, Leverage, Misallocation
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Annual Conference

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Corporate Finance

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May 2021

The Political Economy of Anti-Bribery Enforcement

Bo LI, Lauren H. COHEN
This paper documents novel evidence on the influence of political incentives in the regulatory enforcement of foreign bribery. Using exogenous variation in the timing and geographic location of U.S. Congressional elections, we find that the probability of a Foreign Corrupt Practices Act (FCPA) enfor...
Keywords: Alternative Data, Satellite Imagery Data, Dividend Policy, Outcome Model, Substitute Model, Signaling Model, Corporate governance
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2021

Paying Attention to ESG: Evidence from Big Data Analytics

Andrew KAROLYI , Alan KWAN, Wendi HUANG
Environment, social and governance (ESG) issues are increasingly important to investors and ESG data have become the backbone of responsible investing. Yet, ESG ratings feature data quality issues with considerable dispersion among data providers. We propose a new measure based on attention to ESG i...
Keywords: ESG, Big data analytics, intent data, institutional investors.
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Annual Conference

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Corporate Finance

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May 2021

Regulation-Induced CSR

Rik SEN, Vidhi CHHAOCHHARIA, Jing XU
Under a comply-or-explain framework, the Indian Companies Act of 2013 mandated that companies spend 2% of their profits towards CSR. In response, aggregate CSR spending increased substantially and most firms spent non-trivial amounts. These activities had a substantial real impact. On average, INR 1...
Keywords: CSR spending, Sustainability, Education, India
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Annual Conference

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Corporate Finance

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May 2021

Outsourcing Climate Change

Hao LIANG, Rui DAI , Rui DUAN, Lilian NG
This paper exploits newly available information on firms' direct (own production) and indirect (supplier-generated) carbon emission intensities and transaction-level imports to conduct an in-depth analysis of whether and how U.S. firms address climate change. We find robust evidence that U.S. firms'...
Keywords: Outsourcing, Emissions, Import, Pricing and Welfare Implications
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