Public policy has played a critical role in creating and shaping global renewable energymarkets. Yet 30 years since the passage of the first federal program in the U.S., under thePublic Utilities Regulatory Policies Act (PURPA), renewable power generation still constitutesless than three percent...

We develop an economic model of "greenwash," in which a firm strategically discloses environmental information and a non-governmental organization (NGO) may audit and penalize the firm for failing to fully disclose its environmental impacts. We identify conditions under which NGO punishment of...

Conditional Value-at-Risk (CVaR) measures the expected loss amount beyond VaR. It has vast advantage over VaR because of its property of coherence. This paper gives an analytical solution in a complete market setting to the risk reward problem faced by a portfolio manager whose portfolio needs...

Many studies have investigated the socioeconomic consequences of residential economic segregation in U.S. urban areas. These studies mainly focus on the impact of economic segregation on the poor or minorities and almost universally find that economic segregation hurts these groups in many ways....

The focus of this paper is three-fold. First, it recalculates the HDI and EFI, use the ratio of HDI and EF to build the EWP, then evaluate and analyze the EWP of China's provinces. Second, it develops a unique ecological well-being performance (EWP) model, which is divided into two driving...

While aggregate earnings should affect aggregate stock returns, standard portfolio theory predicts that the cross-sectional dispersion in firm-level earnings would not affect aggregate stock returns. Nonetheless, this paper demonstrates a surprisingly robust relation between cross-sectional...

his paper develops a theoretical model to understand the contractual role of accounting conservatism in debt contracts. The optimal debt contract includes an accounting based covenant that gives the creditor the right to liquidate when accounting information reveals unfavorable news about the...

This study examines how accounting conservatism may affect the information environment of analysts’ earnings forecasts, taking into account the interaction between unconditional and conditional conservatism. Unconditional conservatism preempts conditional conservatism in the later period and...

This paper examines risk-taking incentives in banks under different accounting regimes with capital regulation. In the model the bank's decisions of capital issuance and investment policy are jointly determined. Given exogenous minimum capital requirement, the bank is more likely to issue equity...

Prior research documents that individual stock returns respond to earnings differently under new accounting standards, regulations, or changes in enforcement. This paper examines whether this result extends to the aggregate stock market. We take a macro perspective and study the properties of...