An influential emerging literature, led by Bolton and Kacperczyk (2021a), documents strong correlations between unscaled raw emissions and both stock returns and operating performance. We re-examine that data, using a sample of 2,729 U.S. firms from 2005-2019, and conclude that the associations...

Does ‘voluntary’ stakeholder governance (or conscious capitalism) benefits all stakeholders? Using the state-level staggered adoption of constituency statutes as a quasi-exogenous shock to corporate governance, we find that discretionary adoption of ‘stakeholder governance’ leads to...

Before directly addressing the Response to critique and further elaboration (hereafter “Comment”), written by Patrick Bolton and Marcin Kacperczyk (BK), a few thanks are in order. First, we thank the editor, Alex Edmans, both for providing BK the opportunity to directly comment on our paper...

The theory of sustainable investing proposes that investors are willing to take lower returns because they relish holding green assets, which hedge climate risk by encouraging pro-environmental outcomes. We test this proposition using a large sample of green bonds and find three exciting...

This paper examines the costs and benefits of ‘stakeholder governance’ for shareholders and other stakeholders by using the adoption of constituency statutes as a quasi-exogenous shock to corporate governance. Constituency statutes permit board members to consider all stakeholder interests,...

Do changes in the IPO regulatory environment affect private firms' exit choices, bargaining abilities, and valuations? Using the JOBS Act as an exogenous shock to the exit decisions among private firms, we observe that their valuations as M&A targets increase by 36% after the Act, negatively...

This paper examines whether similarity in social identities between a manager and the board affects executive compensation, firm value, and agency frictions. By using a novel dataset on surnames with multiple identities (native language, native place, and caste), developed by merging micro...