The debate about how to reconcile political with economic democracy is translated in the framework of wage- and profit-led growth in this paper. The inherent tension between providing sufficient profit incentive to motivate investment by the capitalist class and maintaining electoral...

Downside return risk, or the covariance between stock returns and the market in bad states, performs significantly better compared to the single factor CAPM model. I construct a general equilibrium model and show that the same holds using firm policies rather than stock re-turns....

Purpose: The CPSEs were established by the administration of Indian Govt. to serve macro-economic objectives of our country. They are viewed as a device for growth of the economy with fairness and social justice. Due to unsatisfactory performance of the CPSEs towards fulfillment of the...

Blanket exclusion of "brown" stocks is seen as the best way to reduce their negative externalities, by starving them of capital and hindering their expansion. We show that a more effective strategy may be tilting -- holding a brown stock if it is best-in-class, i.e. has taken a corrective...

Fossil fuel divestment refers to activist-led campaigns aiming to convince large institutional investors to sell their holdings in companies that operate in carbon-intensive sectors and industries. Part of a larger anti-fossil fuel movement, the growing momentum of the fossil fuel divestment...

We show that the 2016 Brexit Referendum had multi-faceted consequences for corporate America, shaping employment, investment, divestitures, R&D, and savings. The unexpected vote outcome led US firms to cut jobs and investment within US borders. Using establishment-level data, we document that...

We show that the 2016 Brexit Referendum had multi-faceted consequences for corporate America, shaping employment, investment, divestitures, R&D, and savings. The unexpected vote outcome led US firms to cut jobs and investment within US borders. Using establishment-level data, we document that...

The debate about how to reconcile political with economic democracy is translated in the framework of wage- and profit-led growth in this paper. The inherent tension between providing sufficient profit incentive to motivate investment by the capitalist class and maintaining electoral...

We examine the actions of financial institutions and firms regarding greenhouse gas emissions. We find that financial institutions around the world reduce their exposure to stocks of high-emission industries after 2015, especially for those located in high-climate-awareness countries, suggesting...

Are divestitures only an ex-post reactive correction of past inefficient acquisitions or are they also an ex-ante proactive strategy to enhance the value of future acquisitions? We find support for the latter. Firms engaging in divestitures before making acquisitions obtain higher abnormal...

This study examines implications for mergers and acquisitions (M&As) by focusing on deals that are subsequently divested. A comprehensive data set on the corporate divorce phenomenon during the past quarter of a century is constructed with financial news as well as SEC filings. Using this...

Many small businesses have closed, lost revenues, or downsized as a response to health and economic disruptions caused by COVID-19. But, were economic losses in the pandemic disproportionately felt by businesses owned by people of color? This paper provides the first study of the impacts of...

Corporate divestiture represents an important component of a firm’s strategy. Divestment takes different forms and is usually undertaken for a variety of general and firm-specific reasons. The objective of this paper is to provide an overview and assessment of the current consensus on the...

The aging of farmers in the US today coincides with fluctuating incomes resulting from recent market price volatility and policy changes. We evaluate how farmers' retirement or exit, as well as their disinvestment from farming in preparation for retirement, are affected by economic and...

A dilemma faced by an increasing number of investors is whether to boycott environmentally damaging businesses or whether to enter into a dialogue with them. This predicament now has its epicentre in Cambridge, England, where the ancient university faces great pressure from students and staff to...

Public higher education produces many benefits that are vital to the New England economy, but it is increasingly at risk following years of state budget cuts. States have reduced funding for higher education to address short-term budget gaps caused by recessions and long-term budget gaps...

This paper asses the ESG and green finance trends and initiatives that are shaping investor appetite for oil production assets and considers the implications for oil markets. It reviews studies that have looked at the evidence of historical data to test whether divestment from fossil fuels could...

We exploit the expiring nature of hedge fund lockups to create a new measure of funding liquidity risk that varies within funds. We find that hedge funds with lower funding risk generate higher returns and this effect is driven by their increased exposure to equity mispricing anomalies. Our...

Through business model theoretical lenses, we explore the impact of de-internationalization on firms and their industries and challenges in re-configuring their business models and re-thinking their value propositions in response to de-internationalization. This is a conceptual paper. We put...