In recent times, corporate-finance scholars have embraced a methodological approach that looks for “shocks” to evaluate a policy change. These “shocks” are often new laws or court rulings that change some existing rule on a certain day. The researcher then makes predictions about how the world will change with the new rule and examines evidence… Continue reading Abe Cable on the Effects of Trados in Silicon Valley
A decade of reform efforts has given financial regulators an array of tools to stave off the next crisis—living wills, orderly liquidation authority, and so on. These new tools, in turn, have produced a large and lively literature in legal and economic scholarship. Yet a fundamental question—exactly when regulators should deploy the new regulatory apparatus—has… Continue reading John Crawford on the Timing of Financial Regulation
We’re closing in on a decade since the height of the financial crisis, so perhaps it’s not surprising that reflection on financial regulation is in the air. Much of the focus has been on two divergent ideas. On the one hand, President Trump evidenced a deregulatory approach when he famously announced he would “do a… Continue reading John Crawford on Post-Recession Financial Reform
A “unicorn” in Silicon Valley lingo is a private company that has achieved a valuation of $1 billion or more. During the first dot-com craze in the late 1990s, such creatures were truly imaginary, as companies rushed to go public in the relatively early stages of growth. More recently, unicorns have become startlingly common, as… Continue reading Abe Cable on Stock Options at Unicorn Start-Ups