Kooltex buyout: Valuing the management team incentive package (A)

The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. U...

Kevin Warsh focused his first conference as Federal Reserve chair on June 17 on a familiar problem: fast-rising prices fuelled by the Iran war. Yet another challenge facing central banks goes beyond the immediate inflation shock. As investors plac...

Every executive eventually hits a moment of truth. A new project, a bold expansion, a promising acquisition, and suddenly the hard questions are right in front of you: Will this venture be profitable? Will it generate cash flow? How much capital w...

Switzerland has reached an uncomfortable conclusion: that UBS has become too large for the state to comfortably stand behind. The government’s plan to force the bank to hold roughly $20 billion more in capital is an attempt to close that gap, even...

Investor climate initiatives are facing unprecedented scrutiny at a time when the policy landscape is shifting rapidly, and the effectiveness of current investor actions is being actively questioned. Against this backdrop, this project reexamines ...

For much of the past decade, investor climate action has rested on a simple idea : if investors demand the right disclosures, set the right targets, allocate capital differently and engage hard enough with companies, markets can deliver economy-wi...