University of Pennsylvania
Philadelphia, PA 19104
Institutional Affiliation: Wharton School/University of Pennsylvania
NBER Working Papers and Publications
|August 2019||Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review|
with Hans B. Christensen, Christian Leuz: w26169
This study provides an economic analysis of the determinants and consequences of corporate social responsibility (CSR) and sustainability reporting. To frame our analysis, we consider a widespread mandatory adoption of CSR reporting standards in the United States. The study focuses on the economic effects of standards for disclosure and reporting, not on the effects of CSR activities and policies themselves. It draws on an extensive review of the relevant academic (CSR and non-CSR) literatures in accounting, economics, finance, and management. Based on a discussion of the fundamental economic forces at play and the key features and determinants of (voluntary) CSR reporting, we derive and evaluate possible economic consequences, including capital-market effects for select stakeholders as we...
|November 2017||On the Economics of Audit Partner Tenure and Rotation: Evidence from PCAOB Data|
with Brandon Gipper, Christian Leuz: w24018
This paper provides the first partner tenure and rotation analysis for a large cross-section of U.S. publicly listed firms over an extended period. We analyze the effects on audit quality as well as economic tradeoffs related to partner tenure and rotation with respect to audit hours and fees. On average, we find no evidence for audit quality declines over the tenure cycle and little support for fresh-look benefits after rotations. Nevertheless, partner rotations have significant economic consequences. We find increases in audit fees and decreases in audit hours over the tenure cycle, which differ by partner experience, client size, and competitiveness of the local audit market. More generally, our findings are consistent with efforts by the audit firms to minimize disruptions and audit fa...
|July 2017||Cross-Country Evidence on the Relation between Capital Gains Taxes, Risk and Expected Returns|
with Stephanie Sikes, Clare Wang
in Personal Income Taxation and Household Behavior (TAPES), Roger Gordon and Christian Keuschnigg, organizers
|January 2011||Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement|
with Hans B. Christensen, Christian Leuz: w16737
We examine the capital-market effects of changes in securities regulation in the European Union (EU) aimed at reducing market abuse and increasing transparency. To estimate causal effects for the population of EU firms, we exploit that for plausibly exogenous reasons, like national legislative procedures, EU countries adopted these directives at different times. We find significant increases in market liquidity, but the effects are stronger in countries with stricter implementation and traditionally more stringent securities regulation. The findings suggest that countries with initially weaker regulation do not catch up with stronger countries, and that countries diverge more upon harmonizing regulation.
Published: Hans B. Christensen & Luzi Hail & Christian Leuz, 2016. "Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement," Review of Financial Studies, vol 29(11), pages 2885-2924. citation courtesy of