White ABSTRACT In this paper

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A companies we find that corporations that voluntarily adopted sustainability policies by termed as High Sustainability companies exhibit by distinct organizational processes compared to a matched sample of companies that adopted almost none of these policies termed as Low Sustainability companies.

The boards of directors of High Sustainability companies are more likely to be formally responsible for sustainability and top executive compensation incentives are more likely to be a function of sustainability metrics. High Sustainability companies are more likely to have established processes for stakeholder Chinese Overseas America Number Data engagement to be more long term oriented and to exhibit higher measurement and disclosure of nonfinancial information. Finally High Sustainability companies significantly outperform their counterparts over the long term both in terms of stock market and accounting performance. Publisher s link http papers.ssrn sol papers.cfm abstract id AUGUST JOURNAL OF FINANCIAL INTERMEDIATION Good Cop Bad Cop Complementarities Between Debt and Equity in Disciplining Management.





By Guembel Alexander and Lucy we examine how the quantity of information generated about firm prospects can be improved by splitting a firm s cash flow into a safe claim debt and a risky claim equity . The former being relatively insensitive to upside risk provides a commitment to shut down the firm in the absence of good news. This commitment provides the latter a greater incentive to collect information than a monitor holding the aggregate claim would have. Thus debt and equity are shown to be complementary instruments in firm finance. We show that stock markets can play a useful role in transmitting information from equity to debt holders.