The Brattle Exchange

In this episode of The Brattle Exchange, Johannes Stroebel, the David S. Loeb Professor of Finance at NYU Stern School of Business and Director of the Climate Finance Initiative, joins Brattle Senior Associate Bennet Berger to delve into the intersections of real estate economics, discount rates, and climate risk.

Bennet and Johannes cover several topics within Johannes’ extensive and innovative research background, from analyzing asymmetric information in the housing market – which he discussed in a 2016 Brattle Prize-winning paper – to his work on long-term discount rates and how they impact cost-benefit analyses involving investments in climate risk adaptation. The pair also discuss some of Johannes’ recent work on the extent to which house prices are affected by climate risk. Johannes shares his findings that the price discount for housing that is exposed to climate risk may be larger during periods when there is increased attention on climate risk.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

In this episode of The Brattle Exchange, Principal Dr. Shastri Sandy welcomes Dr. Luigi Zingales, an expert in corporate governance, white-collar fraud, and financial economics. Luigi is a Professor of Entrepreneurship and Economics at the University of Chicago’s Booth School of Business; he was Shastri’s dissertation chair while Shastri was completing his PhD and MBA at Booth. Their conversation spans diverse topics, including Luigi’s groundbreaking research in corporate governance and fraud, the complexities of capital allocation, and the alignment of corporate social responsibility and economic activities.

Luigi explores the tension between shareholder value maximization and welfare maximization – challenging conventional norms in corporate governance – and discusses his role hosting the University of Chicago podcast Capitalisn’t, where he seeks to simplify complex economic topics to educate a broader audience. Luigi also discusses his current research interest in improving corporate governance, and reducing company overreach through representative shareholder assemblies making informed stock voting decisions.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

Dr. Bin Zhou, Brattle Principal, and Clifford Holderness, Professor Emeritus at Boston College Carroll School of Management, engage in a dynamic discussion on corporate governance and ownership concentration in publicly traded companies.

Drawing upon Cliff's extensive background in corporate finance, the episode delves into his innovative research – which has often challenged conventional thinking – including on the dynamics of large-block ownership and large-block trading in publicly traded companies. Bin and Cliff also discuss private benefits of control, potential conflicts between large and minority shareholders, and Cliff’s recent research on shareholder voting on potentially controversial company issues.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

John Graham, Professor of Finance at Duke University’s Fuqua School of Business, joins Margaret McKeehan, Brattle Senior Associate, to delve into the intersection of academic theory and real-world practice in corporate finance.

John and Margaret explore some key findings from John’s research over the years, including his novel calculation of firm-specific tax rates that has enabled more precise research across corporate finance topics. They also discuss some of the results of John’s research on the impact of tax policies on corporate finance decisions made by firms.

Also covered in the episode: the origins and evolution of the Duke/Federal Reserve CFO Survey, which John has directed for nearly 30 years, to bridge the gap between academia and the business world; recent survey insights on AI and automation in corporate planning; and the need to increase the alignment of academic research with practical finance.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

Dr. Randall Kroszner, Professor of Economics at the University of Chicago's Booth School of Business, joins Brattle Principal Jamie Read to discuss the past, present, and future of financial regulation and innovation.

Randy details his extensive experience, including serving as a member of the Federal Reserve Board of Governors during the 2007–2008 global financial crisis, his time as a member of the President’s Council of Economic Advisers, and his current role with the Bank of England's Financial Policy Committee. Jamie and Randy cover key topics in regulation, including the increase in non-bank financial institutions and the potential challenges stemming from the rise of crypto assets.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

Dr. Ilya Strebulaev, the David S. Lobel Professor of Private Equity and a Professor of Finance at Stanford University’s Graduate School of Business, joins Brattle Principal Sujay Dave to discuss his research and extensive experience in corporate finance, private equity, and venture capital.

In this episode, Ilya discusses how he developed a framework for capital structure decisions that incorporates dynamic decision-making and thus more accurately reflects real-world results. He explains how his early corporate finance work – together with his position at Stanford GSB, located at the heart of Silicon Valley – led to his founding of the Stanford GSB Venture Capital Initiative. At the Initiative, Ilya and his team have compiled and analyzed a one-of-a-kind database with information from hundreds of venture capital firms, providing key information and insights on an industry that is typically very private. In the episode, Ilya highlights the accomplishments of the Initiative under his leadership over the past decade.

Ilya also previews his recently released book, “The Venture Mindset,” which summarizes decision-making principles derived from his and coauthor Alex Dang’s experience with the venture capital space. The book also includes practical applications, making it widely applicable in settings beyond venture capital.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

In this episode, Dr. Shastri Sandy, Brattle Principal, interviews his former professor, Douglas Diamond, Professor of Finance at The University of Chicago Booth School of Business and one of the world’s leading experts on banking and financial crises. Doug was awarded the 2022 Nobel Memorial Prize in Economic Sciences, along with Ben Bernanke and Philip Dybvig, for his work in the field that laid the foundations of modern bank regulation. Doug and Shastri discuss how academic theory connects with real-world implications in the world of banking regulation.

Doug shares his early influences while at Brown University and Yale University, including Jerome Stein, Milton Friedman, Anna Schwartz, and Steve Ross. He discusses his pioneering work with Raghu Rajan in developing a trade-off theory of bank capital and examining the role of bank capital requirements. He highlights his theories and dynamic models developed with Zhiguo He on how debt maturity impacts investment decisions.

He provides insights into the evolving landscape of bank regulation and supervision, including in the context of the recent U.S. banking failures that included Silicon Valley Bank. Additionally, Doug shares about his current research interest in examining the impact of financial development in developing economies and how it contrasts with the impact in developed economies.

Learn more about The Brattle Group Prize in Corporate Finance and the prize-winning papers here.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

Dr. Philip Drummond, Brattle Associate, and hosts Dr. Mingze (Adrian) Gao, Dr. Buhui Qiu, and Dr. Eliza Wu, delve into the intricate world of syndicated loans, with a spotlight on the research encapsulated in their FIRN award-winning paper.

Syndicated loans involve a team of banks pooling resources to finance a single borrower, managing risk and providing substantial capital. Mingze (Adrian), a lecturer at Macquarie University, teaches banking and financial intermediation, while Buhui, a professor at The University of Sydney Business School, specializes in corporate policies and capital markets. Eliza, also from The University of Sydney Business School, focuses on bank lending and regulatory reforms.

The hosts discuss the mechanics of loan syndication, the risks associated with concentrated loan syndicates, and their empirical findings. Their research reveals that banks involved in concentrated syndicates face higher future risks, litigation, and lower profitability. The episode also explores regulatory implications and the essential balance between risk and diversified lending practices.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

In this podcast episode, Alison Forman, Principal and Certified Public Accountant from The Brattle Group, and Adam Karageorge, Brattle Associate, delve into recent SEC and PCAOB enforcement actions against auditors. Adam and Alison bring their extensive experience in handling matters involving auditor liability to provide a nuanced analysis of the evolving enforcement landscape.

The episode covers the significant uptick in PCAOB enforcement actions, especially against non-U.S. auditing firms, the impact of recent leadership changes at the SEC and PCAOB, and the implications of high-profile legal decisions for future regulatory actions.  The discussion provides listeners with a comprehensive look at the strategies employed by the regulators, exploring first of its kind enforcement, the shift towards more rigorous penalties, and an increased focus on accounting firms’ “tone at the top.”

Drawing from their recent research, Alison and Adam also compare enforcement activity in the first four months of 2024 to five predictions outlined in their report, 2023 Enforcement Activity Involving Auditors.

The link to the report referenced in this episode can be found here.

Note: This podcast reflects enforcement activity through April 30, 2024.  Keep an eye out for The Brattle Group’s upcoming mid-year update report which will discuss the SEC’s May 3, 2024 settlement with BF Borgers and its owner Benjamin F. Borger.  Sanctions included permanent suspensions and combined penalties of $14 million for “deliberate and systemic failures” to comply with PCAOB standards in audits and reviews included in more than 1,500 SEC filings.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.

In this episode, Dan Harris, Brattle Principal, and Tania Tholot, Brattle Senior Associate, continue their in-depth conversation on the valuation of Russian assets amid economic sanctions.

Building upon their initial discussion, Dan and Tania dive into the complexities of exchange rate risks. They tackle the intricacies of revenue forecasting within the volatile Russian market, spotlighting how currency fluctuations, inflationary pressures, and international economic sanctions interplay to affect asset values.

Throughout the episode, Dan brings his arbitration acumen to the fore, examining the nuanced dynamics of holding structures and the tracing of third-party debts. Tania contributes with her firsthand experience in the valuation of foreign investments in Russia, thoroughly explaining the real-world implications on asset value from an investor’s perspective.

Listeners will gain a deeper understanding of the financial modeling challenges that arise under politically strained conditions, with particular emphasis on commodities and their role in valuation considerations. Join Dan and Tania as they synthesize complex economic theories with real-world examples to illuminate the valuation landscape shaped by geopolitical tensions.

The opinions expressed are those of the speakers and do not necessarily reflect the views of their employer or its clients. This podcast is for general information purposes and is not intended to be and should not be taken as legal advice.