Responsible Business
My work on blockholders (large shareholders) studies how blockholders play a critical role in corporate governance due to their large stakes – alleviating concerns on the “separation of ownership and control” and the “ownerless corporation”. In particular, I show how blockholders can exert governance not only through “voice” (engaging with companies) but also “exit” (voting with their feet). Contrary to conventional wisdom, exit is a governance mechanism in itself, not the antithesis of governance, and short-term exit can encourage long-term behavior by firms.
Theory
Responsible investment to reduce externalities (Edmans, Levit, Schneemeier 2022)
Use of debt to induce blockholder monitoring (Edmans JFE 2011)
Empirics
Link between employee well-being and firm value
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- In the US: finance version (Edmans JFE 2011), management version (Edmans AMP 2012)
- Globally (Edmans, Pu, Zhang, Li MS forthcoming)
Diversity, equity, and inclusion (Edmans, Flammer, Glossner 2023)
Essays
The End of ESG (Edmans FM 2023)
Applying Economics – Not Gut Feel – To ESG (Edmans FAJ forthcoming)