We study how green disclosure shapes portfolios and green investment. Disclosure polarizes shareholders and greenness outcomes: green investors concentrate in green firms and push them to become greener, while brown firms are held by less-green investors and reduce greenness. Because brown firms typically have cheaper opportunities to increase greenness, this sorting reduces aggregate greenness and imposes an externality cost despite improving allocative efficiency. Disclosure alone...

We develop a Diamond-Dybvig-style model in which a non-bank firm issues tokens backed by its future services. Consumers face uncertain liquidity demand and costly ex-post borrowing. Tokens are partially liquid–they provide liquidity for the firm’s service but not other consumption
goods, creating an endogenous liquidity premium. This premium is influenced by the imperfect substitution between tokens and fully liquid claims, leading to a non-monotonic relationship with...