This paper aims to investigate whether Chinese internal control regulation improves reporting quality. After the enactment of US Sarbanes-Oxley Act (SOX), China introduced a quasi-SOX practice (C-SOX). C-SOX stipulates that firms should disclose both management and audit reports on internal...

As air quality has deteriorated, corporate environmental information disclosure (EID) has received extensive attention. We examine how air quality and institutional investors affect corporate EID under China's New Environmental Protection Law (NEPL). We show that air quality's effect on EID...

Of many psychological biases, overconfidence has been described as one of the most powerful. Few studies have focused on collective overconfidence in team decision-making by boards of directors since boards are typically "black boxes". Based on the shared cognition and trickle-down effect, we...

This paper investigates the effect of house money on the risk-taking behavior of individual investors. When gains are more substantial, individuals tend to take greater risk. The house money effect seems to decline over time, because the propensity for risk taking following gains is diminished...

We set out in this study to analyze the expiration effects of index futures on the cash market in Taiwan, and find that both volatility and trading volume are higher on the final settlement days as compared to normal trading days. We also calculate the volume of open interest for final...

We analyze 987 ex-dividend events in Taiwan stock market between January 1992 and December 2006, and find that differential taxes really matter for the share prices and investors behaviors around the ex-dividend day. Ex-day price drop ratio increases with the investors' average preference for...

Individual investors that are also natural persons play an important role in the stock market as providers of liquidity, and it is their investment performance that directly influences their rate of survival in the market. As to whether the outcome of their operating performance is due to their...

Using a unique data set of complete trade records, we find that large individual investors are successful at picking stocks. Large individual investors' correlated trades not only can move synchronous stock prices but also can positively predict future returns. More importantly, large individual...

The Taiwan Stock Exchange (TSEC) is an electronic order-driven market without designated market makers. By turnover rate the TSEC is the most liquid market in the world. This paper is about the liquidity providers on the TSEC. Our analysis sheds light on the design of trading mechanism of an...

Using data from 74 countries between the years of 1960 to 2008, we performed panel regressions and logit models on political settings and the economic situation to identify which factors influence deposit insurance coverage and the probability of changes in coverage. Results reveal that...