We use the occasion of a change in tax policy that raised the tax rate for many of the listed companies in China to examine tax-induced earnings management (TEM) from the perspective of political connections. We find that when the tax rate increased, only those affected firms with politically...

This paper examines the effects of the recent financial crisis on corporate cash holdings and saving propensities. We find that on average, firms reduce their cash holdings in the first year of the crisis when the supply of external finance is tightened, and increase their holdings in cash from...

We examine the effect of corporate ownership structure on the market value of excess cash in Chinese listed firms. We find that state ownership has a positive effect, as the market value of excess cash is greater in state-owned firms than in privately controlled firms. Furthermore, we show that...

This article studies the corporate investment decision problem faced by a manager whose compensation is pegged to the stock price at some future time (rewarding time)in a market that the stock price may deviate from its fundamental value. It provides an analytical solution on the optimal...

This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to...

This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to...

This comment restudies Black¡¯s (1990) [Black F., 1990. Mean reversion and consumption smoothing. Review of Financial Studies 3,107-114.] paper and shows that the conclusions in Black (1990) are not right.

The strengthening effects of Cr on Cu-Cr alloy are severely limited due to the relatively low solid solubility of Cr (0.7 wt.%). Also, the mechanical performance deteriorates severely at high temperature due to the Cr precipitates coarsening rapidly or dissolving in Cu matrix again. Here, the...

This open access book explores new research directions in social inequality and urban segregation. With the goal of fostering an ongoing dialogue between scholars in Europe and China, it brings together an impressive team of international researchers to shed light on the entwined processes of...

Abstract Often the research interest in causal inference is on the regression causal effect, which is the mean difference in the potential outcomes conditional on the covariates. In this paper, we use sufficient dimension reduction to estimate a lower dimensional linear combination of the...