House-purchasing regulations have frequently been adopted by the Chinese government to cool the overheated housing market. Under-reporting of transaction prices has also been widely employed by home buyers to reduce transaction taxes. This paper suggests that by under-reporting to a greater...

This paper studies the cross-border transmission of exchange rate volatility through foreign-invested enterprises (FIEs)’ investments. We find that exchange rate volatility in FIEs’ home countries reduces the investments made by FIEs, which is exacerbated in industries with greater financial...

This paper reveals the role of Yin-and-Yang contracts in evading transaction regulations in China’s housing market. Using micro-observations of Beijing’s housing resales, we find buyers are engaged in “Yin-and-Yang” contracts with higher degree of under-reporting during “the most...

We identify a positive causal effect of patent pledgeability on corporate patenting. Our tests exploit the staggered city-level policy change, which allows firms to use patents as collateral for financing. We find a significant increase in patents and patent citations for firms headquartered in...

This study investigates whether measures of internal audit function (IAF) quality and the IAF's contribution to the financial statement audit affect audit delay. We conduct empirical tests using 292 observations from 216 firms that responded to the Institute of Internal Auditor's Global Auditing...

This paper identifies a novel channel of information transfer in a common shareholder (CS) relationship, in which a shareholder of a fund management company (FMC) also has a substantial stake in a listed company held by the FMC. We find that the holdings of common shareholder–connected FMCs...

We examine the stock market responses to two symbolic events in the outbreak of COVID-19: (1) the lockdown of Hubei province; and (2) the containment of the disease in China and its spread to overseas. Overall, market in China responded negatively (positively) to the first (second) event....

The last two decades have witnessed an unprecedented transfer of Western management education theories and pedagogies into China and most Chinese MBA programs are now being modeled on their Western counterparts. To gauge the impact of this infusion of Western methods and theories on China's...

We examine the role of bilateral political relations on cross-border merger and acquisition (M&A) activities. Based on a large sample of cross-border deals during 1990- 2010, we find strong and robust evidence that bilateral political relations have large and significant causal effects on...