Consistent with predictions of agency theory, we find direct evidence that executive stock option grants have value implications for firm performance. This inference is drawn from evaluation of various motivations for the use of such grants in executive compensation: value enhancement, risk...

Purpose: The purpose of this paper is to reveal the economic impact of policy reversals related to market liberalization reforms in China. Design/methodology/approach: To perform the analysis, the authors hand-collect 59 financial market liberalization policy reversals from 1999 to 2017. These...

Purpose – The purpose of this paper is to examine how policy instability is priced in interest rates. Policy instability refers to the likelihood that the current policy will be changed in the future in the absence of political power shifts. Design/methodology/approach – Chinese...

With increasing globalization, to what extent do stock market returns reflect global or domestic risk factors? We find a significant relationship between stock market returns and the global market risk factor and macroeconomic factors respectively. In particular, global factors offer four times...