Using Chinese comment letters data, we investigate the impact of the disclosure of comment letters on the cost of debt financing. Empirical results show that when the comment letters are publicly disclosed, creditors charge borrowers significantly higher cost of debt financing. Furthermore, when...

The Property Rights Theory states that clearly defined ownership is the premise of efficiency, while ambiguous property rights result in great externalities. We use the establishment of local SASACs as a quasi-natural experiment to investigate how unifying the supervision rights and...