In China¡¯s transitional economy, government regulation could be a substitute for the lack of law mechanism and regulator¡¯s power could spill over into other areas not regulated. Then, theoretically it could construct implicit contracts. For example, China Securities Regulatory Commission...

Most existing energy efficiency indices are computed without taking into account undesirable outputs such as CO2 and SO2 emissions. This paper computes the ecological total-factor energy efficiency (ETFEE) of 30 regions in China for the period 2005–2009 through the slack-based model (SBM) with...

Using a sample of bank loan announcements in Japan, we examine whether or not banks have incentives to engage in suboptimal lending that results in wealth transfer from the banks to the borrowing firms. We find that abnormal returns for borrowing firms are significantly positive, but those for...

We develop and test a model that investigates how controlling shareholders' expropriation incentives affect firm values during crisis and subsequent recovery periods. Consistent with the prediction of our model, we find that, during the 1997 Asian financial crisis, Asian firms with weaker...

We examine post-takeover restructuring activity and the sources of gains in large U.S. targets of foreign acquirers. We find that layoffs and sell-offs are less important in justifying the target premium in foreign takeovers than in domestic takeovers. In contrast, U.S. targets in foreign...

This paper considers the problem of how an investor can optimally motivate an investment advisor to exert costly effort to gather valuable investment information. We show that compensation schemes that are increasing in the investment payoffs may fail to optimally motivate the advisor. We then...

The stochastic pooling problem is a type of stochastic mixed-integer bilinear program arising in the integrated design and operation of various important industrial networks, such as gasoline blending, natural gas production and transportation, water treatment, etc. This paper presents a...

This paper focuses on deriving optimal refill rules for a multi-purpose reservoir, and aims to maximize utilization benefits under the condition of flood control safety. The entire flood season is divided into multiple sub-seasons (i.e. pre-flood season, main-flood season and post-flood season)....

This paper presents a numerical stability analysis of a multi-phase car-following model under mild to severe disturbances. The results show that local stability was always conformed. An asymptotically unstable region was found for traffic in congested states. One of the previously calibrated...