Public listing is a key reform measure for large state-owned enterprises (SOEs) in China. We find evidence that public listing lowers state ownership significantly, lessens firms' reliance on debt finance, and allows firms to increase capital expenditure, at least temporarily. We also find that...

This paper develops a self-enforcing contract model to show that better economic fundamentals can help when there is weak rule of law -- but with order -- to attract foreign direct investment, whereas lowering taxes does not necessarily help. Using a cross-region Chinese dataset, the analysis...

This article investigates longitudinal changes in the relative performance of business groups utilizing data on listed companies in China over a 10-year period (1994--2003). Using a measure of firm value in the stock market and panel regression methods, this article finds the initially superior...

In this paper, we show that although ex ante equityholders would like to adopt an optimal displacement and operating policy, they may not have incentives to implement such a policy ex post when the manager acquires firmspecific human capital and becomes indispensable to the firm¡¯s continued...

Three years after the worst economic crisis since the Great Depression, economic growth has resurfaced across the world, but with significant variation. This timely book illustrates that although mature economies (the EU in particular) are still confronting sluggish economic performance,...

Option valuation models are based on an arbitrage strategy--hedging the option against the underlying asset and rebalancing continuously until expiration--that is only possible in a frictionless market. This paper simulates the impact of market imperfections and other problems with the...