We examine the effects of corporate lawsuits in China and find that litigation announcements depress the stock prices of both defendant and plaintiff firms. Financially distressed defendants suffer lower stock returns. We find that politically connected defendants are favored in the judicial...

This study examines the relations between leverage and investment in China's listed firms, where corporate debt is principally provided by state-owned banks. We obtain three major findings. First, there is a negative relation between leverage and investment. Second, the negative relation between...

About twenty years ago, China set about reforming its moribund economy by introducing certain elements of free market capitalist economics. One reform was the partial privatization of many State Owned Enterprizes (SOEs) and listing the shares in them on the stock exchanges of Shanghai and...