In this paper, I examine the effects of trading rights and ownership structure on earnings informativeness around China's split share structure reform. The reform removed trading restrictions on non-tradable shares. I find that earnings informativeness drops after the reform, especially for...

This paper studies how managerial compensation is shaped by the risk preference of shareholders. Firms with a large ownership held by "dual holders'' -- institutional investors that simultaneously hold equity and bonds of the company -- choose a less risk-inducing compensation structure....