By using the data of Chinese firms with the state ownership structure, we examine whether institutional investors can help reduce the required return of equity for state-owned enterprises (SOEs) and non-SOEs. We find that an increase in the shareholdings of institutions especially independent...

This paper investigates the predictive ability of international volatility risk for the daily aggregate Chinese stock market returns. We employ the innovations in implied volatility indices of seven major international markets as our international volatility risk proxies. We find that...