The paper investigates the relationship between bank credit lines and firms' overinvestment for Chinese listed companies from 2001 to 2008. We find significant impacts of bank credit lines on firm overinvestment activities. Further, we find that overinvestment is mainly made by State-owned...

In the Chinese stock markets, foreign class B shares trade at an average discount of about 60 percent to the prices at which domestic A shares trade. We develop a simple model, incorporating both asymmetric information and market segmentation, to explain the relative pricing of A shares and B...

We investigate, both theoretically and empirically, the relation between the adverse selection and fixed costs of trading and the number of informed traders in a financial asset. As a proxy for informed traders, we use dual traders---i.e., futures floor traders who execute trades both for their...