Purpose – First purpose of this study is to find out whether the negative relationship between board size and future firm risk persists in China while contemplating all sorts of endogeneity. Secondly, we investigate the role of large shareholders in influencing the managerial decisions of...

The heavy-tailed distribution of firm sizes first discovered by Zipf (1949) is one of the best established empirical facts in economics. We show that it has strong implications for asset pricing. Due to the concentration of the market portfolio when the distribution of the capitalization of...