Through this research, we find that the asymmetric volatility phenomenon is reversed in the Shanghai Stock Exchange during bull markets. That is, volatility increases more with good news than with bad news. This evidence is inconsistent with the US markets. Further examination of this phenomenon...

This paper examines the impact of ownership structure on firm performance and the default risk of a sample of 59 publicly listed firms in Jordan from 1989 to 2002. The main findings were: (1) ownership structure has significant effects on the accounting measure of performance return on assets...

This study examines the effect of family control on the cash holding policy in China. We find that family firms with excess control rights tend to have high cash holdings that are tunneled rather than being invested or paid to shareholders. We further show that the incentive for controlling...

Using the turnover of politicians in charge of nationwide IPO approval and the resulting “birthplace shock” during the approval process for IPO applicant firms in China, we identify the causal effect of politicians’ hometown favoritism on capital resource allocation. Hometown firms are on...

Most prior research on political patronage investigates its direct effect on power distribution and aggregate economic outputs, but less is known about the outcome of politicians’ patron-client networks at corporate level. This study investigates the causal impact of politicians’...

Using the regulation-induced initial public offering (IPO) suspensions in China as shocks that distract venture capitalists (VCs) from their other portfolio companies because they must pay attention to the suspended firms, we identify the reduced impact of their monitoring role on other...

Leveraging the phased implementation of China's capital control reforms, where select firms gradually become investable to the international market, our difference-in-differences regression analyses reveal that these pilot firms significantly curtail the extent of related party transactions and...