Chinese firms have the right to initiate trading halts. We hypothesize that firms suspend trading to align stock prices with fundamentals. We find 46.5% of halts come after a four-day positive return. While many plausible reasons exist for halts to occur after a price decline, we argue the only...

Regulators typically assume that public financial disclosure is necessary for the efficient functioning of capital markets. Economists recognize that other mechanisms, such as insurance, can mitigate problems that occur when buyers have less information than sellers. We examine whether public...

We find evidence that conflicts of interest are pervasive in the asset management business owned by investment banks. Using data from 1990 to 2008, we compare the alphas of mutual funds, hedge funds, and institutional funds operated by investment banks and non-bank conglomerates. We find that,...