We examine the causal effect of limits to arbitrage on 11 well-known asset pricing anomalies using the pilot program of Regulation SHO, which relaxed short-sale constraints for a quasi-random set of pilot stocks, as a natural experiment. We find that the anomalies became weaker on portfolios...

What determine Chinese party and state cadres’ promotion? Does government performance matter? Using a unique data-set on the promotion and performance of provincial party secretaries and governors (N=303) in China (2000-2004), we apply event history analysis (EHA) methods to empirically...

We study the importance of the decline in interest rates in the discovery of asset pricing anomalies. We investigate 153 discovered anomalies as well as 1,395 potential undiscovered anomalies and find that absent the decline in interest rates, the asset pricing literature would likely entertain...

What drives fiscal transparency? Using a unique dataset we empirically examine the determinants of fiscal transparency of provincial governments in China. We propose an integrated framework to explain the variation in fiscal transparency, in which external demand and pressure, fiscal...

In times when short-term policy rates are at or near the zero lower bound, central banks use unconventional policies such as forward guidance and quantitative easing to influence the slope of the yield curve. In this paper, we analyze the dynamic responses of key U.S. macroeconomic variables to...