Lowball guidance is the practice of firm managers issuing overly cautious guidance that is later exceeded by a large margin upon earnings announcement. In this study, we examine this practice at the episode level, where a firm engages in it over multiple consecutive quarters. Using a control...

Motivated by the understudied role of CEO psychological characteristics in corporate risk-taking, our study investigates whether CEO hometown identity mitigates or encourages firms' risk-taking. Results from a sample of listed Chinese firms between 2008 and 2020 reveal that CEO hometown identity...

As being unbanked is one of the motivations for using cryptocurrency, this study analyzes the financial inclusion of unbanked individuals that results from the use of peer-to-peer cryptocurrency transactions. By extending the Kiyotaki-Wright model, we construct a dual- currency economy in which...

In the wake of the financial crisis, policymakers expressed the concern that banks’ use of the incurred loss model exacerbates their lending procyclicality by delaying the recognition of loan losses to recessions. Responding to this concern, the FASB issued Accounting Standards Update 2016-13,...

Challenging the homo economicus assumption underlying the traditional agency theory, our study explores the impact of CEO hometown identity on corporate misconduct from the perspective of social identity theory. The results based on a sample of listed Chinese firms from 2008 to 2020 show that...

Human activities are an integral part of the ecological system. Yet the current mainstream economic theory is largely detached from the physical resources that the human society builds on. In this work, we look at the human society from the fundamental thermodynamic laws and the chemical...

Many people have recognized the fundamental flaws in the mainstream economic theory. At the same time, most people feel that it is unlikely to develop an economic theory that is both relevant and analytical tractable. It is often thought that social problems are too complex to be described by a...

This paper attempts to explore key determinants of competitiveness in the textile and apparel industries, with special reference to Chinese Mainland. The authors conduct a survey that is designed to use productivity, supply-side and demand-side determinants to measure enterprises'...

Tremendous effort has been spent on the construction of reliable efficient frontiers. However, mean-variance efficient portfolios constructed using sample means and covariance often perform poorly out of sample. We prove that, the capital market line is the efficient frontier for the risky...