Purpose: This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing...

This paper characterizes conditions under which centralized and decentralized markets (CM/DM) co-exist for asset trading. The asset payoff and trading motive are seller's private information. CM is immune to search frictions, but suffers from adverse selection. DM with bilateral trading may...

China is now facing the challenges of high leverage. Our study has examined the role of firms’ rising debt in explaining the decrease in labor share in recent years. We developed a model to show that firms may strategically use debt to increase their bargaining power, resulting in lower labor...

We provide a theory to investigate the implications of time-varying bailout policy for rational bubbles in an infinite-horizon production economy. In particular, we ask two questions. First, should the government bail out asset bubbles? Second, if yes, how? In our model, entrepreneurs face...

The traditional literature treat wage dispersion and firm dynamics, which are closely connected to each other, in isolation. This paper delivers a unified treatment to wage dispersion and firm-size distribution by developing a real-option-theoretic approach. The model is tractable with analytic...

Emotion plays a significant role in both institutional and individual investors' decision making process. However, there is a lack of empirical evidence available that addresses how investors' emotions affect commodity market returns. This study examines the short-term predictive power of...

In this research authors show that institutional investors' skill matters the most during high sentiment periods when market signals are noisy. The results reveal that fund managers with the highest (lowest) skill add (lose) $7.71 ($5.64) million of value during high sentiment periods, compared...

The supply and demand of credit are not always well aligned and matched, as is reflected in the countercyclical excess reserve-to-deposit ratio and interest spread between the lending rate and the deposit rate. We develop a search-based theory of credit allocations to explain the cyclical...

Using household-level survey and housing transaction data, we detect the flight to safety vis-a-vis housing in China: Great economic uncertainty causes the prices of housing assets to soar, especially those of good quality. To stabilize housing prices, China has imposed purchase restrictions on...