This article studies the corporate investment decision problem faced by a manager whose compensation is pegged to the stock price at some future time (rewarding time)in a market that the stock price may deviate from its fundamental value. It provides an analytical solution on the optimal...

This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to...