China's high household savings rate has attracted great academic interest but remains a puzzle. Potential explanations include demographic, policy, and financial causes. Yet a lack of reliable microlevel data on household finances makes it difficult to assess the relative importance of each...

We examine how information risk and transaction costs influence the initial and subsequent market reaction to earnings news. We find that the initial market reaction is higher per unit of earnings surprise for higher information risk firms (information content effect). Furthermore, it is...

China’s high household savings rate has attracted great academic interest but remains a puzzle. Potential explanations include demographic, policy, and financial causes. Yet a lack of reliable microlevel data on household finances makes it difficult to assess the relative importance of each...

This paper reveals an informal eldercare arrangement in China by focusing on how the value of housing owned by aging parents affects the adult children’s caregiving behavior. Using three waves of comprehensive national survey data from 2011 to 2015 around China, we find that when the potential...

A government’s state capacity strength has a bearing on not only how much revenue it can extract but also on how it extracts revenues. Based on China’s local economic development experience since the 1990s, we draw on two unique household survey datasets to measure county-level local state...

Governments are important financiers of private sector innovation. While these public funds can ease capital constraints and information asymmetries, they can also introduce political distortions. We empirically explore these issues for China, where a quarter of firms' R&D expenditures come from...