Innovation and competition are two major pillars in the IT industry. In this paper, we examine the causal relationship between product market competitiveness and the innovations in the IT industry. We measure the innovations from both the quantity (number of patents) and the quality (number of...

In this paper, we first propose a two-level nonlinear conservative difference scheme for solving the generalized Rosenau-Kawahara equation. The second-order convergence in $L_\infty$-norm of the scheme is proved by an induction argument and discrete energy method. And the the prior estimate in...

This paper studies how managerial compensation is shaped by the risk preference of shareholders. Firms with a large ownership held by "dual holders'' -- institutional investors that simultaneously hold equity and bonds of the company -- choose a less risk-inducing compensation structure....

In this paper, we examine how firms can leverage reference-group effects (RGEs) in sequential introduction of upgraded products. RGEs arise when consumers engage in social comparisons: leaders desire to distinguish themselves from followers and followers desire to mimic leaders. We find that...

Using the passage of the Federal Trademark Dilution Act (FTDA) as an exogenous shock to trademark protection, we find that stronger trademark protection induces firms to increase their CEO risk-taking incentives as measured by CEO portfolio vega. The effect is greater for firms facing more...

By exploiting the local randomness in close-call labor elections, this paper finds a positive impact of labor unionization on firms’ real earnings management, suggesting the pressure effect of increased labor power. In a local regression discontinuity (RD) analysis, firms that narrowly pass...

Atmospheric electric field has been observed in the town Binchuan (25°50’N, 100°34’E, 1438.7m asl) Yunnan, China from June 2017 to December 2020. The mean diurnal variation curve of the atmospheric electric field under fair-weather in Binchuan (will be described as Curve) shows little...

This paper investigates how fintech advancement influences marketing strategies like corporate advertising expenditures. We find that fintech development significantly promotes corporate advertising by mitigating the negative impact of financial constraints. We also find that the effect is more...

This study examines how minimum wage hikes affect firms’ industrial pollution. Using the establishment-level pollutant emission data on Chinese industrial firms and exploring the minimum wage policy discontinuities at county borders, we find that minimum wage hikes induce firms to pollute more...