We study the effect of bank loans on Chinese publicly listed firms' investment decisions based on the underinvestment and overinvestment theories of leverage. Evidence from China is of particular importance because China is the world's largest emerging and transitional economy. At first we show...

Research into group decision-making suggests that any optimal managerial compensation incentive design should incorporate synergistic interrelationships among top executives within a firm. This paper investigates whether the equity incentive structure of a management team affects firm-level...

We show that the pre-FOMC announcement drift is more pronounced among lottery-like stocks and does not reverse in the days following the announcement. The pre-FOMC demand for lottery-like stocks is more prominent among institutional investors than retail investors. The associated pre-FOMC drift...

We investigate whether generalist chief executive officers (CEOs) who gain transferable skills across firms and industries have less incentive to hoard bad news. To address endogeneity concerns stemming from firm-CEO matching, we deploy a difference-in-differences method utilizing exogenous CEO...

We examine whether the equity incentive heterogeneity of the executive team engenders a positive externality by curtailing stock price crash risk. Supporting this prediction, we find a negative relation between the equity incentive heterogeneity of the executive team and stock price crash risk....

Using a sample of Chinese listed firms between 2001 and 2019, we find that accounting conservatism enhances the sensitivity of investment to stock prices. We also find an information channel that drives the relation between accounting conservatism and investment-price sensitivity. Our finding...

This paper studies the relation between supplier-base concentration and corporate cash policy, using unique data on supplier information disclosed by Chinese listed firms between 2007 and 2020. We find that customer firms with more concentrated supplier bases tend to hold higher levels of cash...