In this paper, we analyze the return-volatility relation for the New Third Board market in China. Various properties for cross sectional (daily and weekly) returns and volatility are obtained and interpreted. The cross sectional return-volatility relations are analyzed at weekly frequency and...

This research reveals the inherent dynamics between the amount of foreign direct investment (FDI) inflow in the host country and its political relationships with other countries. We demonstrate in a two-stage sequential game model that there exists an inverted U-shape relationship between FDI...

We show how specific features of the microstructure information from VPIN and DPIN can volatile the futures market and can link with the price discover and investor sentiment. We develop an investor (institutional, noise, and both) sentiment index for the Shanghai Stock Exchange 50 (SSE 50)...

This paper proposes a theoretical framework to illustrate the incentives of the exponential growth of the asset size of China's large state-owned enterprises in the past decades. We come up with the views that there are 3 types of incentives that lead to the expansion of asset size of large SOEs...

Based on China-listed firms, we investigate the relationship between air pollution and dividend payout. We document that air pollution promotes firms to pay higher dividends, and address the endogeneity by regression discontinuity design (RDD) and instrument variable (IV) regression....

Bitcoin has gotten significant interest throughout the world, in not just investors and the financial community, but also among the general public. Over the past few years, the price of Bitcoin has risen and fallen dramatically. Because of the dramatic price increases, many articles in the...

This paper constructs a two-stage sequential game model to investigate the spillover effect of inward FDI on the efficiency improvement of domestic firms across different ownership types in host countries. Our model shows that given the optimal spillover policy made by foreign firms, the impact...

This paper constructs a simple model to reveal the trade-off between decentralized and centralized governance structure of large state-owned enterprises (SOEs) in China. Our model shows that the delegation of decision making authority to SOE managers would enhance their initiative in terms of...

This study examines whether poor air quality affects corporate debt cost. By employing a regression discontinuity design (RDD) based on the discontinuity of air pollution caused by the Qinling-Huaihe line in China, we found that poor air quality significantly raises the debt cost of firms after....

In 2012, China implemented a green credit policy (GCP) that restricts bank credits to heavily polluting firms. This paper examines how the GCP affects the cash holdings of Chinese listed firms. Using a difference-in-differences research design, we find that GCP-affected firms increase their cash...