We examine the role of firm-level political risk in the capital structure dynamics for the U.S. listed firms from 2002 to 2017. We find that firm-level political risk facilitates firms' speed of adjustment towards its target leverage, and such a positive effect holds for categorical political...

Although liquidity has received wide attention in asset pricing literature over the past decades, how stock liquidity is priced in emerging markets remains unclear. We find that liquidity plays an important role in explaining the cross-section and time-series variation in expected returns by...

We examine the association between customer concentration and capital structure adjustment speed using a sample of listed firms in the U.S from 1977 to 2020. We find that the customer-concentrated firms have a lower speed of leverage adjustment. The decomposition of customer types identifies...

This study investigates the association between stock liquidity and the H-share discount using a sample of Chinese cross-listed stocks in A- and H-shares markets. We examine the liquidity hypothesis by employing depth and trading activity variables. Our results suggest that stocks with a higher...

We examine how industry returns react to various oil shocks developed in Baumeister and Hamilton (2019) and find that oil supply shocks matter as much, if not more, as oil demand and economic activity shocks in driving industry returns. A long-short portfolio that buys (sells) industries...

This study examines the role of the anti-corruption campaign in capital structure decisions for Chinese listed firms using investigation of senior officials from 2007 to 2019. We find a positive effect of the anti-corruption campaign on the firm’s leverage adjustment speed, consistent with the...

We show that the implied cost of capital (ICC) and factor model-based proxies (FMPs) of cost of equity have negative (positive) association with corporate investment and external financing. ICCs show negative association with corporate investment and external financing by capturing the discount...

We evaluate how work experience in mutual funds affects manager skills after they switch to private funds. Using a proprietary Chinese private fund database from 2012 to 2016, we document that, despite their work experience in mutual funds, switched private fund managers significantly...

We evaluate the association between social networks and household income using a panel dataset of representative households in China constructed from the 2011 and 2013 waves of the China Household Financial Survey (CHFS). The results show that social networks are positively associated with the...

We evaluate the economic consequences of the performance commitment clauses for acquisition deals from 2007 to 2017 in China. We find that acquisition aggressiveness is positively associated with failure of delivering performance commitment. Such effect is alleviated in cash-paid deals but is...