My dissertation consists of three essays on international capital flows. In the first essay, titled "Do small firms benefit more from foreign portfolio investment? Evidence from a Natural Experiment," I test whether an increase in the supply of foreign portfolio capital benefits small firms by...

We study the effects of product market risk on entrepreneurial activities in China, using a favorable change in U.S. trade policy as a plausibly exogenous shock. We do not find an increase in entry rates for domestic firms in exposed industry. However, for upstream suppliers, entry rates...

We study the effects of globalization on entrepreneurial activities in China, using a favorable change in U.S. trade policy as a plausibly exogenous shock. We find that domestic entrepreneurs in exposed industries benefit more from the shock in financially-developed areas and areas dominated by...

Using the establishment of U.S.-China Permanent Normal Trade Relation as a plausibly exogenous shock, we study the effect of trade liberalization on domestic entrepreneurial entry and new foreign plants in an emerging market. The positive effect on entry rate is concentrated among foreign plants...

Although developing economies are more volatile, firms in developed countries hold more cash and less debt. We show that despite greater aggregate and industry stability, the performance and balance sheets of individual firms in developed countries are more volatile. In developing countries,...

The more the target knows about the bidder, the more difficult it is to pay with overpriced shares. Thus, under bidder opportunism, the fraction of stock in the deal payment is lower with better informed targets. We test this simple prediction using information proxies reflecting industry...

We analyze the stock market impact of Thailand's unique restriction on portfolio capital in flows. The Thai government imposed a very stringent capital control on December 19, 2006 and then quickly abandoned it on December 20, 2006. This experiment helps us separate the impact of foreign capital...