This paper comprehensively examines the risk-return relation of cryptocurrency carry trade using realistic borrowing and lending interest rates. We find significant violations of the uncovered interest rate parity in the cryptocurrency market. The cross-sectional carry trade strategy yields an...

We introduce learning into the hedge fund managers’ risk choice problem with imperfect information. We find that with a constant but unobserved expected return on investment, learning induces managers to take more risks and increases manager compensation. When the return is stochastic,...

To stabilize their financial markets, many governments implement a number of rescue programs. Direct purchase intervention—rarely observed in the past due to the concern of moral hazard problems and aversion to government ownership—has been commonly considered a potential way to stabilize...

This study comprehensively reviews the relationship between green finance and sustainable development, specifically focusing on combatting climate change and achieving carbon neutrality. Utilizing a narrative review methodology, the study examines a range of scholarly articles and publications...

This paper comprehensively reviews the interconnections between climate change, decarbonization, and green finance. The urgency of addressing climate change and its catastrophic consequences needs to focus on green finance as a vital tool in the global struggle against environmental damage....

To expand enterprises is a question receiving much concern. At least it needs to consider questions of scale, culture, control and strategy. From appearance, reasonable scale, harmonious culture, peace talk of control and strategy in steps make the face of enterprises¡¯ expansion; from the...

We analyze the impact of bad-tail risks on managerial pay functions, especially the decision to pay managers in stock or in options. In contrast to conventional wisdom, we find that options are often a superior vehicle for limiting managerial incentives to take bad-tail risks while providing...

We examine the role of firms' government connections, defined by government intervention in CEO appointment and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. We demonstrate that government connections are associated with substantially...