Given the recent controversy over deviations of street earnings from GAAP earnings, we show that the nonrecurring items that analysts include in street earnings are more persistent and have higher valuation multiples than those items they exclude from street earnings. In addition, we find no...

We use account-level data from the Shenzhen Stock Exchange to show that daily price limits, a widely adopted market stabilization mechanism, may lead to unintended, destructive market behavior: large investors tend to buy on the day when a stock hits the 10% upper price limit and then sell on...

China's Belt and Road Initiative aims at enhancing economic connectivity and cooperation between China and neighboring countries, and promote common prosperity. Guangdong is one of the leading economic regions of mainland China. Based on the guidance of the national policy, Guangdong-Hong...

This study investigates the role pre-existing personal connections play in a crucial element of the supply chain – supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual supplier (hereafter, supplier) increases when personal...

This paper investigates whether interpersonal connections among executives affect the choice of suppliers by customers and the resulting shareholder wealth effect. We find that pre-existing social connections between customer's executives and potential supplier executives increase the likelihood...

We investigate the impacts of real estate price changes on firms' investment and financing using detailed real estate transaction data in China. China witnessed the real estate prices rise for more than a decade and recent "housing purchase restriction" policies enforced in 46 cities generated...

Using the 2003 initial impoundment of the world's largest hydroelectric dam as a natural experiment, we assess how rural households with varying endowments adapt differently to the dam-induced water scarcity in the downstream area. In response to a 13\% reduction in rice yields, those who are...

We study how the spillover of peer firms’ litigation risk affects a focal firm’s voluntary disclosure. We find that focal firms facing greater litigation risk spillovers reduce disclosure activities by lowering both the likelihood of issuance and the frequency of management earnings...

Bundling is commonly used by online retailers and is receiving increasing attention. We investigate bundling in a dual-channel supply chain whose members use an agency selling contract, where a manufacturer distributes its product with a constant price in the dual-channel and pays a commission...

We investigate whether a firm's share of the underfunding in its multiemployer defined-benefit pension plans (MEPPs) is priced by shareholders and creditors. Prior to the FASB's new MEPP standard (effective December 2011), when the disclosures on such plans were sparse, we find evidence (some...