This study documents the pervasive effect of IPO restrictions on Chinese equity markets. From 2007-2018, unlisted firms paid an average of $562M USD to listed firms for their shell value in reverse merger transactions. This large “shadow price” for public-listing explains many unusual...

Economic theory suggests production complementarity is an important driver of sectoral co-movements and business cycle fluctuations. We operationalize this concept by developing a measure of the production complementarity distance (COMPL) between any two companies. We find firms from different...

We document several factors that help explain cross-sectional variations in the post-revision price drift associated with analyst forecast revisions. First, the market does not make a sufficient distinction between revisions that provide new information ("high-innovation" revisions) and...