This paper examines the intra-industry effects of bond defaults on corporate cash holdings. The staggered difference-in-differences regression results find that corporate cash holdings decrease following the first default within each industry, and the results are driven by firms with more severe...

MetLife Inc. is a leading life insurance company with 90 million customers in more than 50 countries around the globe. They have established a strong presence in these over 50 countries through organic growth, acquisitions, joint ventures and other partnerships. Their 2012 revenue was $68...

An emerging literature suggests that biodiversity on the earth broadly affect the functioning of ecosystems and society. This paper investigates whether and how the local biological diversity improves the scientific research competitiveness. Using a manually-collected dataset of research grants...

Exploiting the staggered expansion of China’s high-speed rail (HSR) network, we study the relationship between HSR connection and firms’ financial asset holdings. the difference-in-difference estimation shows that firms connected to HSR network experience a drop in the financial asset...

This paper investigates the impact opening of high-speed railways (HSR) on scientific research competitiveness using data from the National Natural Science Foundation of China (NSFC) research grants. We employ a difference-in-differences framework to estimate the causal effects of the treatment...

Natural resources are important assets in a region, and resource depletion may lead to the disappearance of local collateral, which may be priced by the capital market. This paper investigates the impact of resource depletion on the spread of municipal corporate bonds using data from the lists...

The China-U.S. trade frictions and COVID-19 pandemic have caused unprecedentedly high economic policy uncertainty since 2017. To resist this high uncertainty, investors may prefer large stocks over small stocks, thereby damaging the size effect. To test this inference, we apply data from China...

This study investigates the association between the expansion of formal finance through the opening of high-speed railway (HSR) and the risk of private lending in China, using data from China Judgments Online. The study employs a difference-in-differences approach and reveals that the cities...

This paper studies how market-wide credit risk affects the liquidity pricing in the bond market. With the emerging wave of China's bond defaults, the illiquidity premium is observed only after the first bond default, and it becomes significantly larger with the rising market-wide credit risk. In...

Using comprehensive loan-level data in China, we investigate how the deregulation on bank entry barriers alters local banking industrial organisation and its economic consequences. We document a novel trade-off: the potential benefits of deregulation are adversely mitigated by entrant banks’...