This paper investigates the effect of introducing index futures trading on the spot price volatility in the Chinese stock market. We employ a recently developed panel data policy evaluation approach (Hsiao et al. 2011) to construct counterfactuals of the spot market volatility, based mainly on...

In this study, we examine the effect of introducing SSE 50ETF index options trading on stock market volatility using a panel data evaluation approach. Based on the cross-sectional dependence among international stock indices and macroeconomic indicators, we estimate the counterfactual volatility...

In this study, we examine how the national intellectual property (IP) model cities awarded by the National Intellectual Property Administration affect firm innovation activities in China. The difference-in-difference regression with a matched sample indicates that the recognition of IP model...

Literature has extensive discussions on the driving forces of takeover activities, including investor sentiment, liquidity, and fundamental shocks. We examine how manager sentiment affects takeover characteristics and long-term performance by using data constructed from textual analysis based on...

Natural disasters can cause heavy economic losses to firms that may propel them to overuse earnings management to change public perceptions about the damage brought by these events. This may lead to potential profit manipulation and accounting fraud, eventually damaging the interests of...

We evaluate the financial risk and explore potential motivation of pervasive external guarantee activities. Using a sample of Chinese A-share listed firms during the period from 2008 to 2017, we find a positive association between external guarantees intensity and stock price crash risk. High...

We conjecture that some individuals are increasingly overwhelmed by the myriad of new ideas proposed to them each year. As a result, even minor obstacles to understanding an innovation causes such innovation to not be adopted. To test this conjecture, we turn to ideas proposed in scientific...

We evaluate the economic consequences of mutual fund advisory misconduct from 2000 to 2015. An average of 31.25% reduction in monthly fund flows occurs in one year after the misconduct. The effect is more pronounced in funds facing strong investor monitoring. Although all types of misconduct...

This study finds a negative association between firm-level political risk (PRISK) and firm-level patents and citations in general. The PRISK extracted from different sectors also shows similar effects. This impact is more pronounced when a firm belongs to economically uncertain states,...