We investigate the unique role and mechanisms of industry growth in firms’ risk-taking policies. We find that industry growth is negatively associated with corporate risk-taking, consistent with the prospect theory that a high-growth industry gives firms a superior external environment, which...

This paper separates the amount of IPO underpricing (primary market underpricing) and overvaluation (secondary market overvaluation) from the value of an IPO’s initial return to evaluate the relative importance of these two factors and their main determinants. Using data on the IPOs of 948...

Recently, with the migration of wealthy Chinese elites becoming increasingly prevalent, the market has come to believe that firms with controlling persons with foreign residency rights have serious agency problems. We study the impact of controlling persons with foreign residency rights on...

Information is the basis for independent directors to make correct decisions. The study found that the participation of independent directors in the shareholder meetings would help them to obtain more real information and curb the excessive risk taking phenomenon of firms caused by agency...