Tag Archives: China

Polluted IPOs 

By | October 13, 2022

Regulatory oversight is important for safeguarding investors’ interests and ensuring the efficient functioning of financial markets. However, oversight can sometimes fail due to extraordinary factors such as resource constraints and political connections. Our recent study shows that oversight failure can also occur because of reduced productivity of regulators due to severe fine particulate matter air… Read More »

Going Out by Doing Good: The Effect of Mandatory CSR Disclosure on Outward FDI of Chinese Firms

By | October 11, 2022

China has become a major global investor and witnessed massive amounts of outward foreign direct investment (OFDI) in recent years. Prior studies have shown that OFDI can be an important channel through which Chinese firms explore market opportunities, acquire strategic assets, and exploit global network linkages. However, internationalizing Chinese firms usually face the so-called liability… Read More »

Finance without Law: The Case of China  

By | September 29, 2022

Can there be a highly developed financial market without the legal protection of investors and creditors? The law and finance literature is built on the premise that legal protection is essential to the development of a financial market. In the 17th century, for example, the English monarch was able to borrow money whereas his French… Read More »

To Achieve the Same Goal in Different Ways: How Institutional Ownership Affects Firms’ CSR Activities in China 

By | September 21, 2022

Research from industrialized economies reveals that institutional ownership can boost the corporate social responsibility participation of companies (Chen et al., 2019). These studies argue that stating their opinions, or the mere prospect of voting, can improve institutional investors’ influence over firms’ CSR policy. But does this story apply in emerging economies? The answer is YES.… Read More »

How Does Deleveraging Affect Funding Market Liquidity?

By | August 31, 2022

Financial institutions are highly leveraged due to the extremely low interest rates of the past decade. However, interest rates are now rising worldwide due to inflationary pressures, which can lead to plunging stock markets and significant deleveraging of financial institutions. Policymakers, academics, and practitioners are concerned about the impact of deleveraging. In our recent paper,… Read More »

Corruption and Innovation in China 

By | June 15, 2022

In the past four decades, China has been demonstrated miraculous growth records as well as rampant corruption, which presents a paradox for scholars: Is corruption is conducive to Chinese economic development? Some argue that corruption is “grease” in the economy and helps firms bypass inefficient regulation and red tape, while others believe that corruption exacerbates… Read More »

The End of the War or the Commencement of Battle?  

By | May 19, 2022

Cryptocurrency Regulation in China  In September 2021, China’s central bank, its highest court and procuracy, as well as seven other national government departments and agencies jointly enacted a legally binding Notice on Further Preventing and Disposing of the Risks of Speculative Trading in Virtual Currencies (“Notice”), marking the culmination of China’s yearslong war against cryptocurrencies.… Read More »

What to Expect When Central Bank Digital Currencies Cross Borders—the Spillover Effects and Corresponding Policy Responses

By | August 20, 2021

Central bank digital currencies (CBDCs) impact a sovereign state’s monetary policy and financial markets, and necessitate a rethink of the roles of modern states and central banks. The current literature around CBDCs focuses on two dimensions: (1) the impact of CBDC on monetary and macroprudential policies, and (2) the institutional infrastructure, legal mandates, and technical design… Read More »

Are Foreign Donors Good Monitors?

By | June 28, 2021

Economic and accounting literature has long found that foreign investments provide a multitude of benefits to local stock markets and economies. Foreign inflows to for-profit firms are found to harvest not only capital but also managerial and marketing skills in addition to business connections and human resource development. For-profit foreign institutional investors have also been… Read More »