We investigate the long-standing puzzle on the underpricings of convertible bonds. We hypothesize that the observed underpricing is induced by the possibility that a convertible bond might renegotiate on some of its covenants, e.g., an imbedded put option, in financial difficulties. Consistent...

China is now an economic superpower. However, the sustainability of this Chinese economic miracle rests upon good governance buoyed by the rule of law. Whilst the notion of the rule of law is a complex subject matter, the ability to bring about a social order backed by laws under an integrated...

Currency boards are subject to runs if the foreign currency reserve is insufficient to back the convertible money supply. We construct a simple model capturing the main features of a currency board to analyze a government's decision to maintain or abandon a currency board based on the costs and...

Tung Chung-Shu (179-104B.C.) synthesized the works of Confucius and Mencius to come up with a blueprint for the creation of civil society based on hierarchical order and moral cultivation, known as ‘San Gang Wu Chang’. ‘San Gang’ refers to the obligations attached to three key...