In emerging markets, the deviation between the ultimate controlling shareholders' voting rights and their cash flow rights (hereafter “DVC”) in the listed firms is quite prevalent. DVC could be introduced due to the ultimate controlling shareholders' opportunistic incentives, as well as by...

We examine the effectiveness of China's IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increase after China's IFRS adoption, and some evidence that it actually declines,...

Social ties between mutual funds and the companies in which they invest (investees) can both facilitate information transfers and encourage favoritism. Using the investment choices of mutual funds in China, we compare investment performance of holdings in companies that are socially connected to...

We examine the effectiveness of China's IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increase after China's IFRS adoption, and some evidence that it actually declines,...

In emerging markets, the deviation between the ultimate controlling shareholders' voting rights and their cash flow rights (hereafter 'DVC') in the listed firms is quite prevalent. DVC could be introduced due to the ultimate controlling shareholders' opportunistic incentives, as well as by their...

We examine the impact of China's IFRS adoption on foreign institutional investment. We find that foreign institutional investment does not increase after China's IFRS adoption, and some evidence that it actually declines, particularly among firms with weaker incentives to credibly implement...

We examine the consequences of a 2010 Hong Kong regulation that allows, for the first time, companies incorporated in mainland China and cross-listed in Hong Kong (H share companies) to hire mainland domiciled auditors to audit their Hong Kong financial reports. We find that less than one third...

Using data on foreign institutional investors’ China equity holdings, we show that U.S. institutional investors avoid investing in China’s defense industries when American public’s attention to China-U.S. tension and ideological differences is high, especially during the Trump...

This paper compares the value of political ties and market credibility in China by examining the consequence of corporate scandals. We categorize Chinese corporate scandals by whether the scandal is primarily associated with the destruction of i) the firm’s political networks (political...