This paper reviews the practice and research on environmental, social and governance (ESG) in China. It finds that (1) under China’s top-down framework, ESG practices have grown substantially in ESG disclosure, ESG rating and ESG investing; and (2) ESG research has focused on corporate ESG...

We investigate an externality of earnings pressure from capital markets. We define earnings pressure as managers’ incentives to meet or beat earnings expectations. Using detailed establishment-level sulfur dioxide emission data from China covering 2003 to 2012, we find that firms with earnings...

We develop a model to illustrate that controlling shareholders choose the level of investor protection that maximizes their own interests. Controlling shareholders in companies with complicated control structures can easily extract private benefits and are thus reluctant to enhance investor...

We study how government control affects the roles of the media as an information intermediary and a corporate monitor. Comparing a large sample of news articles written by state-controlled and market-oriented Chinese media, we find that articles by the market-oriented media are more critical,...

Exploiting China's anti-corruption campaign, we show that following a decrease in corruption, firm performance improves. Small and young firms benefit more. We identify the channels through which corruption hampers firm performance. Following the anti-corruption campaign, the allocation of...

Does failure in a marriage foretell failure to repay credit? Analyzing the loan portfolio of a representative bank, we find no significant differences in the probability of default between divorcees and others, but we do find evidence for taste-based discrimination against divorcees. Compared to...

In this paper, we examine how social networks among political leaders matter for state capacity. Using a unique data set covering the government work reports of city and central governments, we find that city leaders with hometown connections with Politburo Standing Committee Members implement...

In this paper, we examine whether city Party Secretaries in different cities who were born in the same locality implement similar policies, which are measured using a unique data set constructed from city governments’ work reports. We find that they implement divergent policies. The...