Holländer (1990) argued that when non-monetary social approval from peers is sufficiently valuable, it works to promote cooperation. Holländer, however, did not define the characteristics of environments in which high valued approval is likely to occur. This paper provides evidence from a...

In randomized control laboratory experiments, we find that those primed to think about markets exhibit more trusting behavior. We randomly and unconsciously prime experimental participants to think about markets and trade. We then ask them to play a trust game involving an anonymous stranger. We...

Using the green finance policies (GFPs) in China as a shock to capital allocation, we find that the implementation of GFPs improves audit quality for green firms. Specifically, green firms are likely to receive favorable audit opinions, pay lower audit fees, and generate higher-quality financial...

In this paper, we examine the joint impact of corporate political connections and ownership structures on the auditor reporting behaviours and firms' auditor choice patterns in the Chinese market. We construct a natural experiment that alleviates endogeneity concern by employing 56 corruption...

The Economic Stimulus Packages which was introduced in response to the recent global financial crisis has been debated vigorously for its implications for economic efficiency. Using Chinese firms in the period 2003-2013 from the supply side perspective, we show that with the implementation of an...

Using a sample of China's listed firms during 2007-2009, we examine the effect of internal and external corporate governance mechanisms on collateral requirements of bank loans. We find that governance of foreign shareholders, other large shareholders and the two-tier boards affect collateral...

This study investigates the effect of bank ownership on lending and firm investment efficiencies to give reasons for the mixed evidence that exists on the impact of bank ownership on firm performance. Using China's listed firms as an example, we find that bank ownership reduces the efficiency of...

This paper explores the puzzle of inconsistent findings in regard to bank lending decisions and the negative response to bank loan announcements in China. Using firm performance before and after the lending decisions, adjusted for the effects of earnings management, we are able to examine not...

Previous theoretical and empirical studies suggest that CEOs' political connections are valuable to firms. We examine whether such connections become constraints if the expected political capital fails to materialize and the firm lacks other type of political power in place. Using a sample of...

This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP),...