This comment restudies Black¡¯s (1990) [Black F., 1990. Mean reversion and consumption smoothing. Review of Financial Studies 3,107-114.] paper and shows that the conclusions in Black (1990) are not right.

We examine the effect of corporate ownership structure on the market value of excess cash in Chinese listed firms. We find that state ownership has a positive effect, as the market value of excess cash is greater in state-owned firms than in privately controlled firms. Furthermore, we show that...

This paper examines the effects of the recent financial crisis on corporate cash holdings and saving propensities. We find that on average, firms reduce their cash holdings in the first year of the crisis when the supply of external finance is tightened, and increase their holdings in cash from...

We use the occasion of a change in tax policy that raised the tax rate for many of the listed companies in China to examine tax-induced earnings management (TEM) from the perspective of political connections. We find that when the tax rate increased, only those affected firms with politically...

This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to...

This article studies the corporate investment decision problem faced by a manager whose compensation is pegged to the stock price at some future time (rewarding time)in a market that the stock price may deviate from its fundamental value. It provides an analytical solution on the optimal...

This open access book explores new research directions in social inequality and urban segregation. With the goal of fostering an ongoing dialogue between scholars in Europe and China, it brings together an impressive team of international researchers to shed light on the entwined processes of...

This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to...

This study investigates whether reliance on monetary donations alters nonprofit firms' behaviors. Specifically, in the hospice industry, shortening patients' length of stay (LOS) speeds turnover, allowing a hospice to serve more patients and expand its donation network. We measure hospices'...

Resale of used products may shrink the new-product market and create the cannibalization problem. This problem is exacerbated in the digital goods market because copies of digital goods can be perfect substitutes of the original. Many digital goods/service producers take advantage of technology...