This paper examines the consequences of Chinese regulators deviating from a long-standing full bailout policy in addressing the distress of a city-level commercial bank. This policy shift led to a persistent widening of credit spreads and a significant decline in funding ratios for negotiable...

Environmental protection against pollution has become a common issue faced by the whole world. In the case of the international cooperation on controlling the environmental pollution, the developing and developed countries have different understanding on the principle of “common but...

Using detailed mutual fund holdings in the US market, we estimate active mutual fund managers’ loss aversion as a function of both funds’ past performance and asset allocations. We document a substantial variation in loss aversion over time. We further find managers' loss aversion is higher...

This paper studies a coordination game with incomplete information and the option to delay. The delay option enables the agents to observe a binary signal depending on whether the early actions (e.g., investment) surpasses a threshold. The anticipation of information incentivizes agents to wait...

Regulatory disclosures, such as supervisory bank stress tests, are pre-scheduled and conducted on a regular basis to improve transparency and enhance market discipline. We build a dynamic model with asymmetric information to investigate the effectiveness of such regulatory disclosures. We find...

Abstract: Backgrounds: Currently, China has implemented second child policy, and at the same time, many cities in China have Promulgate immigration policy to appeal labor force mainly for talented people, these measures are aim to avoid the aging problems. Chinese population structure has...

This paper develops a model to investigate the interaction between collective decision-making in voting and financial speculation. Protesting voters demand policy reforms by voting against the incumbent, but too many opposing votes result in an unfavorable outcome --- political regime change....

This paper investigates the value of academic independent directors (ADs) by exploring an unexpected policy shock that forces ADs to resign from Chinese listed firms. Around the announcement of the policy, stock prices of firms with ADs drop by 2.2%, which translates to a loss of 135M RMB...

Termination procedures shape creditors' payoffs both in and before bankruptcy, and in turn have implications on their willingness to stay invested (or exit) while the firm is still far away from distress. We build a dynamic coordination model and study three frequently cited termination...