There is increasing emphasis on the importance of efficient financial markets for sustained real investment and economic growth, yet limited empirical research on the effects of the deregulation of financial markets on the firm''s investment decisions. The purpose of this paper is to model the...

How does short selling affect corporate decisions? To answer this question, we examine corporate investment decisions in a model with short selling. We show that high short selling activities can cause firms to overinvest and the agency problems between managers and shareholders are the driver...

A recent reform in China, the Shanghai-Hong Kong Stock Connect program, made a subset of Chinese stocks investable for foreign investors, thus partially opening China's stock market. We use this reform to examine the quantity and quality effects of stock market liberalization on corporate...

Covers -- Guest editorial -- CFO appointment and debt-equity choice -- Social media information and analyst forecasts -- Share classes, families and asset purchases: Canadian evidence -- Sarbanes-Oxley, agency conflicts and the marginal value of capital expenditure -- An overview of C-SOX and...