We investigate how optimal attention allocation of green-motivated investors changes information asymmetry in financial markets and thus affects firms‘ financing costs. To guide our empirical analysis, we propose a model where investors with heterogeneous green preferences endogenously...

We consider the investment timing and financing decisions of financially constrained small and medium-sized enterprises (SMEs) in a dynamic setting with asymmetric information. To alleviate its financing constraints, an SME finances a risky project using equity-for-guarantee swaps (EGS), which...

This study quantifies the impact of write-down equity (WDE) on bank stability and risk-taking incentives under ambiguity aversion. We decompose payoffs to bank stakeholders into sets of barrier options and present closed-form solutions for their prices. Our paper shows that: first, write-down...

China has experienced extraordinary institutional and socio-economic changes after 1978, and its deepening reform to market-oriented economy since 1990s was also recognized as one the most significant factors to drive China's rise in the contemporary world. Although many aspects of China's...

Aiming at the coastal residential area, considering the natural characteristics of wind and photovoltaic energy, the supply characteristics of gas and electric energy, the energy consumption law of cold, heat and electricity and the complementary and coupling relationship of various energy...

Using a sample of listed state-owned enterprises in China from 2013 to 2018, this paper focuses on the impacts of compensation regulation policy on the changes of incentive mode for SOE executives. We find that after the policy, the compensation incentive channel for highly-paid executives has...

We investigate how optimal attention allocation of green-motivated investors changes information asymmetry in financial markets and thus affects firms' financing costs. To guide our empirical analysis, we propose a model where investors with heterogeneous green preferences endogenously allocate...