From the Confucian perspective, a sage should possess three characteristics: a noble moral character; profound knowledge, and a remarkable ability to put his ideals into practice. Sages are born out of the circumstances of their times, they are the inheritors and promulgators of worthy...

To expand enterprises is a question receiving much concern. At least it needs to consider questions of scale, culture, control and strategy. From appearance, reasonable scale, harmonious culture, peace talk of control and strategy in steps make the face of enterprises¡¯ expansion; from the...

We analyze the impact of bad-tail risks on managerial pay functions, especially the decision to pay managers in stock or in options. In contrast to conventional wisdom, we find that options are often a superior vehicle for limiting managerial incentives to take bad-tail risks while providing...

We analyze a model of anomaly discovery. Consistent with existing evidence, we show that the discovery of an anomaly reduces its magnitude and increases its correlation with existing anomalies. One new prediction is that the discovery of an anomaly reduces the correlation between deciles 1 and...

We examine the role of firms' government connections, defined by government intervention in CEO appointment and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. We demonstrate that government connections are associated with substantially...

increased idiosyncratic volatility. The calibration results further indicate that earnings management by individual firms does not only deliver the observed features in their own stocks, but can also be strong enough to generate market-wide patterns.

Regulatory investigations affect information in financial markets through two channels: (i) investigations detect financial manipulation and reveal hidden negative information;(ii) regulatory investigations impose adverse consequences for executives involved in manipulation and deter managerial...

We initially derived elevation changes of Geoscience Laser Altimeter System level-2 altimetry data of Lambert Glacier overlapping footprints during each mission from 2003 to 2008. Then, surface elevation changes during every two adjacent missions were interpolated using inverse distance...

This paper examines the role of firms'government connections, defined by government intervention in the appointments of Chief Executive Officers and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. In line with the previous literature,...

This paper analyzes executive compensation in a setting where managers may take a costly action to manipulate corporate performance, and whether managers do so is stochastic. We show that an increase in the possibility of manipulation actually calls for executive pay to be more responsive to...