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their clients’ natural disaster risk …
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subsidies exhibit large stock price crash risk. We establish causality of government subsidy dependence on crash risk using … and show that government subsidy-dependent firms are associated with a higher likelihood of accounting restatement and … valuation uncertainty. Our findings demonstrate that reliance on government subsidies imposes significant risk on investors …
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When markets freeze, not only are gains from trade left unrealized, but the process of information production through prices, or price discovery, is disrupted as well. Though this latter effect has received much less attention than the former, it constitutes an important source of inefficiency...
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