This study examines whether poor air quality affects corporate debt cost. By employing a regression discontinuity design (RDD) based on the discontinuity of air pollution caused by the Qinling-Huaihe line in China, we found that poor air quality significantly raises the debt cost of firms after....

This paper constructs a two-stage sequential game model to investigate the spillover effect of inward FDI on the efficiency improvement of domestic firms across different ownership types in host countries. Our model shows that given the optimal spillover policy made by foreign firms, the impact...

Exploiting a quasi-natural experiment in China in which some firms become investible to the global market across different periods (i.e., pilot firms), we evaluate the role that stock market liberalization plays in shaping local firms’ incentives to invest in corporate social responsibility...

In this paper, we analyze the return-volatility relation for the New Third Board market in China. Various properties for cross sectional (daily and weekly) returns and volatility are obtained and interpreted. The cross sectional return-volatility relations are analyzed at weekly frequency and...

This paper proposes a new theory so called bilateral rent-seeking to explain the dramatic growth of foreign direct investment (FDI) inflow in China in the past several decades. We construct a Nash bargaining model to illustrate the relevance of how the reciprocal relationship between the local...

Based on China-listed firms, we investigate the relationship between air pollution and dividend payout. We document that air pollution promotes firms to pay higher dividends, and address the endogeneity by regression discontinuity design (RDD) and instrument variable (IV) regression....