We investigate how state ownership affects a firm's term structure of yield spreads by examining SOEs in the Chinese bond market. Both Regular-SOEs and Policy-SOEs have substantially lower spreads than non-SOEs, and Policy-SOEs have even lower spreads than Regular-SOEs at shorter maturities, but...

Portfolio diversification of firms' controlling owners influences their firms' capital investment. Empirically, the effect of owners' portfolio diversification on their firms' investment levels is positive for publicly-traded firms and tends to be negative for privately-held ones. These findings...

As the economy enters a phase transition into an aperiodic state, the tech industry finds itself at the brink of chaos. Inflated evaluations in private markets before IPOs and increasing Shannon entropy of post-IPO share prices reveal a market teetering on the edge. But is it a phase transition,...

Chinese share prices rose sharply on the Politburo's Dec. 4th, 2012, announcement of its Eight-point Regulation, an uncharacteristically detailed and concrete Party policy, initiating an extensive anti-corruption campaign and announced surprisingly soon after a change in leadership. The reaction...