This paper examines the changes in households' trading behavior after winning an IPO allotment in China—a purely luck-driven event. We find that these households subsequently become overconfident: they trade more frequently and lose more money relative to other households. This effect is...

This paper examines the changes in households' trading behavior after winning an IPO allotment in China—a purely luck-driven event. We find that these households subsequently become overconfident: they trade more frequently and lose more money relative to other households. This effect is...

We present evidence that males are more tolerant of sex crimes than females. We exploit a natural experiment, in which a firm’s executive rapes a nine-year-old girl. Based on individual-level stock transaction data (over two million observations), we show that, after this crime, females are...

We study the extent and determinants of p-hacking in experimental accounting studies. Based on p-values in experimental studies published in top accounting journals, we find an unusual abundance of p-values that are just significant: the observed frequency of p-values equal to 0.05 is 22% to 30%...

This paper exploits a natural experiment to investigate the causal effects of the auditing fees on auditing quality: China recently imposed a minimum auditing fee requirement which forces some auditing firms to charge higher fees to their clients. We find a significant decrease in auditing...

We show that the migration of low-skilled, rural workers to urban centers has a negative causal effect on innovation of firms in such urban centers. Our tests exploit the staggered relaxation of city-level household registration system in China, which facilitates rural residents to migrate to...