This study examines capital allocation efficiency in the business group when parent firms experience adverse shocks of financial conditions. We exploit a quasi-experiment in China, the mandatory dividend of a state-owned business group in 2007, to conduct difference-in-differences estimation,...

Using the US-China trade war as a quasi-natural experiment, we investigate how downstream firm shrinkage affects upstream firm employment from the perspective of supply chain transmission effects with a difference-in-differences (DID) design. We reveal a significant negative impact of downstream...

We examine the causal effects of the coronavirus disease 2019 (COVID-19) on air quality in the context of China. Using the lockdowns in different cities as exogenous shocks, our difference-in-differences (DID) estimations show that lockdown policies significantly reduced air pollution by 12% on...