The new public management of the 1980s was based in part on a range of important new insights about the role of transaction and agency costs arising from contractual incompleteness in defining the boundaries of the firm and the governance relationships within it. In this paper, we consider the...

Prior studies on developed markets have documented that conditional conservatism is positively associated with investment efficiency. In this study, we investigate whether this association can be shaped by the unique institutional environment—state ownership of firms and banks—in China....