A recent reform in China, the Shanghai-Hong Kong Stock Connect program, made a subset of Chinese stocks investable for foreign investors, thus partially opening China's stock market. We use this reform to examine the quantity and quality effects of stock market liberalization on corporate...

To stabilize their financial markets, many governments implement a number of rescue programs. Direct purchase intervention—rarely observed in the past due to the concern of moral hazard problems and aversion to government ownership—has been commonly considered a potential way to stabilize...