This study investigates how heterogeneous firms choose their lenders when they raise external finance for Foreign Direct Investment (FDI) and how the choice of financing structure affects FDI activities. We establish an asymmetric information model to analyze why certain firms use private bank...

The shape and magnitude of risk preference of China households have rarely been explored due to lack of detailed data on China households’ investment behavior. Using panel data from China Household Finance Survey (CHFS) 2011 and 2013, we intent to investigate the hypothesis of harmonic...