The paper examines the economic effects of the trial judgement of joint and several liability on BDO China. Our study has the following findings: first, the capital market regarded the judgement as a signal to strengthen investor protection; second, the judgement pushed the auditors to enhance...

We conducted a sensitivity analysis of the results of weighted voting experiments by varying two features of the experimental protocol by Montero et al. (2008): (1) the way in which the roles of subjects are reassigned in each round (random role, RR, versus fixed role, FR) and (2) the number of...

An extensive body of debt structure research explores the coordination failure among creditors of taking heterogeneous debt. This paper, in contrast, provides empirical evidence for the positive role played by debt heterogeneity in reducing stakeholder-driven costs of high leverage. Using a...

Research on capital structure and product market interactions shows that high leverage is associated with substantial losses in market share due to unfavorable actions by customers and competitors. We examine whether corporate social responsibility (CSR) affects firms' interactions with...

An extensive body of international business research examines how cross-country variations in legal institutions influence corporate finance practices. Building on this literature, as well as the literature on capital structure and product market interactions, we investigate the effect of an...