We examine the effect of government ownership on tax evasion in China. After correcting for the partial observability of tax evasion, we find that state-owned enterprises (SOEs) are more likely to evade taxes and less likely to be detected than non-SOEs. After being caught for tax evasion, SOEs...

Fraud exists in all walks of life and detecting and preventing fraud represents an important research question relevant to many stakeholders in society. With the rise of big data and artificial intelligence, new opportunities have arisen in using advanced machine learning models to detect fraud....

We use a proprietary database of institutional investors' daily stock transactions to test the validity of a common managerial perception that transient institutions sell their stock ownership indiscriminately upon announcements of small negative earnings surprises, resulting in unwarranted...

We use a proprietary database of institutional investors' daily stock transactions to examine transient institutions' trading behavior in response to announcements of small negative earnings surprises (defined as quarterly earnings that fall short of analysts' consensus forecasts by one cent)....

We use Regulation Fair Disclosure (REG FD) to examine a relatively neglected but important effect of disclosure regulation: externalities. REG FD applies to all publicly traded U.S. firms, but foreign firms cross-listed on U.S. stock exchanges are explicitly exempt. Despite the exemption, we...

We examine the consequences of a management earnings forecast regulation implemented in a staggered manner. The regulation substantially increases the directly affected firms' frequency of management forecasts. Nevertheless, approximately 14% of the directly affected firms fail to comply with...

Firm quality is a foundational construct in the fundamental analysis literature. Asness et al. (2019), a recent representative example of this literature, measures firm quality based on 19 fundamental ratios guided by valuation theory (referred to as Asness’ Q score). We examine whether it is...

We examine whether allowing publicly listed firms to adopt equity-based compensation increases shareholder value for firms domiciled in weak institutional environments. We test our idea using a series of regulations in China that allowed publicly listed Chinese firms to adopt equity-based...

We explore the possibility of using CEOs' social media messages to measure their personality. We use independent observers to measure CEOs' perceived personality based on the popular Big Five personality model. We use M&A initiations to validate the quality of our Big Five personality measures....

Using a lobbying event that led to the unexpected reversal of a tougher insider trading blackout regulation in Hong Kong, we examine whether tightening insider trading regulation increases shareholder value. We find that repealing the regulation increases shareholder value for the entire Hong...