This paper examines how a firm’s employment policy, particularly employee cash profit-sharing plans, affects its financial reporting. We find that firms with employee cash profit-sharing programs are more likely to engage in downward earnings management to reduce labor costs, especially with...

Using a unique proprietary account-level trading dataset in China, we investigate how active information acquisition alleviates price-based return comovement, a typical anomaly in stock splits. We find that: 1) individual trading drives the comovement and the trading correlation between split...

This study examines whether foreign investors affect the information production of analysts. Based on China’s stock market, we find that foreign investors significantly reduce analysts' coverage. Such negative association is more pronounced in firms with a high level of governance and...