This paper introduces the Journal of Multinational Financial Management's special issue on financial management in China. We provide a brief literature review of China's financial management policies, practices, and recent research findings, and describe how papers published in this special...

The objective of this study is to empirically examine the capital structure theories that can explain the capital structure choice made by the firms that are operating in China, India, and South Africa. The study tests the capital structure theories as a stand-alone basis as well as an...

We investigate the relationship between the intensity of share pledging activities and the level of financial constraint. Using a sample of Chinese publicly listed firms from 2003 to 2018, our main findings are fourfold. First, we document that the high financial constraint level may motivate...

We investigate whether the index reconstitutions of the China Securities Index (CSI) are suitable as a quasi-natural experiment to investigate the effect of institutional ownership on corporate policies. Using both actual and predicted index constituents, we document a sharp discontinuity in...

We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that financing constraints lead firms to decrease production but may spur investment in innovation (R&D). We...

Investigating the impact of three types of state ownership on firms' dividend pay-out decisions for the first time, this study focuses on the differences in dividend pay-out behavior among various state ultimate owners. It has been found that the state enterprises supervised by lower level state...

This study investigates the impact of ownership structure on dividend policies of listed companies in the Shanghai Stock Exchange over the period 2007-2011. The results show that firms with higher ownership by the largest shareholder, ownership concentration, and government ownership are more...

In this study, we identify a new type of political connection, referred to as “princelings,” who are the descendants of prominent and influential senior communist officials in the People's Republic of China. We develop a theory of “Golden hens versus Chickens” to describe the major...

There are two types of stock dividend in the Chinese stock market. This paper examines them in the period of 1997-2008. Empirical findings indicate that the stock dividend effect appears twice. The average abnormal return is 0.88% on the stock dividend proposal date and 0.35% on the stock...

There are two types of stock dividend in the Chinese stock market. This paper examines them in the period of 1997-2008. Empirical findings indicate that the stock dividend effect appears twice. The average abnormal return is 0.88% on the stock dividend proposal date and 0.35% on the stock...