Annual Conference

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Capital Market Development: China and Asia

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May 2013

Market Making Contracts, Firm Value, and the IPO Decision

Hendrik BESSEMBINDER, Jia HAO, Kuncheng (K.C.) ZHENG
We examine the effects of secondary market liquidity on firm value and the decision to conduct an Initial Public Offering (IPO). Competitive liquidity provision can lead to market failure as the IPO either does not occur or the IPO price is discounted to reflect that some welfare-enhancing secondary...
Keywords: designated market maker, affirmative obligation, Information asymmetry, Firm Value
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2013

Manufacturing-Finance Comparative Advantage and Global Imbalances

Rui MAO, Yang YAO
Treating finance as a tradable service, this paper examines how global current account imbalances can emerge as a result of the Ricardian comparative advantage in manufacturing and finance. The financial sector screens borrowers to limit its risk exposure when it provides finance to manufacturing fi...
Keywords: Manufacturing-finance comparative advantage, global imbalances, international division of labor
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Annual Conference

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Economic Transformation of Asia

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May 2015

Mandatory Retirement and the Consumption Puzzle: Prices Decline or Quantities Decline?

Dennis T YANG, Dong YINGYING
This paper investigates household consumption changes at retirement by utilizing a comprehensive, diary-based household survey from China. The survey contains both consumption quantity and price information, which permits separating quantity changes from price changes. The mandatory retirement polic...
Keywords: Retirement, consumption puzzle, Mandatory retirement, regression discontinuity, Consumption vs. expenditure, Time use, Home production
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2021

Mandatory Data Breach Disclosure and Insider Trading

Xiaoli (Shaolee) TIAN, Gilles HILARY, Xi CHEN
Recent data breach have generated concerns that insiders might use cyber risk related nonpublic information in their trading. Using the staggered adoption of data breach notification laws at the state level, we examine whether mandatory breach disclosure affects insider selling behavior. We find tha...
Keywords: Cybersecurity, Data breach, regulation, Disclosure, insider trading
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2018

Managers Pay Duration and Voluntary Disclosures

Qiang CHENG, Young Jun CHO, Jae B. KIM
Given the adverse impact on their welfare, managers are reluctant to disclose bad news timely. In this paper, we examine the effect of managers’ pay duration on firms’ voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers’ annual compensation t...
Keywords: Voluntary disclosures, management forecasts, executive compensation, pay duration
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