Annual Conference

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Corporate Finance

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May 2015

Does It Pay for Entertaining Your Stakeholders?

Haibing SHU, Ou-Yang HUI, Sonia WONG
Using a unique dataset on business entertainment expenditure (BEE) spent by Chinese public firms from 2004 to 2012, this paper performs the first systematic study on the effects of BEE on firm performance. We find that BEE can improve future firm performance and firm valuation, while it has not been...
Keywords: Business Entertainment Expenditure, Transaction costs, Favor-seeking, firm performance, Stakeholders
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2018

Does Foreign Direct Investment Lead to Industrial Agglomeration?

Wen-Tai HSU, Yi LU, Xuan LUO, Lianming ZHU
This paper studies the effect of foreign direct investment (FDI) on industrial agglomeration. Using the differential effects of FDI deregulation in 2002 in China on different industries, and using the Ellison-Glaeser index as the measure of industrial agglomeration, we find that FDI actually affects...
Keywords: industrial agglomeration, Ellison-Glaeser index, pro-competitive effect
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2019

Does fiscal policy matter for stock-bond return correlation?

Hao ZHOU, Ji ZHANG, Tao ZHA, Erica X.N. LI
We explore an important role of monetary-fiscal policy interactions in explaining three stylized facts: (1) a positive correlation of stock and bond returns in 1971-2001 and a negative one after 2001, (2) a negative correlation of consumption and inflation in 1971-2001 and a positive one after 2001,...
Keywords: Stock-bond return correlation, consumption-inflation correlation, fiscal-monetary policy regime, bond risk premium, technology shock, investment shock
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2018

Does Financial Globalization Propagate Managerial Skills? Lessons from the Mutual Fund Industry

Hong ZHANG, Massimo MASSA, Si CHENG
We examine whether globalization may unintendedly allow financial institutions with low managerial skills to grow. Using a complete sample of global mutual funds, we find that low-skilled fund companies may strategically differentiate their products by launching new funds that track less-explored fo...
Keywords: Globalization, Cross-border capital flows, Mutual Funds, Skills, market efficiency
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Annual Conference

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Accounting

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May 2016

Does fiduciary duty to creditors reduce debt covenant violation avoidance behavior?

Shai LEVI, Benjamin SEGAL, Dan SEGAL
Financial reports should provide useful information to shareholders and creditors. Directors, however, normally owe fiduciary duties to equity holders and not creditors. We examine whether this slant in fiduciary duties affects the extent to which firms use financial engineering to circumvent debt c...
Keywords: Debt Structuring, Director Fiduciary Duties, Board Independence
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