This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression d...This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression discontinuity design,we causally show that,by increasing loan availability,TRRRCs significantly alleviate the financial constraints and cash dependence of SMEs and consequently reduce tax avoidance.This is especially the case among firms with lower market power and higher entertainment and travel costs.Our findings provide evidence for the real effect of TRRRCs on corporate tax avoidance and show the inclusive effect of TRRRCs on SMEs.In doing so,we indirectly reveal a rent-seeking channel underlying bank lending,thus offering clear policy implications for regulators.展开更多
In this study,we take a machine learning-based approach to measure institutional investor attention to corporate social responsibility(CSR)issues when communicating with firms during site visits.We find that instituti...In this study,we take a machine learning-based approach to measure institutional investor attention to corporate social responsibility(CSR)issues when communicating with firms during site visits.We find that institutional investors can effectively enhance CSR performance through CSR-related communication.This effect remains robust to various checks and is more pronounced for non-state-owned enterprises and firms with lower levels of institutional ownership and in periods following the issuance of Green Investment Guidelines.We also identify information asymmetry and financing constraints as the two mechanisms underlying this effect.Overall,our findings highlight the importance of private interactions between management and institutional investors in promoting CSR.展开更多
This paper investigates how information asymmetry and mutual fund ownership affect listed companies' earnings management. We show that(1) reducing information asymmetry improves firms' earnings management beha...This paper investigates how information asymmetry and mutual fund ownership affect listed companies' earnings management. We show that(1) reducing information asymmetry improves firms' earnings management behavior;(2)relative to short-term mutual funds, long-term mutual funds promote earnings quality by adopting a monitoring role; and(3) by dividing firms into high/low information asymmetry groups, we find that the information environment significantly increases the effect of long-term mutual funds on firms' earnings management. In this paper, we provide new evidence for the role that institutional investors play in a typical emerging capital market. Our results have clear policy implications: to increase earnings quality, it is essential to improve information transparency and develop long-term institutional investors.展开更多
This paper investigates how institutional holding and earnings quality influence the liquidity of assets. Contrary to findings in developed markets, we document several novel results in China＇s stock market： （1） i...This paper investigates how institutional holding and earnings quality influence the liquidity of assets. Contrary to findings in developed markets, we document several novel results in China＇s stock market： （1） institutional holding negatively affects assets＇ liquidity, （2） earnings quality is negatively related with liquidity. Since earnings quality captures asymmetric information, low earnings quality induces high divergence in investor opinions and thus boosts market trading, and （3） interestingly, the effect of earnings quality on liquidity is greater if institutional investors＇ holding is at a high level. Overall, our findings cast doubt on the conventional wisdom that institutional investors and earnings quality improve market liquidity. The results are robust to different measures and alternative model specifications.展开更多
Numerous studies have shown that a sex ratio imbalance(more boys than girls in a society)may result in a sequence of social problems.This study investigated the expected effect of a high sex ratio on educational inves...Numerous studies have shown that a sex ratio imbalance(more boys than girls in a society)may result in a sequence of social problems.This study investigated the expected effect of a high sex ratio on educational investment.Using nationally representative data from the China Family Panel Studies and the 2010 Census,we determined the following:(i)a high sex ratio increased educational expenditure for boys relative to girls;(ii)parents who took education seriously and who cared about their children's education were more likely to invest in education to appear attractive in the future marriage market,and(iii)the profound impact of a high sex ratio on educational expenditure was more pronounced in less educated and poorer families.Our findings raised the possibility that the effect of the sex ratio may bring about more gender inequality in the future.The implicit cost of a high sex ratio may further lead to a vicious cycle of family fertility and childbearing.展开更多
基金Funding was provided by National Natural Science Foundation of China(Grant No.71772178).
文摘This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression discontinuity design,we causally show that,by increasing loan availability,TRRRCs significantly alleviate the financial constraints and cash dependence of SMEs and consequently reduce tax avoidance.This is especially the case among firms with lower market power and higher entertainment and travel costs.Our findings provide evidence for the real effect of TRRRCs on corporate tax avoidance and show the inclusive effect of TRRRCs on SMEs.In doing so,we indirectly reveal a rent-seeking channel underlying bank lending,thus offering clear policy implications for regulators.
基金supported by the Major Program of National Fund of Philosophy and Social Science of China(No.19ZDA105).
文摘In this study,we take a machine learning-based approach to measure institutional investor attention to corporate social responsibility(CSR)issues when communicating with firms during site visits.We find that institutional investors can effectively enhance CSR performance through CSR-related communication.This effect remains robust to various checks and is more pronounced for non-state-owned enterprises and firms with lower levels of institutional ownership and in periods following the issuance of Green Investment Guidelines.We also identify information asymmetry and financing constraints as the two mechanisms underlying this effect.Overall,our findings highlight the importance of private interactions between management and institutional investors in promoting CSR.
基金financial support from the Nature Science Foundation of China(NSFC:7117307870803013)
文摘This paper investigates how information asymmetry and mutual fund ownership affect listed companies' earnings management. We show that(1) reducing information asymmetry improves firms' earnings management behavior;(2)relative to short-term mutual funds, long-term mutual funds promote earnings quality by adopting a monitoring role; and(3) by dividing firms into high/low information asymmetry groups, we find that the information environment significantly increases the effect of long-term mutual funds on firms' earnings management. In this paper, we provide new evidence for the role that institutional investors play in a typical emerging capital market. Our results have clear policy implications: to increase earnings quality, it is essential to improve information transparency and develop long-term institutional investors.
基金Acknowledgements We gratefully acknowledge the financial support from the National Natural Science Foundation of China （No. 71173078, 70803013）.
文摘This paper investigates how institutional holding and earnings quality influence the liquidity of assets. Contrary to findings in developed markets, we document several novel results in China＇s stock market： （1） institutional holding negatively affects assets＇ liquidity, （2） earnings quality is negatively related with liquidity. Since earnings quality captures asymmetric information, low earnings quality induces high divergence in investor opinions and thus boosts market trading, and （3） interestingly, the effect of earnings quality on liquidity is greater if institutional investors＇ holding is at a high level. Overall, our findings cast doubt on the conventional wisdom that institutional investors and earnings quality improve market liquidity. The results are robust to different measures and alternative model specifications.
基金support from the Major Project of National Social Science Foundation of China (No.21ZDA010).
文摘Numerous studies have shown that a sex ratio imbalance(more boys than girls in a society)may result in a sequence of social problems.This study investigated the expected effect of a high sex ratio on educational investment.Using nationally representative data from the China Family Panel Studies and the 2010 Census,we determined the following:(i)a high sex ratio increased educational expenditure for boys relative to girls;(ii)parents who took education seriously and who cared about their children's education were more likely to invest in education to appear attractive in the future marriage market,and(iii)the profound impact of a high sex ratio on educational expenditure was more pronounced in less educated and poorer families.Our findings raised the possibility that the effect of the sex ratio may bring about more gender inequality in the future.The implicit cost of a high sex ratio may further lead to a vicious cycle of family fertility and childbearing.
