ESG-linked compensation policies propagate through common directors, impacting firm-level environmental innovation performance. Using a sample of U.S. listed firms during 2002-2020, we show that a firm is 2.7% more likely to implement ESG-pay policy if its board-connected peers have adopted it. This

A firm’s decision to initiate Scope 3 emissions disclosure not only reflects the firm’s sustainability efforts but also signals its commitment to decarbonization, fostering collaboration among suppliers in promoting greener supply chains.

There is a wide-spread concern that investment funds use the claim of ESG investing to attract investment flows without making real ESG-oriented investments. Exploiting the establishment of the SEC’s Climate and ESG Task Force (Task Force hereafter) as a plausible exogenous shock to regulatory overs

Based on a sample of the listed 1,456 Chinese State-owned Enterprises (SOEs) with 33,242 firm-year observations spanning the years 2010 to 2023, by manually tracking top executives’ (Chairmen and CEOs) subsequent employment records, we have found that their past ESG performance facilitates their fut

This paper examines the impact of tax haven crackdown on the loan sale market, where majority of the loan buyers are institutional investors. Exploiting the adoption of Tax Information Exchange Agreement (TIEA) intended to reveal haven activities, we find an increase in the probability and intensit

Using a large international sample of firms, we examine the relation between carbon management ability (CMA) and firm-level climate risk exposure. We find that CMA is negatively associated with climate risk exposure. More importantly, we show that firms with high-CMA managers tend to achieve reducti

This study investigates the effect of a firm’s indoor environment quality (IEQ) on its information production. Leveraging a third-party sustainability building rating system that provides IEQ scores for office buildings, we first show that employees in a firm’s headquarters with better IEQ score

Our hypothesis is that the disposition effect - the tendency to sell winners but hold on to losers - is weaker when investors can attribute their losses to forces beyond their control. We test this hypothesis in the disclosure setting that uncontrollable factor disclosure (UFD) in earnings confe

We study how the loan loss provision model and loan officers’ incentive contracts jointly shape lending riskiness. The global shift from the incurred losses (IL) model to the expected credit losses (ECL) model is one of the most significant changes in accounting policies related to bank loans and ha

债券注册制改革放松了对债券余额比例（40%）上限的硬约束监管，本文重点分析了该政策的市场效应。通过特征事实描述发现，随着 40%比例上限硬约束的放开，债券发行人的发债余额比例显著上升，有约 8.1%的债券是由债券余额比例超过 40%的企业发行，且这些企业事前的债务余额比例更靠近 40%。以债券定价角度刻画债券发行人资质进行实证分析后发现，相比未超过 40%的债券，超过 40%比例的债券发行信用利差较低，且一二级市场价差更小，展现了这部分债券较高的定价效率，体现出优质性。

How does management guidance affect market reactions to earnings announcements? To address this question, we use a recent regulatory change in China that shifted guidance from mandatory to voluntary for a set of China’ A-share firms. A large fraction of treated firms immediately stopped issuing guid

Biodiversity loss as a global concern requires drastic shifts in conservation efforts that carry substantial costs. We investigate how the financial market prices such conservation costs, exploiting the “Green Shield Action” (GSA) — an unexpected regulatory change aimed at preserving biodiversit