Topic:

The Regulatory and Capital-Market Effects of a U.S. Approach to Enforcement: Evidence from China

Time&Date: 

10:00-11:15 AM, 2020/11/12 (Thursday)

Speaker:

Prof. Kai LI (University of British Columbia)

Abstract:

We examine the regulatory and capital-market effects of implementing a U.S. approach to the enforcement of mandatory disclosure in China. Using a hand-collected sample of comment letters (CLs) issued by the Shanghai Stock Exchange over the period 2013-2018, we first show that the price reactions to CL receipts and replies are negative and significant. We then show that targeted firms improve disclosure in response to the regulator’s concerns. Finally, we show that targeted firms do not experience any significant capital-market effects. Our evidence on the decoupling of regulatory and capital-market effects in developing economies has important policy implications. 

Bio:

Dr. Li is Senior Associate Dean, Equity and Diversity, Professor of Finance, and holds the W. Maurice Young Endowed Chair in Finance at the UBC Sauder School of Business, University of British Columbia.  

Dr. Li’s research focuses on the economic consequences of corporate governance mechanisms. Her current research projects explore: (1) human capital and technological synergies in mergers and acquisitions, (2) machine learning in finance, and (3) rent extraction in syndicated loans market. Her research has appeared in Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Financial and Quantitative Analysis, Management Science, Journal of International Business Studies, and many other leading journals in Finance and Economics. She is the recipient of the UBC Killam Research Award, the Sauder School of Business Research Excellence Award, the Barclays Global Investors Canada Research Award, and the Best Paper Award at many international conferences. She is/has been on the Editorial Board of Review of Financial Studies, Review of Finance, Journal of Financial and Quantitative Analysis, Management Science, Journal of International Business Studies, Journal of Corporate Finance, Journal of Financial Stability, and Journal of Banking and Finance. Her research has been featured in Wall Street Journal, New York Times, Washington Post, Financial Times, The Time Magazine, Reuters, CNBC, Bloomberg, Dow Jones Newswire, New Yorker, BBC, BNN, CBC National, National Post, Globe and Mail, U.S. News & World Report, Harvard Business Review, and Yahoo! Finance.