Working Papers - Peking University HSBC Business School(PHBS)

Peer Pressure and Moral Hazard: Evidence from Retail Banking Investment Advisors

It is generally believed that pressure from peers induces employees to improve their efficiency and performance, b

Chen Lin, Chenhao Wang, Yuchen Xu, Ting Zhang

Working Paper | No. 20221106 |

Keywords: Peer pressure, Moral hazard, Retail investment advisor

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Over-Commitment in M&A Valuation Adjustment Mechanism Agreements

AbstractWith hand-collected data on Chinese M&A agreements between 2010 and 2019, this paper reveals that some tar

Chaohui Chen, Chen Lin, Yuchen Xu, Linlan Yang

Working Paper | No. 20221105 |

Keywords: Valuation Adjustment Mechanism (VAM), Mergers and Acquisitions (M&A), Myopia

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The Impact of Securities Regulation on New Keynesian Firms

This paper describes a new fact and then analyzes its implication for aggregate ﬂuctuations: sticky-price ﬁrms o

Erica Xuenan Li, Jin Xie, Ji Zhang

Working Paper | No. 20221104 |

Keywords: Nominal Rigidities, Financial Accelerator, New Keynesian Models, Earn-ings Misstatement, Sarbanes-Oxley Act, Monetary Policy

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Migration, Tariffs, and China’s Export Surge

We build a multi-sector spatial general equilibrium model that features heterogeneous firms and workers location choices to

Chen Liu, Xiao Ma

Working Paper | No. 20221103 |

Keywords: International trade, tariffs, labor-market adjustments, migration, firm loca-tion choices

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On the Fragility of DeFi Lending

We develop a dynamic model of DeFi (decentralized finance) lending incorporating the following key features: 1) bo

Jonathan Chiu, Emre Ozdenoren, Kathy Yuan, Shengxing Zhang

Working Paper | No. 20221102 |

Keywords: Decentralized finance, smart contracts, dynamic price feedback; financial fragility; ad-verse selection

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Do Corporations Maximize their Own Value?

The ﬁrst generic challenger to a branded drug tends to feature an investor base that has substantial stakes in

Martin Schmalz, Jin Xie

Working Paper | No. 20221101 |

Keywords: Ownership, corporate objective, corporate governance

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Financial Constraints, Cash Flow Timing Pattern, and Asset Prices

We show that firms collect more than 70% of their cash flow in the second half of the year We also find tha

Weiping Hu, Kai Li, Xiao Zhang*

Working Paper | No. 20220907 |

Keywords: Cash flows, Cash flow timing pattern, asset prices, equity financing costs

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Leasing as Capital Reallocation

In this paper, we argue that leasing is an important alternative way of capital reallocation We propose a broader measure of capital reallocation, which not only includes asset purchase and sale, but also considers lease Empirically, we show that the

Kai Li, Yiming Xu

Working Paper | No. 20220906 |

Keywords: Leased capital, collateral constraint, capital reallocation, cyclical pattern

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Faster Uniform Convergence Rates for Deconvolution Estimators From Repeated Measurements

Recently, Kurisu and Otsu (2022, Econometric Theory 38(1), 172-193) derived the uniform convergence rates for the

Liang Chen, Mingyuan Zhang

Working Paper | No. 20220905 |

Keywords: Nonparametric deconvolution, Kotlarski’s identity, rate of convergence

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Financial Market Structure and Risk Concentration

We propose a framework that jointly determines bilateral trading networks and risk allocation between banks Banks