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This study examines the impact of employee treatment on family business innovation. Our empirical research shows that beneficial employee treatment can increase family business innovation input and output. Moreover, the empirical conclusions pass the robustness and endogeneity tests. An additional analysis shows that non-salary aspects of employee treatment can significantly increase the quantity and quality of innovation output; however, they have little to no impact on innovation input. Further, we find that the higher the levels of trust in society, trust in organizational decisions, and trust in co-workers are, the stronger is the role of employee treatment in family business innovation.

China's global export rank rose from the 32nd in 1978 to the 1st in 2009, and in the same period China had been a top recipient of foreign direct investment (FDI) in the world. Does large FDI inflow automatically lead to the export boom? Or is it a must for China to have certain absorptive capacity (AC) given FDI? This work investigates how manufacturing exports (MX) are affected by the AC-FDI interaction. MX performance is assessed by three indicators: export capacity, export intensity, and export quality. AC is defined as a host-country's ability to capture potential benefits from FDI, and such ability is proxied by government FDI policy, human capital, RD (b) China's strong AC largely comes from well-designed FDI policy and high quality infrastructure, both of which complement with FDI in strengthening export capacity, intensity and quality; and (c) human capital and R&D seems to be more helpful for China to capture spillovers from FDI to export quality.

Motivated by the importance of geopolitical risk and its possible predictive power for oil volatility, this paper aims to quantitatively investigate the role of geopolitical risk (GPR), especially serious geopolitical risk (GPRS), in forecasting oil volatility. For research purposes, the GARCH-MIDAS model is extended by incorporating GPR and GPRS. Then, the new extensions are examined from the perspectives of both statistical and economic significance. In-sample results show that GPR and GPRS lead to oil market fluctuations, while the out-of-sample results strongly confirm that the GARCH-MIDAS-GPRS model with serious GPR significantly outperforms the GARCH-MIDAS model. Moreover, both GPR and GPRS help gain higher economic returns. In particular, serious geopolitical risk contains useful information for the recent future oil volatility and can provide the best economic gains. Oil market investors and government policymakers should pay more attention to extreme geopolitical events and serious geopolitical risk in the context of risk management and portfolio allocation.

There are some statistical anomalies in the Chinese stock market, i.e., positive return skewness, anti-leverage effect (positive returns induce higher volatility than negative returns); and reverse volatility asymmetry (contemporaneous return-volatility correlation is positive). In this paper, we first confirm the existence of these anomalies using daily firm-level stock return data on the raw returns, excess returns and normalized excess returns. We empirically show that the asymmetry response of investors to news is one cause of the statistical anomalies if short sales are constrained. Then in the context of slow adoption of security lending policy, we conduct panel analysis and empirically verify that the lifting of short sale constraints leads to significantly less skewness, less anti-leverage effect and less reverse volatility asymmetry. Positive skewness is a feature of lottery. Investors are encouraged to bet on the upside lottery like potentials in the Chinese markets where the stocks skew more to the upside when short sales are constrained., Comment: 26 pages, 3 figures, 4 tables