The authors thank the following for their insightful comments and suggestions: Matthew Cedergren, Guoli Chen, Cristian Dezso, Yongtae Kim, J. T. Li, Kevin Li, Yinghua Li, Hai Lu, Shaohua Lu, Tammy Madsen, Jo-Ellen Pozner, Guoman She, Yongxiang Wang, Zhe (Adele) Xin, Haifeng You, and Yanfeng Zheng as well as participants at the 14th Annual Rotman Accounting Research Conference, Chinese University of Hong Kong (Shenzhen), Fudan University, Hong Kong University of Science and Technology, Santa Clara University, and Xiamen National Accounting Institute. The authors thank Chao Jin and Lynn Wang for their excellent research assistance.