The authors gratefully acknowledge the helpful suggestions of Elizabeth Blankespoor; Christian Leuz; Paul Koch; Ties de Kok; Ed deHaan; Sunghan Lee; Dawn Matsumoto; Xiumin Martin; Khim Kelly; seminar participants at Carnegie Mellon University, Iowa State University, Rutgers University, Singapore Management University, University of Central Florida, University of Chicago, and University of Washington; and participants at the Humboldt University International Research Training Group 1792 Summer Camp. W. Huang acknowledges support from the Research Grants Council of Hong Kong Special Administrative Region, China. H. Lu acknowledges support from the Social Sciences and Humanities Research Council in Canada and the McCutcheon Professorship in International Business at the University of Toronto.