Social Trust and Differential Reactions of Local and Foreign Investors to Public News

For helpful comments and encouragement, the authors would like to thank Snehal Banerjee, Feng Li, Roger Loh, Christopher Parsons, Jun Qian, Nancy Qian, Paola Sapienza, Andrei Shleifer, Rene Stulz, Luigi Zingales, and seminar participants at American Economic Association Meetings, CKGSB, Hong Kong University, Mitsui Finance Symposium at University of Michigan, NBER Behavioral Finance Meeting, NBER Conference on Chinese Economy, Peking University, SAC, Stanford China Conference, and Tulane. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.