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Studies showing that parental involvement benefits children’s educational outcomes often imply a one-directional causal relationship between the two. However, children’s academic achievement also shapes parental behaviors, and mothers likely respond differently to children’s academic performances than fathers do. This study instead considers parental involvement and children’s academic performance as a reciprocal relationship. Drawing on panel data of junior high school students in China, we test two competing theories: the compensation theory, which hypothesizes a negative relationship between children’s academic achievement and parental involvement, and rational choice theory, which argues for a positive relationship. Our findings show that parental involvement indeed positively associated with children’s test scores, lending support to the rational choice theory. The bidirectional relationship is evident in children’s cognitive test scores, as well as in Chinese, math, and English test scores. Additionally, parents differently respond to children’s academic achievement. Specifically, mothers adjust their involvement based on children’s performance, while fathers do not. By highlighting the reactive nature of parental involvement, this study underscores the interdependent nature of parental behavior and children’s schooling outcomes.