src/java.xml/share/classes/com/sun/org/apache/xml/internal/serializer/dom3/DOM3TreeWalker.java

@@ -1,7 +1,7 @@
 /*
- * Copyright (c) 2015, Oracle and/or its affiliates. All rights reserved.
+ * Copyright (c) 2015, 2016 Oracle and/or its affiliates. All rights reserved.
  */
 /*
  * Licensed to the Apache Software Foundation (ASF) under one or more
  * contributor license agreements.  See the NOTICE file distributed with
  * this work for additional information regarding copyright ownership.

@@ -366,12 +366,10 @@
      * Optimized dispatch of characters.
      */
     private final void dispatachChars(Node node)
         throws org.xml.sax.SAXException {
         if (fSerializer != null) {
-            this.fSerializer.characters(node);
-        } else {
             String data = ((Text) node).getData();
             this.fSerializer.characters(data.toCharArray(), 0, data.length());
         }
     }
 

@@ -1064,11 +1062,13 @@
                 // The filter should not apply in this case, since the
                 // EntityReference is not being expanded.
                 // should we pass entity reference nodes to the filter???
             }
 
-            if (fLexicalHandler != null) {
+            // if "entities" is true, or EntityReference node has no children,
+            // it will be serialized as the form "&entityName;" in the output.
+            if (fLexicalHandler != null && ((fFeatures & ENTITIES) != 0 || !node.hasChildNodes())) {
 
                 // startEntity outputs only Text but not Element, Attr, Comment
                 // and PI child nodes.  It does so by setting the m_inEntityRef
                 // in ToStream and using this to decide if a node is to be
                 // serialized or not.