We construct a DSGE model system with risk and insurance elements to quantify the influence of property and health risk on the economic fluctuations in China. We also study the combination of the expected shocks of risk elements and economic fluctuations in a DSGE frame. We find that: (1) Existence of insurance system can reduce the impact of risk shocks on economic fluctuations. (2) Reducing the excess of insurance and the degree of loss caused by property and health risk, and increasing the effective competition in insurance market can effectively alleviate the economic fluctuations. (3) Performances of expected shocks of property and health risk to economic fluctuations are different. Furthermore, we construct a new model which includes both capital and labor, and the research based on the new model does not change the basic conclusion.

This article studies about how accelerating population aging affects potential economic growth rates by building up a semi-endogenous growth model and conducting numerical simulations. Solution to the model shows that within-household old-age support plays a key role in growth rate determination. Both increasing costs of raising children and decreasing return from children’s old-age support have a negative impact on long-term economic growth. Furthermore, higher education supply will increase household’s expectations for future income, thus increasing birth rates and potential economic growth rates.

Experiencing continuously marketization, how Chinese female respond in labor market have drawn extra attention. This paper adapted Urban Household Survey to capture the trend of labor force participation rate (lfpr) in urban China. We observe that male have higher lfpr than female. Education, marriage and co-residency with children have significant impact on female labor supply. Based on Connelly's (1992) model considering labor supply of mother with children and the Common Preference Models, we constructed labor supply model of each member in the family. We empirically show that local marketization have significant negative effect on female labor participation through increasing price of housework service.

Based on a credit rationing model, we put forward a hypothesis-whether the interest rate liberalization reform has broke “the iron law of interest rate restriction” that means rich farmers benefit more under restricted interest rate. Then, in the empirical chapters, using the data from the field survey, we respectively test the hypothesis’s mechanisms and conclusions. The empirical results show that interest rate liberalization reform does have a significant role in breaking “the iron law of interest rate restriction” in rural areas, however, due to the shift of the three effects during the process of interest rate liberalization, this role is dynamic and periodical. Finally, this paper gives an important policy implication that it is very necessary to periodically look at the role of interest rate liberalization reform and to strengthen the competition in rural financial market.

Along with the reform of financial system, the credit-type shadow banking’s pro-cyclical feature has generated a negative impact on the security and stability of the financial system. Based on the TVP-VAR model, this paper tests the characteristics of credit-type shadow banking’s pro-cyclicality using the data ranging from January,2006 to November, 2016.The test comes to three conclusions. First, from a general view, the credit-type shadow banking owns the feature of pro-cyclicality corresponding to the fluctuation of economy development. Second, because of the time it takes for capital to flow between different markets, its pro-cyclicality is time-lagged. Third, its pro-cyclicality is time-varying due to the change of supply and demand of money market and financial regulation. Therefore, we should pay attention to the credit-type shadow banking’s pro-cyclical behavior characteristic, strengthen the penetration of regulation in order to improve its efficiency in supporting economic growth.

It is difficult for banks to cope with competition by extending loans in the balance sheet along with the intensity of bank supervision. This paper empirically examines the relationship between deposit competition, shadow banking and bank systemic risk, based on the estimation of the Lerner Index and ΔCoVaR, employing an unbalanced panel data of 16 listed banks in China during 2008-2015. The result shows that the fierce bank deposit competition is the vital reason of rapid development of the shadow banking, and banks will become more aggressive in shadow banking if their loan-to-deposit ratio(LDR) is higher or capital adequacy ratio(CAR) is lower. Moreover, shadow banking exacerbates the impact on systemic risk of deposit competition. Bank deposit competition increases bank systemic risk mainly through shadow banking.

This paper explores the impact of financial literacy on households’ formal credit demand and credit behavior by using China Household Finance Survey data in 2015. Summary statistics show that credit constraint is not only prevalent in rural China, but also in urban area. Empirical analyses indicate that financial literacy has a significant positive effect on households’ formal credit demand and their probability to apply for formal credit. Households with better financial literacy also have higher formal credit availability and also obtain more formal credit. Therefore, government should disseminate financial knowledge further to help rectify cognitive bias and steering the better use of financial services.

This paper puts the credit supply side bank and credit demand side enterprise into a DSGE model including financial endogeneity. It seeks to get the solution to relieve credit pro-cyclicality from the credit supply side and demand side meanwhile by the introduction of dynamic provisioning and chattel mortgage. The simulation results based on financial shock show: first, raising the proportion of chattel mortgage in mortgage loan moderately helps alleviate the financing difficulties and could obviously inhibit economic volatility caused by excessive credit crunch on the background of the downturn; second, the forward-looking counter-cyclical dynamic provisioning policy is better than the traditional backward-looking provisioning policy in ironing economic volatility; third, the combination of high enforcement strength in dynamic provisioning policy and moderate enforcement strength in chattel mortgage leads to minimal welfare loss, the combination of both high enforcement strength in two policies leads to maximal welfare loss. It suggests that making and improving dynamic provisioning policy quickly could effectively alleviate the excessive credit crunch caused by economic downturn and it should set enforcement strength in chattel mortgage scientifically to further improve macro-prudential policy’s effectiveness.

The paper uses China Annual Survey of Industrial Firm to explore the effect of Special Economic Zones(SEZ) on firm innovation after we implement PSM and DID. Our results suggest that SEZ has negative effects on firm innovation. Specially, the possibility of firm innovation in SEZ decreases by 7.14 percent. Furthermore, SEZ has negative effects on larger firms and the firms in the regions with better institutional environment. More important, we find that SEZ does not have spillover effects on innovation in a given region. Our empirical results suggest that it is vital for innovation-driven development model to frame a good institutional environment and transform the SEZ to public innovation platform.

This paper discusses the impact of carbon emission information disclosure on firm market value under the background of climate change and government regulation. The results show that: the disclosure of carbon emission information has a positive impact on corporate market value; high carbon corporate’s emission disclosure behavior is more conducive to enhance its market value; firms’ emission disclosure behavior in Caron Trade Pilot cities have little impact on their market value. We also discuss the mechanism of corporate’s carbon emission disclosure affecting the market value based on two assumptions which are market signal transmit effect and production value effect. It shows that corporate’s emission disclosure behavior affects the confidence of investors, and they improve the corporate’s market value in financial market, but there is no evidence about value spillover effect in production market. This paper discusses the information effect of energy conservation and emissions reduction and extends the literature of corporate finance, corporate social responsibility and market information effect.

Using the data of venture capital (VC)-backed IPO firms in China from 2000 to 2012, this paper examines the effects of VC syndication on corporate innovation. The results show that the firms backed by VC syndication are more innovative than those backed by individual VC. Moreover, innovation of the firms backed by VC syndication increases as the number of VCs in the syndication grows. In addition, syndication with longer investment duration has a greater positive impact on corporate innovation. Using propensity score matching to mitigate potential endogenous problems, the baseline results are robust. We also find that the positive impact of syndication on innovation is stronger when differences in VC firm characteristics across syndication members are larger or differences in investment forms across syndication members are smaller. When the proportion of investments and institution size of the lead VC are smaller, it improves corporate innovation more significantly. In sum, these findings suggest that firms and investors should pay more attentions to how venture capital funds invest in firms in order to enhance VC investment efficiency.

Using a sample of A-share listed companies for the period 2008-2014 which disclosure R&D spending data,we find not all listed companies capitalize the R&D expenditures that meet capitalization criteria. Firstly, capitalization of R&D expenditure reduces the current cash flow,thereby reducing the current value-added function of R&D spending. The higher degree of capitalization of R&D spending,the higher value-added in the next phase,which shows listed companies generally follow the accounting standard requirements and the capitalization signals the corporate value to the market. Secondly, executives facing “conflict of interest” inflate the capitalization and damage the interests of shareholders, which would result in the “signals” mechanism failing.

This paper focuses on the application of Fama-French five factor model in China stock market, by sampling A-share listed firms for the period from July 1994 to August 2015. Our main conclusions are: (1) size effect and book-to-market effect are significant, when profitability effect and investment effect remain but neither momentum nor reversal after three-factor adjustment in all ample test; (2) five-factor model performs better than CAPM, three-factor model and Carhart model; (3) market risk dominates before Split-share structure reform while profitability, investment and momentum factors are redundant, but the latters get priced after the reform;(4) there exists significant reversal effect adjusted by five-factor model after the reform; (5) the difference between realized and expected return is more close to zero after the reform, which means capital market tends to be more effective.