This paper constructs a forward-looking monetary policy reaction model with expectations both in inflation and output. Using survey data of professionals’ expectations in China from 2001 to 2015, this paper investigates the reaction mechanism of China monetary policy on economic output and inflation rate. The empirical results suggest that the nature of dynamics is very different in quantitative and price-based policy reaction functions, whereas the degree of policy smoothness is similar. The forward-looking behavior of monetary policy mainly reflects in inflation expectations while there is no significant reaction in the output expectations. In addition, the central bank adjustment is countercyclical to inflation expectations but procyclically to output. This asymmetric reaction indicates that the central bank of China prefers low inflation but high economic growth.

We develop a theoretical model of European quantitative easing policy impact on Chinese export through the perspective of exchange rate spillover effects for the first time. We also test the exchange rate spillover effects on exporters in China with the panel fixed effect model. Our results show that, firstly, the spillover effects stimulate the export value and volume of Chinese firms on the whole. Secondly, it turns out that when firms export to a destination country which appreciates under the influence of European quantitative easing policy, the export value and volume will be improved, and the results are opposite for the countries depreciate. Thirdly, we find that the export value and volume improved when we export to the countries appreciate relative to China, and vice versa for the counterpart. Furthermore, our results show that the ordinary trade will be affected most compared to the processing trade.The impacts of exchange rate spillover effect on state-owned-enterprises are limited, while foreign-owned-enterprises will benefit most from European quantitative easing policy.

This paper takes trade intermediaries into exporters, and uses big data of China's Customs Database during 2000-2009 to analyze the differences between trade intermediaries and direct exporters when facing to exchange rate movements. The results show that due to lower export distribution costs, trade intermediaries are more responsive to exchange rate, and are more likely to make adjustments in dual margins. When exchange rate changes every 1%, compared to direct exporters, the adjustment of trade intermediaries in extensive margin and the intensive margin are higher than 0.90% and 0.47%, which means trade intermediaries have a higher price transitivity; After 2004, with the emergence of “export disintermediation”, the reaction of trade intermediaries to exchange rate have weakened. Therefore, China's “export disintermediation” is a result of “self-selected” behavior of indirect exporters based on export stability when facing exchange rate volatility.

This paper presents an overlapping generation model including postponed retirement and government expenditure, and we explore the effect of postponed retirement and adjustment of government expenditure on the replacement ratio. We find that postponed retirement and government social security expenditure have positive effect on the replacement ratio. Postponed retirement decreases saving, which in turn lowers both capital per capita and wage income. Postponed retirement decreases pension through its negative impact on wage income, whereas it has positive effect on pension through its impact on the labor supply. Government social security expenditure lowers productive expenditure, which in turn has negative effect on capital and wage income. Government social security expenditure can increase pension directly. Our results suggest that, the government should adopt growth enhancing program from both macro and micro perspectives, so as to improve social welfare.

This paper explores the effects of anti-corruption on fixed asset investment and mechanism. Specifically, this paper studies how anti-corruption affects the scale, structure and efficiency of investment exploiting the shocks of senior official sacked. Using the panel data of Chinese provinces from 1998 to 2013 and the Annual Survey of Industrial Firms(ASIF) from 1998 to 2007, we find that the shocks of senior official sacked suppress growth of investment, and mainly suppress SOEs' investment which is subjected to greater regulation, but not the other types of investment. We confirm our primary finding in the micro level using industrial enterprises data, and find that the shocks of senior official sacked improve investment of high-efficient enterprises. It's helpful to promote investment efficiency. Our findings are meaningful to understand the investment behavior of SOE and the construction of a clean government. Enhancing the cleanliness of government organizations, and vigorously promoting the decentralization of government power, is the effective measures to promote investment.

Using data of city commercial banks in China from 2005 to 2013, this study analyzes the influence of real estate price fluctuation on city commercial banks' loan loss provisions. This study finds that real estate price increasing has a significant positive correlation with city commercial banks' loan loss provisions. This study also finds that banks audited by “Big-Four” audit firms and state-owned banks tend to reserve greater loan loss provisions when real estate price increases. Further analysis shows that banks tend to reserve greater loan loss provisions when they have branches in area with higher real estate growth rate. These findings help city commercial banks to avoid operating risks and financial risks caused by real estate price fluctuation.

In this paper, we select 166 city commercial banks and rural commercial banks in China as sample from 2006 to 2015. Based on provincial judicial data of china and discipline inspection data of CPC, we explore the effects of occupational crimes on bank risk by System GMM. This paper get the conclusions: (1) The rise of occupational crimes will led to the rise of bank risk; (2) Occupational crimes have less influence on the bank with better risk management; (3) Occupational crimes have more influence on the bank with more profitability; (4) The higher the level of the grabbing hand, the more the effects of occupational crimes on the bank risk; (5) The lower the level of legal, the more the effects of occupational crimes on the bank risk. Suggestions are given according to the conclusions.

We analyze three supplying factors affecting the life insurance's consumption that are the quality (surrender ratio, portion of traditional life insurance), momentum (portion of new business), and efficiency (DEA efficiency). The empirical evidence suggests that improving the quality and efficiency of life insurance supply significantly increases the consumption of life insurance. Moreover, the momentum on the supply front creates additional consumptions. This paper is original in the sense that we design an empirical framework to quantitatively assess the supplying effectiveness and supplying factors' impact on consumption. In addition, we improve and innovatively apply the spatial autocorrelation model on the insurance consumption studies.

Short selling has been evolving into an important governance mechanism in China. Using a data set of listed firms in the Shenzhen Security Exchange during 2006 to 2015, we investigate the effect of short selling on corporate information disclosure quality in China. After controlling for common factors and possible endogeneity issues with a set of multi-period Difference-in-Differences approaches, Placebo test and Propensity Score Matching, this research finds that the short selling has a positive, causal effect on corporate information disclosure quality. We further employee the average daily balances of securities short sales as proxy for the magnitude of short selling and use ETF ownership as its instrumental variable, the above result shows robust. Moreover, we find that the impact is more pronounced for firms located in regions with more developed financial intermediaries and/or better legal protection. Finally, we find short selling can improve corporate information disclosure quality through channels such as increasing managerial incentives as well as reducing information asymmetry. This research calls for a relaxation to short selling and a complete system to support short selling, where short shelling can play the role of corporate governance.

How to accurately test the effect of trading halts and reform our existing trading suspension system accordingly has become an urgent issue. Using the cancellation of the abnormal volatility trading halts in Shanghai and Shenzhen stock exchanges in 2012 as a natural experiment, we overcome the difficulty to control the impact of the difference in the information shock and more accurately test the effect of trading halts. Moreover, for the first time we test the implementation effect of the cancellation of the abnormal volatility trading halt. We find that abnormal volatility trading halt increases post-halt volume and volatility and decreases liquidity. These results imply that abnormal volatility trading halt impairs rather than improves market efficiency.

In this paper, we use the idea of natural experiment to examine the effect of circuit breaker on the stock market. The two trading days (January 4th and 7th,2016 ) are included in the Circuit Breaker Treatment, and three trading days when the HS300 stock index decreased more than 7% in 2015 are included in the Control Treatment. Based on the intraday stock trading data, the empirical results show that the circuit breakers when implemented significantly increased order imbalance and market participants displayed behavior consistent with the magnet effect. Especially, after the HS300 index fell by 5%, the circuit breakers played a role on increasing the order imbalance on stocks no matter they hit the price limit or not. The effect of circuit breaker was first observed in H300 index stocks and then in the non-HS300 stocks. The magnet effect of circuit breaker is sensitive to the trading volume of Share Price Index Futures, margin trading and trading from the channel of Shanghai-Hong Kong Stock Connect program. Our results have implications for improving the mechanism and regulation aimed at maintaining the stock markets during turbulent periods.

This paper examines the influence of venture capital on the dividend policy of listed companies. We find that venture capital backed listed companies are more inclined to pay cash dividend and have a higher dividend payment than non VC-backed companies. This effect is ever stronger when venture capitalists hold larger shareholding. During the financial crisis, venture capitalists could help companies loosen the financial constraints, and thus enhance their dividend payment. Venture capitalists which participate the board of directors, or which face short-term funding pressure are more likely to prompt the listed companies to increase the cash dividend payment.

Studies on cost stickiness help reveal the “black box” of firm cost management. In this paper, we examine whether and how customer concentration affect firm cost management from cost stickiness. The results show that, there a U type of nonlinear relation between customer concentration and cost stickiness, and this relation only exists in private firms, there is no effect of customer concentration on cost stickiness in SOEs. Further evidence shows that, the negative relation between proportion of sales from the largest customer and cost stickiness is stronger when the largest customer is private. The paper not only contributes to the literature on economic consequences of customer concentration from financial accounting and corporate finance, but also provides insight on the studies of cost management from supply chain management.