This paper uses the dynamic spillover index based on cointegrated VAR model for the first time, to evaluate the influence of 811 Exchange Rate Reform comprehensively, and to examine the effectiveness of 811 Exchange Rate Reform quantitatively. Our results show that, from the beginning of 2013 to 811 Exchange Rate Reform, the directional spillover of the central parity declined continuously, and its market-orientation and benchmark level decreased constantly. So it is very necessary to choose the right time to improve quotation of the central parity. After 811 Exchange Rate Reform, the overall spillover of exchange rate system of RMB against US dollar, the directional spillover received by the central parity from all other prices, and the directional spillover transmitted by the central parity to all other prices displayed a clear upward trend. At the same time, the mutual spillover structure between the central parity and single exchange rate also changed significantly and the effects of onshore CNY spot and future markets further highlighted. Therefore, 811 Exchange Rate Reform has achieved the desired effect, the linkage level of the entire system increased substantially, the market-orientation and benchmark status of the central parity has been enhanced. At present, there is no difference between the size of the central parity receives information spillover and that of other market prices, the market-orientation level of the central parity can meet the needs of the benchmark exchange rate. However, although the external spillover of the central parity improved obviously after 811 Exchange Rate Reform, compared with other market prices, the ability that the central parity influences other prices is weaker. That is to say, the benchmark level of the central parity should be further enhanced, and this is the direction of further reform.

Compiling the ultra-long term bond yields is critical in establishing a reasonable yield curve. Taking into account the liquidity condition of ultra-long term bonds, this paper establishes an arbitrage-free term structure model by introducing a liquidity factor that describes the yields of ultra-long term bond under the Nelson-Siegel setting. The empirical study shows that the model performs well in fitting the yield curve. Investors demand an invariant positive liquidity premium for ultra-long-term bonds, and the liquidity factor is highly correlated and consistent with traditional liquidity measures. Finally, impulse response analysis shows that there is a significant interaction between the liquidity factor and the three NS factors, and according to variance decomposition, the contribution of the liquidity factor is significant in explaining the variance of the level and slope factors.

We formulate a dynamic stochastic general equilibrium framework to analyze the effect of local government's land finance on China's economic fluctuation. We estimate the model using Bayesian method and identify that housing demand shock is the main driving force behind real estate market volatility. Then we show that local government's land finance amplifies the volatility in real estate market on the one hand, and propagates it to real economy to amplify the volatility of consumption, investment and output on the other hand. Impulse responses from the model match the VAR evidence. This process can cause social welfare loss which positively relates to the dependence of local government on land finance.We argue that land supply policy implemented by the government can be used to alleviate it.

Is it failed for cross-border M&A of Chinese firms? The paper substitutes effective of firms as productivity, R&D and new products. We investigate the relationship between cross-border M&A and development of effective using BVD database in 2003-2008. By data matching we use different-in-different and counterfactual to estimate above questions. So we find several results. Firstly, cross-border M&A contributes the productivity of firms. Secondly, cross-border M&A helps the firms R&D. Thirdly, cross-border M&A is helpful for the development of new products. Beside that we also find that cross-border M&A has long effect on the effective of the firms.

Based on data of 2485 Public-Private Partnership (PPP) projects in 46 developing countries along “the Belt and Road” from 2002 to 2013, we empirically investigate the effect of institutional factors and international financial institutions in the success of PPP projects. We find out that: (1) Countries with more positive experiences are more likely to succeed the following PPP project; (2) PPP projects are more likely to fail with higher degree of private sectors’ risk sharing; quality of institution influences the success of PPP by directly influencing private sectors’ risk sharing; (3) Institutional quality of the investment destination has mixed impact on the degree of private sectors’ risk sharing in PPP projects; specifically, increased rule of law, higher bureaucratic effectiveness, stronger control over corruption and better support to private sectors’ development are more likely to encourage private entities to shoulder more risks within the partnership, however, the democracy level of counties presents the contrary effect;(4) Multilateral financial institutions are positive factors to private sectors during choosing risk structure.

Under the condition of maintaining stable growth, this paper has explored the relationship between financial friction and leverage governance, and analyzed effects of financial friction in different situations on changes of investments, outputs and leverage of non-state-owned companies, state-owned companies and whole society. We find that, under the condition of maintaining stable growth, reducing implicit guarantee, improving direct financing facilitations and stabling indirect financing facilitations are efficient policy combinations for achieving steady growth and deleveraging; meanwhile, informal financing facilitations which have been represented for non-deposit-taking lending organizations have been on a relatively appropriate level, so normalization and transparent are keys to developing informal finance. Weakening implicit guarantee should become the major direction of enhancing resource allocation efficiency and deleveraging.

This study employs Chinese Industrial Enterprises Database to examine the impact of interest rate volatility on firm inventory investment behavior. We find that: (1) financially more constrained firms have a more negative exposure of their inventory investment to interest rate volatility because of the asymmetry of the interest rate channel; (2) the effect is more significant on the state-owned enterprises; (3) financial marketization helps alleviate the negative effect. Our results support the view that, as China liberalizes its interest rates, the central bank should take measures to avoid the emergence of large fluctuations.

Under the regulation of interest rate, when regulated interest rate is lower than market interest rate, companies need to pay additional implicit capital costs to get the bank loan. We then analyze the determinations and consequences of this phenomenon theoretically and empirically. Using entertainment expenses of companies as the proxy of implicit costs, we find that: (1) Companies who pay more implicit cost of capital can get more bank loan; (2) Banks prefer to offer short-term loan to companies in order to reduce the credit risk in above behavior; (3) The macro environments and companies’ characters could affect the relationship between entertainment expenses and bank loan. The effect of entertainment expenses will be lower under serve credit environment and in high risk companies, but be higher in SOEs and big companies. Our findings are helpful to understand the role and consequences of regulation in financial markets of transitional and emerging economies.

The purpose of this paper is to investigate how insurers’ cost efficiency changed after the implementation of C-ROSS relative to the first-generation system (C-SI). Based on the data from 2013-2015, we evaluate the cost efficiency of China non-life insurers by using an econometric model with intermediate outputs. By comparing the efficiency scores and shadow prices of intermediate activities, we find that: 1) The financial intermediation activities are over used in both C-ROSS and C-SI so that it is likely to further reduce costs by decreasing the quantities of these activities; 2) The risk management activities, although being improved, still have large potential to be utilized to improve insurers’ cost efficiency, especially for small insurers; 3) The overall efficiency score changed very small. The results suggest that Chinese non-life insurers should spend more effort to improve their risk management abilities and diversify investment risks in order to improve cost efficiency.

Based on the consolidated micro panel data, we used the policy of Environmental-friendly Manufacturing Zones in Dongguan as a quasi-natural experiment, and proposed a framework including difference-in-difference method and a series of robust tests, to assess the impacts of the EMZ policy on plants' environmental performance from the dimensions of space and time. The study found that, the EMZ policy did improve the environmental performance of plants inside the zones remarkably, especially in dealing with waste water, waste gas, COD and nitrogen oxygen pollution problems; through the radiation effect, the policy also contributed to the surrounding enterprises outside the zone environmental performance improvement, and the radiation decayed with distance; in the long term, the environmental performance corresponding to some pollutants has been improved; these empirical results remain robust across statistical tests of multi-perspectives. This means that the implementation of rigorous, reasonable environmental protection policy, to achieve green economic development model of high production growth and low pollution, is entirely possible. This study provides a micro level empirical evidence for the effects of regional environmental policy implementation and sheds lights on the effectiveness of place-based environment regulations.

we employed Chinese listed companies during period of 2009-2014 as samples, from perspective of information effect and reputation insurance effect respectively examining the relationship between corporate social responsibility disclosure and stock price crash risk. We find that with disclosing of corporate social responsibility, the stock price crash risk will obviously decrease. Analysis to effects channel suggests that corporate social responsibility disclosure through both information resources effect and reputation capital effect decrease stock price crash risk, but reputation capital effect plays a dominant role. After the problems such as the nature of being internal has been controlled, the above-mentioned conclusion is still correct. Further test show that voluntary disclosure of corporate social responsibility has a more significant restraint to the stock price crash risk when compared to mandatory disclosure,and the relationship is still exist when it turns to an illegal situation.Our findings enrich the formation mechanism and analysis paradigm of the stock price crash risk,which not only provide new evidences to prevent crash risk,it also has an important significance of understanding the economic consequences of corporate social responsibility disclosure.

This paper analyzes the influence of the companies’ trading mechanism in the new third board transferring from negotiating transfer to market making transfer on stock liquidity and securities values. The results show that, compared with the matched group, the stock liquidity of the treatment group that has changed their trading mechanism is higher; there is a positive average cumulative abnormal return around the event day in the treatment group, but this phenomenon does not exist in the matched group; the relationship between cumulative abnormal return and the change of stock liquidity is positive, and this result does not change after controlling the sample-selection bias; the relationship between the change of stock liquidity and the number of market makers is positive, and this result does not change after controlling the sample-selection bias. These results mean that, there are positive effects of market making on stock liquidity and firm value, and we can’t deny these effects when we observe the variation of the total turnover of the new third board. The paper also gives some policy suggestions for the new third board.

This paper investigates the role of past financial performance and technology innovation on IPO pricing in Chinext market. The evidence documented in our study is different from that in the developed markets. We find that the past financial performance is the most important determinant of valuing a firm during both the book building stage and the trading stage. Information on innovation is value relevant only for institutional investors during the book building stage while it is not value relevant in the secondary market.