Promote Global Financial Market Integration

The B20 finance-driven growth taskforce provided four policy recommendations,including the optimization of global financial supervision,supporting stable growth of the world economy,the promotion of the development of green finance,and the pro-

Strengthening Standardized Construction of Bank Card,Integrating with International Financial Circles

Following the accession to the WTO of China,bank card industry faces new competition pressure and challenges. At present, the most outstanding problem we face is, how to narrow the gap of development between the international bank card industry and that of China and keep up with fast-developing paces of international bank card as soon as possible. Objectively speaking, bank card industry of our country is still at the initial stage.

Business and financial information integration and voluntary management earnings forecasts

In this study,the impact of business and financial information integration(BFⅡ)on the voluntary management earnings forecasts(VMEFs)of listed firms in China between 2008 and 2018 is investigated.Drawing on litigation cost and ability signaling theories,we find that the adoption of BFⅡencourages top managers to disclose VMEFs.BFⅡfirms are identified through the textual analysis of management discussion and analysis(MD&A)reports,and the empirical results indicate that BFⅡfirms have a higher probability and frequency of issuing VMEFs than non-BFⅡfirms.The results remain robust after we identify causality by applying a propensity score matching and difference-in-differences(PSM-DID)test and use an alternate measure of BFⅡ.Further tests show that BFⅡfirms issue more accurate VMEFs and are able to issue them at an earlier stage.We also find that the positive relationship between BFⅡand VMEFs is weakened if the media expresses concern about the uncertainty of BFⅡadoption.

Estimating the shareholder's terminal payoff based on insurer's solvency ratio in mixed fractional Brownian market

This paper studies the insurer’s solvency ratio model in a class of mixed fractional Brownian motion(MFBM) market, where the prices of assets follow a Wick-It? stochastic differential equation driven by the MFBM, by the method of the stochastic calculus of the MFBM and the pricing formula of European call option for the MFBM, the explicit formula for the expected present value of shareholders’ terminal payoff is given. The model extends the existing results.

The global financial crisis and its transmission to Asia Pacific

By virtue of the US markets closing later than Asia-Pacific(AP)markets,returns observed in the US include information not reflected in AP until the next day.Provided there is enough integration among markets,this asymmetry should then generate Granger causality from the US returns towards returns in the AP region.It is thus obvious that when testing for Granger causality among the Western and AP markets,interdependence due to non-synchronicity should be clearly identified and factored out.Our novel method is to measure contagion,usually defined as excessive market integration during crises,as excess interdependence beyond the non-synchronicity induced.We test for contagion of the 2008 Financial Crisis from the US to AP.The unmistakable emergence of a new cointegration relation that intertwines the US and AP markets only during the crisis,but not before,presents evidence of long-run contagion,that is a new channel that transmits crisis-related info.We find strong contagion from US to Korea,no contagion to Hong Kong,and Australia is a mixed case.Our explanation is that the Korean economy is the most vulnerable due to its export orientation,Hong Kong becomes disentangled due to its relation to China,which is consistent with the theory of‘decoupling’of China,and the Australian case is somewhere in the middle,probably due to its close ties to the US but also its strong reliance on natural resources and gold.