Discreet investors exert greater influence on cooperation in the public goods game

This paper studies the evolutionary process of cooperative behavior in a public goods game model with heterogeneous investment strategies in square lattices.In the proposed model,players are divided into defectors,cooperators and discreet investors.Among these,defectors do not participate in investing,discreet investors make heterogeneous investments based on the investment behavior and cooperation value of their neighbors,and cooperators invest equally in each neighbor.In real life,heterogeneous investment is often accompanied by time or economic costs.The discreet investors in this paper pay a certain price to obtain their neighbors'investment behavior and cooperation value,which quantifies the time and economic costs of the heterogeneous investment process.The results of Monte Carlo simulation experiments in this study show that discreet investors can effectively resist the invasion of the defectors,form a stable cooperative group and expand the cooperative advantage in evolution.However,when discreet investors pay too high a price,they lose their strategic advantage.The results in this paper help us understand the role of heterogeneous investment in promoting and maintaining human social cooperation.

Augmented Appeal China is doubling down on attracting foreign investors through broader market access and improved business environment

Attracting foreign capital is a key pillar of China’s reform and opening up policy,and foreign-funded enterprises are an important component of China’s economy.Currently,China is taking steps to further boost its attractiveness as a foreign direct investment(FDI)destination in order to seek more foreign capital.

Inspired by Innovation China’s hi-tech achievements add to its appeal for foreign investors

China’s focus on nurturing new quality productive forces while promoting high-quality development provides foreign investors with enormous market opportunities and vast development prospects,amid rising uncertainties in the global economic landscape.In a series of recent engagements with China,foreign investors,including British businesses,have expressed confidence in the future prospects of the market.

The effect of overseas investors on local market efficiency:evidence from the Shanghai/Shenzhen–Hong Kong Stock Connect

Using a recent stock market liberalization reform policy in China—the Stock Connect—as a quasi-natural experiment,this study examines the effect of stock market liberalization on market efficiency.Employing a dataset of 17,086 Chinese listed firms covering 2009 to 2018,we find that stock market liberalization improves the market efficiency of the Chinese mainland stock market.We further explore the potential channels through which the Stock Connect can enhance the efficiency of the A-share(A-shares refer to shares issued by Chinese companies incorporated in China's Mainland,traded in the Shanghai Stock Exchange and the Shenzhen Stock Exchange.They are denominated in Chinese RMB(the local currency).A-shares were restricted to local Chinese investors before 2003,are open to foreign investors via the Qualified Foreign Institutional Investor,RMB Qualified Foreign Institutional Investor,or the Stock Connect programs.)market.The findings show that liberalizing capital markets could benefit local market efficiency by increasing stock price informational efficiency and improving corporate governance quality.The additional analysis shows that stock market liberalization has a significant and positive impact on local market efficiency,enhancing firm value and reducing stock crash risk.We conduct various robustness checks to corroborate our findings.This study provides important policy implications for emerging countries liberalizing capital markets for foreign investors.

科创板股票价格下跌风险问题研究

科创板的创立成为中国资本市场里程碑式的大事件。科创板旨在补齐我国资本市场服务科技创新的短板,为科技型企业提供了融资渠道和融资平台,但是近年来,很多科创板企业股票发行价格定价过高,股价破发的情况屡见不鲜,科创板股票总体价格不断下跌,根本原因就是市场把融资者和投资者的利益割裂开,股票市场不是零和游戏而是帕累托改进,充分关注投资者利益,可以有效避免科创板股票价格下跌风险。文章首先阐明了股票市场建立的初衷,其次说明了企业的股票发行应该是帕累托改进,接下来指出了科创板成立的意义与下跌风险问题,进而提出了相关的建议,为促进我国科创板市场的稳定与繁荣发展贡献力量。

尊重劳动者与保护投资者

尊重劳动者,提高企业劳动收入份额,是实现社会主义共同富裕的本质要求,它对保护投资者是否同样有利,关系到这项要求能否得到自觉持续响应。以2013年至2022年我国沪深A股上市公司为样本进行研究,发现企业尊重劳动者也有利于保护投资者,当企业所处地区教育发展水平和企业数字化发展水平较高时,这种效应更显著。经过一系列稳健性检验,结论依然成立。进一步研究发现,提高创新投入和缓解投资不足发挥部分中介作用,尊重劳动者与保护投资者的正向关系在国有企业、劳动密集型企业中更显著。研究结论为企业自觉响应国家号召,提高劳动收入份额、保护投资者权益、实现共同富裕提供了有益启示。

Investing in the Future

Foreign investors confident of the Chinese market despite Western media’s“foreign capital leaving China”rhetoric.WHILE the world economy faced multiple challenges and had a slow recovery in 2023,China’s GDP grew by 5.2 percent,surpassing the growth of many leading economies.China’s robust growth and commitment to high-quality development and high-standard opening-up will continue to provide new opportunities for foreign investors.

Enterprise Value Valuation-BYD as an Example Based on SWOT Model and Multiple Regression Model

BYD is one of the largest new energy vehicle companies in China.Analyzing its scenario and the factors that affect its value helps to understand and identify development opportunities and potential problems.On one hand,this paper makes a qualitative analysis of BYD,using SWOT model to study the internal capability and external environment of BYD.On the other hand,the multiple regression model is used for quantitative analysis of BYD’s enterprise value,and the model is established based on three factors:enterprise fundamentals,investor behavior and psychology,and macroeconomic policy uncertainty,and the stepwise regression is carried out.The results show that the increase of institutional investors’shareholding ratio,the increase of investor sentiment index,and the increase of M2 growth rate will increase the overall enterprise value,while the increase of economic policy uncertainty will decrease the enterprise value.

节制资本思维:证券检察民事公益诉讼路径构建

全国首例证券集体诉讼案“康美药业案”折射出新《证券法》第九十五条规定的证券特别代表人诉讼制度的实践困境——对证券中小投资者的保护不足。证券中小投资者合法权益受损会打击投资者信心,增大企业融资难度,影响资本市场发展。基于此,节制资本思维成为证券中小投资者权益保障的底层逻辑,“实践—制度—理论”成为证券中小投资者检察民事公益诉讼的正当性逻辑。今后应以节制资本思维为基础,构建以证券检察民事公益诉讼主体二元化、投资者“默示加入、明示退出”诉讼原则、科学设置损害赔偿金的计算及分配方式、降低投资者诉讼成本、拓展检察机关派驻证监机关检察机构职能为框架的证券检察民事公益诉讼路径。

The chaotic behavior among the oil prices, expectation of investors and stock returns: TAR-TR-GARCH copula and TAR-TR-TGARCH copula

This paper has two aims. The first one is to investigate the existence of chaotic structures in the oil prices, expectations of investors and stock returns by combining the Lyapunov exponent and Kolmogorov entropy, and the second one is to analyze the dependence behavior of oil prices, expectations of investors and stock returns from January 02, 1990, to June06, 2017. Lyapunov exponents and Kolmogorov entropy determined that the oil price and the stock return series exhibited chaotic behavior. TAR-TR-GARCH and TAR-TR-TGARCH copula methods were applied to study the co-movement among the selected variables. The results showed significant evidence of nonlinear tail dependence between the volatility of the oil prices, the expectations of investors and the stock returns. Further, upper and lower tail dependence and comovement between the analyzed series could not be rejected. Moreover, the TAR-TR-GARCH and TAR-TR-TGARCH copula methods revealed that the volatility of oil price had crucial effects on the stock returns and on the expectations of investors in the long run.

Investor sentiments and stock marketsduring the COVID-19 pandemic

This study examines the relationship between positive and negative investor sentiments and stock market returns and volatility in Group of 20 countries using variousmethods, including panel regression with fixed effects, panel quantile regressions, apanel vector autoregression (PVAR) model, and country-specific regressions. We proxyfor negative and positive investor sentiments using the Google Search Volume Indexfor terms related to the coronavirus disease (COVID-19) and COVID-19 vaccine, respectively. Using weekly data from March 2020 to May 2021, we document significantrelationships between positive and negative investor sentiments and stock marketreturns and volatility. Specifically, an increase in positive investor sentiment leads toan increase in stock returns while negative investor sentiment decreases stock returnsat lower quantiles. The effect of investor sentiment on volatility is consistent acrossthe distribution: negative sentiment increases volatility, whereas positive sentimentreduces volatility. These results are robust as they are corroborated by Granger causalitytests and a PVAR model. The findings may have portfolio implications as they indicatethat proxies for positive and negative investor sentiments seem to be good predictorsof stock returns and volatility during the pandemic.

Does investor protection affect the choice of earnings management methods through real activity manipulation and accrual manipulation？ Asian comparison

This paper examines systematic differences in earnings management through real activity manipulation and accrual manipulation across 7 Asia countries. The study proposes arguments that in economies with high investor protection, managers prefer to manage earnings through real activity manipulation rather than through accrual manipulation because accrual manipulation is more likely to draw auditors or regulators scrutiny than real decisions about pricing and production. The study findings are consistent with prediction. Despite being in economies with high investor protection, managers still have bigger discretion in managing earnings through real activities rather than accrual manipulation.

Realizing profits immediately:disposition effect of open-end fund investors in China

This paper explores the disposition effect, the tendency of investors to hold losing investments too long and sell winning investments too soon, by analyzing a unique data set that consists of the buying and selling positions of open-end fund investors in China. Results show that investors' buying and selling behaviors are significantly affected by fund performance. The reasons that lie behind such results are mainly related to the non-persistence of fund performance. When fund performance is non-persistent, investors are not clear about the future returns on funds. So, investors, especially individual investors, would have to realize the profits on hand immediately. Meanwhile, fund investors are highly sensitive to fund age and loading fees, but not sensitive to management fees charged by funds when they buy or sell fund shares.

Investor Protection, Deviation of Local Accounting Standards From IFRS, and the Effectiveness of the IFRS Adoption

The objective of this study is to examine the effect of accounting standards and investor protection on value relevance of earnings and book value of equity among European Union countries during the years 1999-2007. The results indicate that the adoption of International Financial Reporting Standards [IFRS] leads to improvement in value relevance, particularly on earnings. We also examine the impact of investor protection and the deviation of local accounting standards from IFRS on the effectiveness of the IFRS adoption. The results show supporting evidence for investor protection but inconclusive evidence for accounting standard deviation. However, additional analysis indicates that the countries which apparently benefit from adopting IFRS are those with high deviation of local accounting standards from IFRS and high investor protection. The findings imply that adopting IFRS alone cannot improve value relevance of accounting information, but standard setters and regulators need to strengthen their investor protection mechanisms in order to improve the quality of accounting information.

Investor Sentiment and Cross-Sectional Return after Share Issuance:Evidence from Seasonal Equity Offering in China Market

Our research on private placement of equity on China capital market reveals that firms prefer to equity financing when their stock price is overvalued and investor sentiment is high,following the market timing hypothesis.However,after private issuance,we document a significant positive abnormal return within three years.We believe firms choose to polish their financial statement before the exit of institutional investors and controlling shareholders.Through manipulation of discretional accruals,firms improve the profitability and market valuation,and help institutional investors and controlling shareholders obtain the abnormal return after private placement of equity.Nevertheless,such manipulation cannot be sustained and will do harm to other investors in the long-term.

Investor Attention,Analyst Optimism,and Stock Price Crash Risk

This paper used the A-shares listed companies in China as samples,constructed a comprehensive indicator of investor attention,and conducted an empirical analysis on the correlations among investor attention,analyst optimism,and stock price crash risk.The results indicated that investor attention aggravates the stock price crash risk and has a positive effect on analyst optimism.Meanwhile,the analyst optimism plays a mediating role in the positive correlation between investor attention and stock price crash risk.In addition to that,institutional investor attention also has direct and indirect effects on the crash risk.

How to avoid reputation damage in financial restatement? The role of investor relations management

In order to examine the effects of avoiding reputation damage by investor relations management under certain corporate governance structures and mechanisms, samples of 1120 listed companies are used to research the influence on financial restatements by corporate governance. Then the moderating effects of investor relations management on financial restatements are analyzed. The result is that the more dispersed the equity, the higher the probability of financial restatements will be (This includes the government-controlled companies). Also the higher the proportion of independent directors and the higher the level of investor relations management, the lower the probability of financial restatements will be. Furthermore, as a moderating variable, investor relations management can eliminate the negative effects of corporate governance, enhance the effect of independent directors and reduce the probability of financial restatement.

An empirical examination of investor sentiment and stock market volatility: evidence from India

Understanding the irrational sentiments of the market participants is necessary for making good investment decisions.Despite the recent academic effort to examine the role of investors’sentiments in market dynamics,there is a lack of consensus in delineating the structural aspect of market sentiments.This research is an attempt to address this gap.The study explores the role of irrational investors’sentiments in determining stock market volatility.By employing monthly data on market-related implicit indices,we constructed an irrational sentiment index using principal component analysis.This sentiment index was modelled in the GARCH and Granger causality framework to analyse its contribution to volatility.The results showed that irrational sentiment significantly causes excess market volatility.Moreover,the study indicates that the asymmetrical aspects of an inefficient market contribute to excess volatility and returns.The findings are crucial for retail investors as well as portfolio managers seeking to make an optimum portfolio to maximise profits.

CCPIT Encourages More Chinese Investors to Go Abroad

The 8th Chinese Enterprises Outbound Investment Con-ference was held in Beijing by China Council of the Promo-tion of International Trade(CCPIT)from April 16th to 17th.The CCPIT has been organising the conference for eight years,to encourage more

Investor Protection,Ownership Structure and Corporate Valuation

The purpose of this paper is to investigate the relationship between investor protection, ownership structure and corporate valuation. La Porta showed that there existed a simple linear relationship between corporate valuation and the holding percentage of controlling shareholders. But recent empirical evidence does not support it. A nonlinear relationship is proved between ownership structure and corporate valuaton by relaxing the assumption of La Porta＇s model in this paper. There exists a positive relation between investor protection and corporate valuation. Our empirical research shows that this relation is significantly positive indeed.