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Sunday Papers

The Sunday Paper – Board Gender Diversity and Dividend Policy in Chinese Listed Firms

The paper highlighted today is a neat companion to last week’s on the subject of how high status women on company boards in China led to better corporate governance (CG) and less corporate shenanigans. This weeks offering, from Qurat Ul Ain of the Xi’an Jiaotong University (et al.), takes a look at another key indicator […]

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Sunday Papers

The Sunday Paper – Beyond The Glass Ceiling: Informal Gender-Based Status Hierarchy and Corporate Misconduct

Analysis of the effectiveness of women on company boards remains a tangled mess. Some studies show they make no difference to financial outcomes whilst others point out the problems of ‘tokenism’ rendering analysis a flawed proposition from the get go. Researchers of the paper highlighted today wanted to narrow the focus of inquiry to the […]

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Sunday Papers

The Sunday Paper – Artificial Intelligence with American Values and Chinese Characteristics: A Comparative Analysis of American and Chinese Governmental AI Policies

The paper highlighted today from Emmie Hine of the University of Oxford – Oxford Internet Institute and Luciano Floridi of the University of Oxford – Oxford Internet Institute; University of Bologna- Department of Legal Studies, attempts a dissection of policy papers from both China and the U.S. on AI to isolate differences in emphasis and […]

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Sunday Papers

The Sunday Paper – The IMF China Country Report

The latest IMF China Country Report was published on February 4th (the full 84-pager is here IMF China Country Report 220204) and was a generally upbeat summary. It took a closer look at six topics and below I’ve extracted what I think are the key points from each. In the order in which the topics […]

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Sunday Papers

The Sunday Paper – ESG and Investing in China and the United States

What do Milton Friedman and Xi JinPing have in common? They agree that the job of regulating society, for good of course, is something for governments not corporations to busy themselves with. Milton Friedman elaborated on this in the 1970s (see link below) pointing out that if firms concern themselves with social good at the […]

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Sunday Papers

The Sunday Paper – Has Digital Life Improved Residents’ Happiness? — Evidence from China

Social scientists disagree about the relationship between material prosperity and ‘happiness’. It’s an especially lively debate in China where material well being has been on such a persistent upward trajectory. Taking just the prosperity-marker of ‘digital life’ as a specific variable Xiaoqian Zeng from the Jinan University and Fan Zeng of the Shanghai University of […]

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Sunday Papers

The Sunday Paper – Corporate Social Responsibility and Short-Selling: Evidence from China

Lei Gao (et al.) from the George Mason University (Virginia, USA) took a sample of domestically listed Chinese stocks from 2010~2018 and wanted to see if there was a reliable relationship between short-selling activity and their Corporate Social Responsibility (CSR) credentials? As this is a summary and you can read the work in full here […]

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Sunday Papers

The Sunday Paper – The Economic Returns of Siesta: Evidence from China

Post-lunch napping is still big in China. In a study, 94% of college students interviewed confirmed the habit. It wasn’t uncommon in the West but has now all but died out. Even in Western countries famous for the practice its not as common as it once was; but is it a bad thing? The answer […]

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Sunday Papers

The Sunday Paper – Extrapolation in China’s Stock Market: Returns, Price Crash Risk and Price Informativeness

Finance theory assumes investors buy stocks after considering their return potential, which makes sense. In reality they do anything but. In fact, one of the most common reasons for stock purchase, especially among retail investors, is a look back at where a stock’s price has come from. Using a unique database, the EastMoney GUBA forum […]

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Sunday Papers

The Sunday Paper – Capital Market Liberalization and Investment Efficiency: Evidence from China

There are competing theories as to whether letting outsiders into domestic stock markets is a good or a bad thing. On the one hand they bring best practices that assist in a market’s orderly development; but, on the other, they may introduce volatility that results in an undesirable higher long-term cost of capital. Writing in […]

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Sunday Papers

The Sunday Paper – U.S. Housing as a Global Safe Asset: Evidence from China Shocks

How many times do we hear ‘Chinese buyers are pushing up property prices’ in Manhattan, Sydney, Cheju, London or wherever? But is it true? Do flows of money from Chinese buyers really and noticeably affect real-estate prices in certain areas? In the first study of its kind (I’ve seen) to isolate ‘unofficial’ Chinese capital flows […]

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Sunday Papers

The Sunday Paper – What is Behind China’s Dual Circulation Strategy

More monograph than research the highlighted piece today from Alicia García-Herrero, the Asia Pacific Chief Economist for Natixis with affiliations to Bruegel (a Brussels based think-tank) and the Hong Kong University of Science & Technology, is a chilling piece if your business is selling mid/high-tech products to China. It’s only 12-pages so I’d urge a […]

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Sunday Papers

The Sunday Paper – Why the Operating Performance of Post-IPO Firms Decreases: Evidence from China

That companies don’t do as well post-IPO as in their run up is a well documented phenomenon the world over. The reasons for this vary. In the paper highlighted today Hai Long (et al.) from the Business School, Wuchang University of Technology (Wuhan), writing in the Journal of Risk and Financial Management, takes a closer […]

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Sunday Papers

The Sunday Paper – Lost in Translation: Language Barriers to Global Investment

Do Chinese companies that produce Annual Reports in both English and Chinese manipulate the English versions, somewhat, to present themselves in more favorable lights? Yes, some of them, sometimes do. Tina Lang (et al.) from the California State University at East Bay drilled through 262 company reports in both in Chinese and English from 2005~2017 […]

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Sunday Papers

The Sunday Paper – Do Speculators Exacerbate Managerial Myopia? Evidence from Margin Traders in China

Gamestop, Robinhood, meme-stocks, gamification. These terms are associated with just the most recent iteration of the never-ending discussion about whether or not short-term ‘traders’ (hereafter ‘speculators’) are a ‘good’ or a ‘bad’ thing. Analysis in established markets founders on an intractable problem, the lack of a counterfactual. China however may provide a useful case for […]

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Sunday Papers

The Sunday Paper – The Impact of Family-Based Human Capital on Corporate Innovation: Evidence from Sibling-Chairpersons in China

Often, papers I find to highlight involve a lot of quanti-mumble to get to their points which makes the process of summary writing challenging. Not so with today’s piece which couldn’t be clearer. Sumit Agarawal of the Business School at the National University of Singapore (et al.) wanted to see if Chinese firms (I’d wager […]

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Sunday Papers

The Sunday Paper – Techniques for Forecasting Global Conflicts

I kind-of understand what clever folk at Coolabah Capital Investments have done in the paper highlighted today but whether the work has more than party-game interest I’m not sure. You can play with their model yourself and pair up countries to arrive at a) the threat of conflict and b) the possibility of all out […]

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Sunday Papers

The Sunday Paper – Is High-Speed Rail Green? Evidence from a Quasi-Natural Experiment in China

In a working paper for the Fondazione Eni Enrico Mattei (a Milan-based sustainable-development think tank) researchers from Tianjin University ZhongXiang Zhang and Liang Ne have produced the first study on the comprehensive CO2 reduction effects of High Speed Rail (HSR). Previous studies have looked at specific lines with some concluding the CO2 produced in the […]

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Sunday Papers

The Sunday Paper – Investigating Quality Perceptions of Foreign Services by Chinese Consumers

Professor of Marketing at the Indiana University Northwest’s School of Business and Economics Subir Bandyopadhyay takes a closer look at consumer preference for certain foreign products in China. It happens everywhere that consumers make semi-rational quality judgements based on a products’ provenance. Cornish pasties, Idaho potatoes, Belgian chocolates, Colombian coffee, the list of products sold […]

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Sunday Papers

The Sunday Paper – Corruption and CSR: New Evidence from China’s Anti-Corruption Campaign

Corruption and poor Corporate Social Responsibility (CSR) in China, you’d think, went hand in hand, right? Brace! Brace!! Researchers Juncheng Hu and Janice Hollindale from the Bond University (Gold Coast) and Lijuan Zhang from the Australian National University (Canberra) found, in fact, “…evidence that CSR in China is a window-dressing tool to mask corruption.” Moreover […]