Content of Modern Finance in our journal

Published in last 1 year |  In last 2 years |  In last 3 years |  All Please wait a minute... For Selected: Download Citations EndNote Ris BibTeX Toggle Thumbnails Select The Innovation Spillover Effect from Science and Technology Finance Policy: Evidences from the Supplier-Customer Relationship CAO Ting-qiu, PENG Wen-hao Contemporary Finance & Economics    2024, 0 (10): 59-72.   Abstract （36）            Knowledge map    Save The financial policy of science and technology is a significant instrument for advancing an innovation-driven development strategy. However, the existing studies have primarily concentrated on the direct impact of the policy on innovation while overlooking the potential for indirect innovation spillovers. The “Pilot Policy of Promoting the Integration of Science, Technology and Finance” implemented by the Ministry of Science and Technology and five other departments in two batches is employed by this study as a quasi-natural experiment to investigate the innovation spillover effect of the science and technology finance policy and its spillover channels with a multi-period difference-in-difference method on the basis of the supply chain data of China’s A-share listed companies from 2009 to 2022. The results indicate that the pilot policy has innovation spillover effect and that the innovation level of suppliers in the non-pilot regions has been significantly enhanced. The spillover channel analysis demonstrates that the innovation effect of the pilot policy is transmitted from customers to suppliers through two main channels: the knowledge spillover channel and the demand-pull channel. Further research indicates that the innovation spillover effects of the pilot policy are more pronounced in the samples with higher switching costs for customers, superior absorption and transformation capacity for suppliers, robust intellectual property protection, and close proximity between suppliers and customers. Consequently, the government should further enhance and promote the pilot policy and enhance the innovation spillover effect of the policy by reinforcing the protection of intellectual property rights and encouraging collaborative innovation among enterprises, so as to improve the quality and efficacy of financial services for science and technology innovation. Reference | Related Articles | Metrics | Comments（0） Select Supply Chain Network Relationship and Trade Credit Supply: From the Perspective of Structural Hole YUAN Ye-hu, WU Duan-duan Contemporary Finance & Economics    2024, 0 (10): 73-85.   Abstract （28）            Knowledge map    Save Supply chain network is an important social network for enterprises, which has an important impact on promoting the overall coordinated development of supply chain. Taking China’ A-share listed enterprises from 2012 to 2022 as the research samples, this paper explores the influence of business supply chain network relationship on their commercial credit supply and its acting mechanism from the perspective of structure hole. The results show that enterprises with rich supply chain network structure holes can significantly improve the supply of commercial credit and optimize the structure of commercial credit supply. This is because enterprises occupying the position of supply chain network structural holes can ease financing constraints to enhance the supply capacity of business credit, and enhance the risk-taking ability of enterprises to enhance supply willingness, thus improving the supply of commercial credit. Among the enterprises in regions with lower economic policy uncertainty and higher marketization process, the enterprises with better supply chain stability and closer geographical distance of supply chain, as well as the non-state-owned enterprises and the enterprises at growth stage, occupying the position of abundant supply chain network structure holes has a more significant impact on their commercial credit supply. Therefore, enterprises should attach importance to the embedded supply chain network relationship, make rational decisions of commercial credit supply, build a cooperative and win-win supply chain system, and promote the coordinated development of supply chain. Reference | Related Articles | Metrics | Comments（0） Select Unanticipated Monetary Policy and Financial Cycle: A Study Based on Fixed Spread and Floating Spread CHEN Cai-hong, AN Qi, OUYANG Zhi-gang, ZHANG Ji-qiang Contemporary Finance & Economics    2024, 0 (9): 57-71.   Abstract （31）            Knowledge map    Save Financial cycle plays a crucial role in the regulation of monetary policy. Accurately identifying China's unexpected monetary policy and exploring the relationship between unexpected monetary policy and financial cycle can provide new ideas for monetary policy reform, which is also conducive to the optimization of monetary policy and the healthy development of the financial system. By making use of the characteristics of the spread changes between fixed rate bonds and floating rate bonds before and after the monetary policy announcements, this paper identifies China's unexpected monetary policy with the Proxy SVAR model. Then based on this, it explores the impact of the unexpected monetary policy on the financial cycle. The findings of the empirical study show that an unexpected monetary policy shock that increases the broad money supply by one standard deviation will lead to a 0.06% rise in the financial cycle, that the explanatory power of unexpected monetary policy shocks on financial cycle fluctuations is about 30%, that the impact of unexpected monetary policy on the financial cycle will be realized through financing and expected channels, and that the current monetary policy regulation presents the characteristics of counter-cyclical and cross cyclical regulation of the financial cycle. Therefore, the People's Bank of China should further improve the early warning management mechanism, pay close attention to the changes in the financial cycle, improve the counter-cyclical and cross-cyclical adjustment of monetary policy, optimize the communication and coordination capacity, and promote the virtuous circle of financial stability and stable economic development. Reference | Related Articles | Metrics | Comments（0） Select Reform of the Administrative Approval System and Corporate ESG Performance: An Exploration of A Market-Oriented Governance Mechanism FU Wen-ji, LI Qing-yuan, LAN Sen Contemporary Finance & Economics    2024, 0 (9): 72-84.   Abstract （33）            Knowledge map    Save Improving the ESG performance of enterprises is an important part of achieving the goals of“double carbon”and the sustainable development of the economy and society. This paper conducts a quasi-natural experiment to analyze the impact of the reform of the administrative licensing system on the ESG (environment, society and governance) performance of enterprises based on the establishment of regional administrative licensing centers (ALCs). The findings of the empirical study show that the reform of the administrative approval system can improve the ESG performance of enterprises. In terms of its working path, the reform of the administrative approval system mainly enhances corporate ESG performance by inhibiting management short-sightedness, reducing institutional transaction costs, and intensifying market competition. The heterogeneity test reveals that the effect of the reform of the approval system on improving the ESG performance of enterprises is more significant in private enterprises, enterprises with a higher entrepreneurial spirit, and enterprises in regions with a poorer relation between the government and market. From the perspective of market investors and supply chain relationships, the reform of the administrative approval system not only improves the ESG performance of enterprises but also helps to enhance their operational efficiency and the ability to obtain commercial credit. Therefore, China's ESG governance practices should continue to move towards the market-oriented reform, improve the market-based allocation system of factors of production, and give full play to the decisive role of the market in resource allocation. Reference | Related Articles | Metrics | Comments（0） Select A Research on the Measurement and Evolution of City Commercial Banks’ Implicit Guarantee in China LI Yi-hua, ZHU Jie Contemporary Finance & Economics    2024, 0 (8): 59-71.   Abstract （67）            Knowledge map    Save It is an important aspect of preventing and controlling financial risks and improving the efficiency of fund allocation to accurately identify the implicit guarantee of city commercial banks. Based on the data of inter-bank deposits issued by Chinese city commercial banks from 2014 to 2021, this paper uses the interest rate difference method and the dummy variable method to measure the implicit guarantee level of city commercial banks, and analyzes the evolution of the implicit guarantee of city commercial banks in combination with the bankruptcy event of Baoshang Bank in 2019. The results show that the implicit guarantee can reduce the financing cost of city commercial banks by about 60%. The distribution of the implicit guarantee of city commercial banks is negatively correlated with the rating of city commercial banks and positively correlated with the local government fiscal resources, that is, the lower the rating and the higher the local government fiscal resources, the higher the implicit guarantee level will be. The mechanism analysis reveals that the formation mechanism of implicit guarantee mainly depends on the risks of city commercial banks and the ability and willingness of local government to guarantee. After the bankruptcy event of Baoshang Bank, the implicit guarantee of city commercial banks has been significantly weakened, and this impact is different due to the government’s willingness and ability to guarantee and the different risks of city commercial banks. Therefore, it is suggested that city commercial banks should strengthen the construction of risk early warning system, actively introduce strategic investors and optimize equity structure. It is also suggested that the government departments should optimize the credit rating of city commercial banks and strengthen the role of the third-party institutions in information disclosure. Reference | Related Articles | Metrics | Comments（0） Select Research on Macro-Prudential Policies, Financial Frictions, and Government Expenditure Multipliers LI Xiao-sheng, SONG Ma-lin Contemporary Finance & Economics    2024, 0 (8): 72-84.   Abstract （48）            Knowledge map    Save The macro-prudential fiscal policy can effectively reduce the fiscal footprint of monetary policy, which is playing a crucial role in controlling debt growth and ensuring economic security. On the basis of establishing a dynamic stochastic general equilibrium model for an open economy, this paper explores the issue of government expenditure multiplier by introducing a macro prudential fiscal policy framework and financial friction factors. The findings show that: firstly, the government expenditure multipliers under the framework of macro-prudential policies is bigger than that without government expenditure multipliers. When only considering the government department debt, the government expenditure multipliers under the framework of macro-prudential policies is the biggest, while the welfare losses are minimized; when the debt of both households and government departments are considered, the government expenditure multiplier under the macro prudential policy framework is smaller than that under the benchmark model. Secondly, under the macro-prudential policy framework, the government expenditure multiplier is smaller under a floating exchange rate system than under a fixed exchange rate system, which is in line with the classical macroeconomic theory. Thirdly, the government expenditure multiplier under financial friction is larger than that without considering financial friction. Given the positive role of macro-prudential policies in controlling debt risks and leveraging the multiplier effect of government spending, it is recommended that government departments introduce macro-prudential policies in the field of fiscal policy. Reference | Related Articles | Metrics | Comments（0） Select Finance Serving the Development of New Quality Productivity: Historical Experience and Inspirations for China HE Qing, HU Tong, LIANG Bai-lin Contemporary Finance & Economics    2024, 0 (7): 59-70.   Abstract （46）            Knowledge map    Save The new quality productivity is an advanced form of productivity that meets the needs of high-quality development, and giving full play to the functions of finance is a major requirement for the development of new quality productivity. The historical experiences of the three industrial revolutions show that there is a mutually reinforcing relationship between finance, economic growth and productivity progress. On the one hand, finance can provide high-quality services to promote economic growth. Economic growth forms the driving force for productivity progress at the demand side; in return, productivity progress may bring improvements in economic quality and quantity at the supply side. On the other hand, finance can provide fund support for productivity progress through banks and capital markets, while productivity progress in turn can provide good returns for finance. At the same time, finance is a double-edged sword. Multiple financial crises in history have caused damage to productivity, indicating that strengthening financial regulation is a guarantee for promoting a virtuous cycle of finance, economic growth, and productivity progress. Therefore, the development of the new quality productivity in financial services not only needs to improve the quality and efficiency of financial services for the real economy, but also needs to improve financial regulation and maintain the bottom line of preventing systemic financial risks. To be specific, firstly, we need to build a financial system that places equal emphasis on banks and capital markets to provide high-quality financial services for the development of the new quality productivity. Secondly, we must improve the capital entry and exit mechanism and form a virtuous cycle of financial capital investment and the development of the new quality productivity. Finally, the“five major financial articles”must be completed to serve the advancement of the new quality productivity and implement the new development concepts. Reference | Related Articles | Metrics | Comments（0） Select Fire Sale, Systemic Risk and Banking System Stability ZHAO Ye-xiang, ZHOU Ai-min Contemporary Finance & Economics    2024, 0 (7): 71-87.   Abstract （26）            Knowledge map    Save Clarifying the contagious path of systemic risks and the influencing factors on the banking system stability under the fire sale is of great significance for maintaining national financial security. Based on regulatory constraints and individual rationality, this paper establishes a Multi-Distribution Fire-Sale model (MD-FS) to unify external shocks, fire sale, systemic risks, and system stability into the same theoretical framework. It also investigates the micro generation mechanism of systemic risks and the factors influencing system stability in China’s banking industry with the data of the balance sheet of China’s banking industry from 2007 to 2021. The findings show that, firstly, the sensitivity of China’s banking industry to the fire sale is significantly different under heterogeneous external shocks. Among them, the response to the fire sale under small shocks is rapid, while the response to the fire sale under large shocks is slow. Secondly, the generation mechanism of the banking systemic risks exhibits consistency under heterogeneous shocks. The external shocks are the trigger for the fire sale, while the direct fire-sale losses and the fire-sale contagion losses are the main components of the systemic risks. Thirdly, financial upward clustering, financial downward clustering, and bank capital have a significant impact on the stability of the banking system, and their interaction determines the stability of the banking system. Therefore, the regulatory authorities need to further establish a dynamic pressure system, encourage differentiated banking operations, enhance capital retention, and reasonably guide the fire-sale expectation of banks, thereby enhancing the stability of the banking system and maintaining national financial security. Reference | Related Articles | Metrics | Comments（0） Select Does the Matthew Effect Exist in Bank Digital Transformation: From the Perspective of Business Performance XIONG Jian, LI Chao-wei Contemporary Finance & Economics    2024, 0 (6): 57-70.   Abstract （96）            Knowledge map    Save Digital transformation is an inevitable choice for banks’ high-quality growth, but it can also trigger a series of inequalities. By making use of the data of 208 commercial banks in China from 2010 to 2021, this paper examines the Matthew effect and its intrinsic mechanism in the bank digital transformation from the perspective of business performance. The results show that the relationship between bank digital transformation and business performance manifests itself first as the digital paradox and then as the financial enhancement, with an overall U-curve relationship. There is a clear Matthew effect in the digital transformation of large and small banks. As banks increase in size, the turning point of the U-shaped curve of the relationship between digital transformation and business performance shifts to the left, indicating that large-scale banks require lower degree digital transformation to achieve financial enhancement compared to small-scale banks. The mechanism analysis shows that bank digital transformation has an inverted U-shaped and U-shaped relationship with operating costs and operating revenues respectively, and the turning point of the curves shift to the left as the size of the bank increases, leading to a nonlinear impact of bank digital transformation on business performance and the Matthew effect in the digital transformation of large and small banks. Further discussion reveals that the Matthew effect of bank digital transformation is also reflected at the level of operational risks. Compared to small-scale banks, digital transformation is more beneficial for large-scale banks to reduce operational risks. Therefore, it is recommended that while accelerating the digital transformation of banks, we should focus on mitigating the Matthew effect, fully release the dividends of digital development, and improve the quality and efficiency of financial services to the real economy. Reference | Related Articles | Metrics | Comments（0） Select CVC Accelerating the Coupling Development of Industrial Chain and Innovative Chain: Theoretical Basis and Empirical Evidences ZHANG Rao, ZHANG Yue, GUO Xiao-xu Contemporary Finance & Economics    2024, 0 (6): 71-83.   Abstract （57）            Knowledge map    Save The coupling relationship between industrial chain and innovation chain has received increasing attention in academic researches. Based on the 2008-2022 dataset of Corporate Venture Capital (CVC) in China, this paper explores the potential functions of CVC in promoting the coupling development of industrial chains and innovative chains. By employing the entropy evaluation method and a coupling coordination degree model, this paper analyzes the spatiotemporal evolution and the distribution of the integration of the dual chains across provinces. The findings show that the coupling coordination degree has been increasing gradually year by year, but the regional development is imbalanced, showing a declining trend from the east to the central then to the west. The empirical tests reveal that CVC plays a positive promotion effect on the coupling development of the dual chains by alleviating financing constraints, attracting talent concentration and optimizing industrial structures. Further analysis reveals that there exists a significant threshold effect of CVC, when the inflow of the amounts of funds on deposit and the level of economic development reach a certain threshold, the function of CVC to promote the chain coupling is gradually apparent. As the volume of capital and economic development levels continue to rise, the empowering effect of CVC becomes more prominent. Meanwhile, CVC has a regional heterogeneous effect on the coupling of the dual chains, and this effect is more significant in the eastern region compared with the central and western regions. Therefore, it is suggested to increase support for CVC at both the national and regional levels, let science play a positive role in CVC, encourage cross regional entrepreneurial investment and promote coordinated development between different regions, emphasize the role of enterprises, promote the integration of innovative elements and the transformation of scientific and technological achievements, and provide strong support for the efficient coupling of the dual chain. Reference | Related Articles | Metrics | Comments（0） Select Banking Fintech, Economic Policy Uncertainty and Corporate Investment Behavior FENG Yong-qi, CAO Yue Contemporary Finance & Economics    2024, 0 (5): 58-72.   Abstract （75）            Knowledge map    Save At present, uncertainty has become normal, and the role of banking fintech empowering the development of the real economy is more and more significant. In theory, banking fintech has the function of optimizing the allocation of financial resources and alleviating the negative impact of economic policy uncertainty on enterprises. Based on the data of banking fintech patents and corporate loans from 2013 to 2022 in China, this paper explores how banking fintech adjusts the inhibitory effect of economic policy uncertainty on corporate real investment. The findings show that, firstly, banking fintech could significantly alleviate the inhibitory impact of economic policy uncertainty on corporate investment, and this effect is more significant in the state-owned enterprises and the enterprises with lower digitalization levels or lower financial risks. Secondly, banking fintech primarily exerts a mitigating effect by reducing financial frictions and by decreasing the option waiting value. Thirdly, banking fintech could weaken the negative effect of the economic policy uncertainty on corporate financialization, and further enhance the level of corporate social responsibility bearing. Therefore, the government and the banking sector should actively promote the development of fintech, enhance the banking sector's ability to provide personalized services to enterprises, strengthen the integration of fintech with the real economy, and improve the regulatory system and the risk prevention system. Reference | Related Articles | Metrics | Comments（0） Select Banking Fintech, Lending Distance and Banking Competition: From the Perspective of Credit Diversification FENG Jue, WANG Ying-dong, CHEN Meng-jie Contemporary Finance & Economics    2024, 0 (5): 73-85.   Abstract （69）            Knowledge map    Save Fintech has produced far-reaching changes in the banking business model and has become the key for banks to break through the competition in the credit market. By making use of the data of banking fintech patents, the data of listed company borrowing, and the geographic information of commercial banks from 2013 to 2021, this paper systematically assesses the effect of fintech development on real banking competition and its mechanism. The findings show that banking fintech has significantly intensified the banking competition and expanded the diversified access for enterprises to get credit. The mechanism analysis shows that banking fintech has intensified the banking competition by expanding the lending distance between banks and enterprises, and this mechanism is more significant in areas with scarce financial resources, which helps to improve the fairness of financial services. The heterogeneity analysis shows that the positive effect of banking fintech on banking competition is more pronounced among firms with higher financing constraints, insufficient market attention, or leading digital transformation, which has effectively improved the allocation efficiency of credit resources. Further analysis reveals that the development of fintech can contribute to the improvement of the competitive environment of the credit market for different types of banks. Therefore, attention should be paid to the impact of the enabling effect of fintech on banking competition, and the development of banking fintech should be standardized and steadily promoted. At the same time, financial supervision should be strengthened to prevent disorderly competition, so as to continue to assist the high-quality development of enterprises. Reference | Related Articles | Metrics | Comments（0） Select Has the Implementation of the New Securities Law Improved the Information Environment of the Capital Market? An Interpretation Based on the Accuracy of Analysts’ Earnings Forecasts ZHANG Yan Contemporary Finance & Economics    2024, 0 (4): 58-70.   Abstract （70）            Knowledge map    Save The Securities Law, revised in 2019, has significantly increased the degree of punishment and deterrence of violations against laws and regulations. Taking A-share listed companies from 2016 to 2021 as samples, this paper tests the impact of the implementation of the new Securities Law on the accuracy of analysts’ earnings forecasts with the difference-in-differences method. The findings show that after the implementation of the new Securities Law, the accuracy of analysts’ predictions in the companies with weaker quality of information disclosure has greatly improved. In terms of economic significance, the range amounted to 39% of the mean value of analysts’ forecast deviations. After a series of endogeneity and robustness tests, these conclusions still stand. The mechanism analysis shows that the implementation of the new Securities Law improves analysts’ forecast accuracy by means of increasing the quality of corporate information disclosure rather than reducing the level of corporate risk-taking. The heterogeneity test reveals that after the implementation of the new Securities Law the improvement effect of analysts’ forecast accuracy is more significant in the state-owned enterprises, the enterprises with high goodwill, and those with less product market competition. This research conclusion reveals the spill-over effect of law amendments on other market participants. Therefore, the government should further improve the information environment of the capital market, and analysts should increase their attention to the enterprises with lower information disclosure quality. Reference | Related Articles | Metrics | Comments（0） Select Inflation Expectations and Corporate M&A and Reorganization: Synergistic Effect or Market Value Management? FANG Pei-jie, ZHU Si-yuan Contemporary Finance & Economics    2024, 0 (4): 71-84.   Abstract （87）            Knowledge map    Save M&A and reorganization serve as catalysts for corporate development and the adjustment of the national economic structure. Against the backdrop of rising global inflation, the impact of inflation on the mergers and acquisitions of Chinese companies is worth paying attention to. Based on the anticipated shifts in inflation from 2007 to 2021 and the M&A behaviors of non-financial companies listed on the A-share market in China, this paper conducts an empirical study. The findings reveal the following: firstly, when the inflation expectations increase, corporate equity will be undervalued due to the impact of inflation illusion on the investors, prompting firms to initiate M&A transactions to restore valuation; secondly, at times when inflation expectations are heightened, enterprises predominantly engage in non-industrial rather than industrial M&As. Although the frequency of initiated M&A deals escalates, the probability of their achievements decreases. After the M&A deals, the market performance somewhat shows improvements, whereas the operational performance experiences a decline. There is an increased likelihood of goodwill impairment charges within three years, suggesting that enterprises are primarily driven by market value management motives instead of the pursuit of synergistic effects when undertaking M&As; thirdly, for companies involved in the Shanghai-Hong Kong Stock Connect and those with higher margin debt balances, the managerial opportunism is mitigated, the inflation illusion of investors is ameliorated, and the propensity to commence M&A transactions based on market value management incentives is reduced. Therefore, to propel high-quality development through corporate M&A activities, it is imperative to optimize expectation management, minimize informational asymmetries, advance the orderly opening of capital markets, refine short-selling mechanisms, and steer M&A activities towards the direction of industrial upgrading through regulatory guidance. Reference | Related Articles | Metrics | Comments（0） Select A Study of the Macroeconomic Effect and Predictive Ability of the Term Structure of China’s National Bond Interest Rate SUN Chen-tong, DANG Yin, MIAO Zi-qing Contemporary Finance & Economics    2024, 0 (3): 56-69.   Abstract （138）            Knowledge map    Save The correlation and leading relationship between the yield curve of China’s national bonds and the macroeconomic indicators have received widespread attention from macro-control and financial markets, of which the nonlinear and time-frequency characteristics are waiting for extended researches. Based on the yield curve data of the national bonds from 2006 to 2022, this paper employs a dynamic NS model to study the fitting term structure of national bond interest rate. The findings show that the term structure of national bond interest rate presents certain cyclical fluctuation characteristics. With the extension of maturity, the yield curve shows a gradual convergence trend. The quantile vector auto regression model is utilized to study the nonlinear impact of the term structure of the national bond interest rate on the macroeconomic indicators under different economic levels, it is found that the level factor and slope factor of the national bond yield rate mainly have negative effects on output and inflation. When the macro-economy is at different levels, this negative effect has nonlinear characteristics, which is especially greater in the periods of high economic growth and high inflation. The wavelet phase spectrum method is used to explore the dynamic changes of the forecasting ability of the term structure of national bond interest rate to the macroeconomic indicators in the time-frequency dimension. It is found that the horizontal factor and the slope factor have stronger forecasting ability to output, while the forecasting ability to inflation has weakened after 2019. Therefore, in the future, the construction of the national bond market should be promoted, the monitoring of the term structure of the national bond yield rates should be strengthened, and the fiscal and monetary policies should be optimized. Reference | Related Articles | Metrics | Comments（0） Select Market Valuation Effect of Enterprises’ Emission Reduction Commitments: Empowerment or Negative Empowerment CHENG Hong-wei, FENG Yi Contemporary Finance & Economics    2024, 0 (3): 70-82.   Abstract （82）            Knowledge map    Save Enterprises are the main body of action to achieve the goal of carbon peak and carbon neutrality, and the emission reduction commitment provides an important reference for investors to observe the future emission reduction situation of enterprises. However, the existing studies mainly focus on the historically disclosed information, such as ESG and CSR, ignoring the impact of forward-looking information such as emission reduction commitment on enterprise evaluation. Based on this, the relationship between emission reduction commitment and stock return is investigated by taking Chinese enterprises that publicly disclosed questionnaires in CDP as samples. The results show that enterprises’ emission reduction commitments can effectively reduce the stock return required by investors, and reveal the enabling effect of emission reduction commitment on market valuation. The analysis of the mechanism and heterogeneity reveals that the emission reduction commitment can affect stock returns by providing future incremental information, alleviating information asymmetry and reducing corporate risks. And the degree of the impact varied with the intensity of regional environmental regulations, the level of corporate carbon emissions and the confidence level of such commitments. Further study reveals that the emission reduction commitments of enterprises have industrial spillover effects, which can significantly improve the level of information disclosure of the emission reduction commitment of the competitors in the same industry. The analysis of the economic consequences reveals that the emission reduction commitment can not only effectively constrain the subsequent emission reduction behavior of enterprises, but also help to expand the scale of subsequent equity financing with the reduced capital costs brought about by the emission reduction commitment. Therefore, the management should actively disclose the emission reduction commitment, so as to keep its word and keep its promise. The government departments should also standardize information disclosure standards and give full play to the valuation role of the forward-looking information in the capital markets. Reference | Related Articles | Metrics | Comments（0） Select Self-Defense and Risk Contagion in Financial Sub-Markets under the Impact of Extreme Events SUI Jian-li, LI Yue-xin Contemporary Finance & Economics    2024, 0 (1): 59-74.   Abstract （100）            Knowledge map    Save Identifying the risk contagion path in financial sub-markets under the impact of extreme events has become an important part of financial risk prevention and control in the new era. Based on non-linear MSBIARCH model, this paper conducts a study to discriminate the volatility and contagion relationships and the volatility clustering trends among stocks, real estate, bulk commodities, exchange rates and bond markets. The findings show that, firstly, except for the one-way volatility contagion effects from the exchange rate market to the real estate market, from the bond market to the stocks, real estate, exchange rates markets and from the bulk commodity market to the bond market, there exists a two-way volatility contagion relationship between the other markets; secondly, the extreme risk events trigger the volatility contagion through market sentiment and expectations, the public emergencies generate volatility contagion based on market sentiment, and the policy announcements cause volatility contagion through fundamental factors and market expectations; finally, most of the volatility cluster trends in financial sub-markets originate from the volatility contagion in other sub-markets. The exchange rate market has weaker risk contagion ability, while the bulk commodity market and the bond market have stronger self-defense ability, which mainly carry out risk outputs. Therefore, it is necessary to further establish a full-process financial risk prevention and control system, improve the financial sub-market trading mechanism, strengthen communication and cooperation between markets, and reasonably guide public expectations, so as to enhance the anti-risk ability of financial markets and maintain the steady development of financial markets. Reference | Related Articles | Metrics | Comments（0） Select The Peer Effect of Share Repurchase Behavior of Listed Firms and Its Economic Consequences WANG Jun-yi, ZHAO Xiu-yun Contemporary Finance & Economics    2024, 0 (1): 75-85.   Abstract （81）            Knowledge map    Save Share repurchase is a kind of supply adjustment behavior in stock markets and has the advantage of being a price stabilizer. The existing researches mainly explore the motivations for corporate share repurchase from their own factors of the enterprises. Then, will the company’s stock repurchase decision be influenced by other companies in the same industry? What is the mechanism of this impact? By making use of the data from Chinese listed companies from 2005 to 2021, this study explores the peer effect and its impacting mechanism of share repurchase at the industry level. The findings show that there is a significant peer effect in the share repurchase behaviors of China’s listed firms, and there is also a peer effect in the amount and the frequency of share repurchases. The mechanism analysis reveals that the peer effect of share repurchase in listed companies is generated by the learning and imitating behaviors and the competitive pressure among the companies in the same industry. The moderating effect analysis reveals that the more abundant a company’s cash flexibility reserve is, the higher the media attention received by the peer companies, and the stronger the peer effect of share repurchase. The findings of the economic consequence analysis show that the share repurchases based on the peer effect have an increasing effect on corporate value. To this end, it is necessary to guide enterprises to make stock repurchase decisions that meet their substantive needs, while at the same time strengthening the supervision of the share repurchase behavior of the listed companies. Reference | Related Articles | Metrics | Comments（0） Select The Breaking of“Rigid Payment”in Bond Market and Enterprise Risk Information Disclosure BAI Jun, QIAO Jun, WU Shuang Contemporary Finance & Economics    2023, 0 (12): 53-67.   Abstract （76）            Knowledge map    Save Breaking the“rigid payment”of the bond market is an important measure of China’s financial market reform. This paper conducts a study based on the data of the listed companies from 2008 to 2021 and the difference-in-difference model. The findings show thatwhen the“rigid payment”of the bond market is broken, the level of enterpriserisk information disclosure will be significantly lowered. This negative effect is more significant among the enterprises with weaker implicit government guarantee capacity, with insufficient regional financial resources, with lower credit rating, or without third-party guarantee. The impact of the breaking of the“rigid payment”in the bond market on the internal mechanism of the bond-issuing enterprises to reduce risk information disclosure is realized through increasing the negative sentiment of investors and intensifying the financing constraints of enterprises, thus improving the motivation of enterprise information manipulation. The results of the economic consequence reveals that when the“rigid payment”is broken, although enterprises’ reducing the risk information disclosure will reduce the costs of corporate debt financing, the abnormal volatility of the capital markets will be intensified, which goes against the capital market stability. Therefore, efforts should be made to improve the bond risk hedging mechanism, to build a market-oriented credit mechanism, and to strengthen the supervision of enterprise text information, so as to alleviate the credit impact of the breaking of“rigid payment”on the market. Reference | Related Articles | Metrics | Comments（0） Select VAT Rate Simplification and Enterprise Equity Financing LI Ying, ZHANG Yu-feng Contemporary Finance & Economics    2023, 0 (12): 68-80.   Abstract （61）            Knowledge map    Save Raising the level of equity financing is the key path for enterprises to activate the capital market, increase the proportion of direct financing and improve the function of the capital market. Then, does the high efficient resource allocation effect of Value-added Tax (VAT) rate simplification help to promote corporate equity financing? By choosing the sample data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2021, this paper empirically analyzes the impact of the VAT rate simplification policy implemented in 2017 on corporate equity financing. The results show that the implementation of the simplified tax rate policy has significantly promoted the equity financing of enterprises; its influencing mechanism is to improve the internal value of enterprises and the information efficiency, then further improve the equity financing of enterprises. At the same time, the effect of the simplified tax rate policy on promoting equity financing of enterprises is more significant in the enterprises with higher credit discrimination and more applicable tax brackets. In addition, the good institutional environment of capital market has improved the effect of the VAT rate simplification policy on the promotion of corporate equity financing. Specifically, in the groups with a higher degree of marketization and higher degree of capital market openness, the positive effect between the simplified tax rate and corporate equity financing is more significant. Therefore, in the future, it is necessary to continue to optimize the VAT rate simplification policy, formulate differentiated tax supporting policies for different kinds of enterprises, play the combined role of tax reduction policies and the capital market system, and boost investors’ confidence, so as to promote the equity financing of enterprises. Reference | Related Articles | Metrics | Comments（0）