中国金融学术研究网
CHINA FINANCIAL RESEARCH NETWORK

公司财务--资本结构
工作论文
2009-04-30 第2卷 第5期

编: 清华大学经管学院金融学教授。

执行主编: 杨之曙清华大学经济管理学院金融学副教授。


本期目录

Distress Without Bankruptcy: An Emerging Market Perspective

Joseph P. H. Fan School of AccountancyChinese University of Hong Kong (CUHK)
Jun Huang Shanghai University of Finance and EconomicsSchool of Accountancy
Ning Zhu University of California, DavisGraduate School of Management

Financial Constraints in China: Firm-Level Evidence

Sandra Poncet Universite ParisPantheon-Sorbonne
Walter Steingress Catholic University of Leuven (KUL)Department of Economics
Hylke Vandenbussche Center for Operations Research and EconomicsCORE.

Is the Demand Curve for Stocks Downward-Sloping? New Evidence from Seasoned Equity Offerings

Zhangkai Huang Tsinghua UniversitySchool of Economics and Management
Longkai Zhao Peking UniversityGuanghua School of Management
Xiaoyuan Mao Peking UniversityGuanghua School of Management

Does Enforcement of Intellectual Property Rights Matter? Evidence from Financing and Investment Choices in the High Tech Industry

James S. Ang Florida State UniversityCollege of Business
Yingmei Cheng Florida State UniversityCollege of Business
Chaopeng Wu Xiamen UniversitySchool of Management

Earnings Management, Underpricing and Underperformance of Chinese IPOs

Zhe Shen Xiamen UniversityInstitute of Financial and Accounting Studies
Jerry Coakley University of EssexEssex Business School
Norvald Instefjord University of EssexEssex Business School


论文摘要

Distress Without Bankruptcy: An Emerging Market Perspective

Joseph P. H. Fan School of AccountancyChinese University of Hong Kong (CUHK)
Jun Huang Shanghai University of Finance and EconomicsSchool of Accountancy
Ning Zhu University of California, DavisGraduate School of Management

We investigate how institutional factors influence behavior of distressed firms in emerging markets, where bankruptcy laws are often weak and debtors have greater bargaining power in distress. By studying a comprehensive sample of distressed firms in China, a representative of the cases in other emerging markets, we find that institutional background matters considerably to distress resolution. Distressed companies facing better institutional background (i.e. with less state ownership structure, in regions with better government quality and greater degree of local financial development), display relatively better operating performance, more disciplined capital structure, and higher ultimate recovery likelihood. Our findings provide novel evidence on how institutional factors discipline distressed firm behavior and facilitate distress resolution in emerging markets.

Financial Constraints in China: Firm-Level Evidence

Sandra Poncet Universite ParisPantheon-Sorbonne
Walter Steingress Catholic University of Leuven (KUL)Department of Economics
Hylke Vandenbussche Center for Operations Research and EconomicsCORE.

This paper uses a unique micro-level data-set on Chinese firms to test for the existence of a "political-pecking order" in the allocation of credit. Our findings are threefold. Firstly, private Chinese firms are credit constrained while State-owned firms and foreign-owned firms in China are not; Secondly, the geographical and sectoral presence of foreign capital alleviates credit constraints faced by private Chinese firms. Thirdly, geographical and sectoral presence of state firms aggravates financial constraints for private Chinese firms (“crowding out”). Therefore it seems that ongoing restructuring of the state-owned sector and further liberalization of foreign capital inflows in China can help to circumvent financial constraints and can boost the investment of private firms.

Is the Demand Curve for Stocks Downward-Sloping? New Evidence from Seasoned Equity Offerings

Zhangkai Huang Tsinghua UniversitySchool of Economics and Management
Longkai Zhao Peking UniversityGuanghua School of Management
Xiaoyuan Mao Peking UniversityGuanghua School of Management

Is the demand curve for stocks downward-sloping? The index-inclusion literature tries to answer this question by looking at price reactions to stocks added or deleted from major stock indices. We look for new evidence using another well-established event: the negative price reaction to the seasoned equity offerings. While this can be caused by asymmetric information, another plausible explanation might be a downward-sloping demand curve for stocks. We argue that we can disentangle the two factors using a natural experiment in China's stock market, where companies' equity offering plans need to be approved by the regulator. We find strong negative price reactions to the announcement of such approval. Since all information on the overvaluation of the firm is released when the firm announces its equity offering plan, the negative reaction to the approval of the plan cannot be explained by changes in the valuation of the firm. Furthermore, we find different price reactions in China's segmented stock market when the firm only issues new shares in one of the two domestic markets (A- and B-share markets). The evidence suggests that a significant part of the negative price reaction of equity offerings is related to a supply shock to a downward sloping demand curve.

Does Enforcement of Intellectual Property Rights Matter? Evidence from Financing and Investment Choices in the High Tech Industry

James S. Ang Florida State UniversityCollege of Business
Yingmei Cheng Florida State UniversityCollege of Business
Chaopeng Wu Xiamen UniversitySchool of Management

Financing of and investing in R&D are prone to risks of appropriation by competitors, information asymmetry, and agency problems. Although legal protection of intellectual property (IP) rights at the national level is necessary to encourage investing in R&D, we show that the effective enforcement at the local level is also critical. We concentrate on the impact of provincial level IP rights enforcement on the financing of and investing in R&D, using a unique and rich sample of high technology firms. These firms are located in twenty-eight provinces/districts throughout China. The enforcement of IP rights differs at the provincial level, although the firms are under the same set of national and international laws. Controlling for provincial institutional factors such as economic development, banking system development, legal system performance, and local government corruption, we find that the enforcement of IP rights positively affects firms' ability to acquire new external debt (including formal and informal financing) and external equity. The firms in provinces with better enforcement of IP rights invest more funding in R&D, generate more patents, and produce more sales from new products. We also find better enforcement of IP rights helps mitigate the problem of appropriation by local partners in foreign and ethnic joint ventures. To deal with the problems of reverse causality and omitted common variables, we adopt the instrumental variable method and the approach used by Rajan and Zingales (1998), and the impact of IP rights enforcement is robust to different specifications. Our evidence confirms that enforcement of IP rights matters even in China. Furthermore, our results support that the enforcement of IP rights affects the growth in the economy via the channels of financing of and investing in R&D.

Earnings Management, Underpricing and Underperformance of Chinese IPOs

Zhe Shen Xiamen UniversityInstitute of Financial and Accounting Studies
Jerry Coakley University of EssexEssex Business School
Norvald Instefjord University of EssexEssex Business School

This paper examines the role of earnings management in the underpricing and long-term performance of Chinese initial public offerings (IPOs) issued during the 1998-2003 period. It tests the earnings extrapolation hypothesis that naive investors extrapolate pre-issue earnings without fully adjusting for potential manipulation of accounting accruals, thereby inflating the initial trading price. If the hypothesis holds, underpricing will be positively related to initial earnings management. However, since the latter is subsequently corrected over time, it will lead to inferior long-term stock performance. The empirical evidence is consistent with both the earnings extrapolation and the long run underperformance hypotheses for our sample of 506 IPOs.


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