guangzi li | Chinese Academy of Social Sciences (original) (raw)

Papers by guangzi li

Research paper thumbnail of Chinese Retailing Development and Consumer Finance

This chapter investigates consumer finance in China from the perspective of the retail industry’s... more This chapter investigates consumer finance in China from the perspective of the retail industry’s development. This chapter discusses the current situation and history of China’s retail industry, particularly the prepaid card business. Consumer finance in China has chosen a different development path than Japan and South Korea.

Research paper thumbnail of Consumer Finance and Its Significance

This chapter analyzes consumer finance and its significance and discusses consumer finance’s conc... more This chapter analyzes consumer finance and its significance and discusses consumer finance’s concept and effects as well as its real economic foundation. This chapter also gives an overview of the development of consumer finance in China. According to the authors, the development of the national economy, the formation of the market (in which supply exceeds demand), the residents’ consumer structure, and the social security system are considered to be the four economic bases for consumer finance in China. Moreover, this chapter asserts that the development of the national economy, the acceleration of urbanization, changes in the consumption philosophy among the younger generations, and improvements in the social credit system are the impetus behind the growth of consumer finance in China.

Research paper thumbnail of Labor unions and debt covenant violations*

Research paper thumbnail of A Survey of Recent Literature in Foreign Countrieson Privatization

Chinese Review of Financial Studies, 2011

Based on Megginson and Netter's (2001) survey,this paper reviews the recent literature in for... more Based on Megginson and Netter's (2001) survey,this paper reviews the recent literature in foreign countries on privatization in the past decade.This study will help us to better understand the SOE's privatization reform.It will serve as a good reference for further research as well.

Research paper thumbnail of Labor unions and loan contracts

The European Journal of Finance, 2019

This paper investigates the relation between labor unions and loan contracting. We find that firm... more This paper investigates the relation between labor unions and loan contracting. We find that firms in more unionized industries tend to have lower loan spreads, longer maturity, a lower likelihood of security requirement, fewer and less strict loan covenants, and fewer performance-based covenants. Additionally, using firm-level union election data, we do not find lower loan spreads or longer maturity in unionized firms, but we show that bank loans to unionized firms are less likely to require security, have fewer and less strict loan covenants, and fewer performance-based covenants. While the results on loan spreads are mixed, we find consistent evidence that unionization has significant effect on loan covenants with industry and firm level unionization data as well as the instrument variable analysis. Labor unions' risk preference is similar to that of creditors. Therefore, it helps align the interests between banks and labor unions, thus reducing the cost of bank loans in terms of loan covenants.

Research paper thumbnail of Do property rights matter for bank loans? Evidence from China

Research paper thumbnail of Ticker symbol and comovement: Evidence from a unique dataset in China *

Abstract: Using a unique sample of matching stocks in China, this paper investigates the comoveme... more Abstract: Using a unique sample of matching stocks in China, this paper investigates the comovement between different stocks and its driving factors. Major findings include: (1) There exists a high positive correlation between returns on two matching stocks with similar ticker symbols; (2) By analyzing changes in correlation that took place after stocks changed their ticker symbols, we find that changes in ticker symbols have significant effects on the comovement between two stocks; (3) Individual investors are more possible to be confused about two matching stocks than institutional investors; Besides, when investor sentiment is high, the comovement between matching stocks is higher, indicating that investor sentiment amplifies comovement between matching stocks; In addition, if the price change of one of two matching stocks reflects “bad information ” (“good information”), the daily return on this stock will have a higher (lower) explanatory power for the daily return on the other...

Research paper thumbnail of Anti-corruption intensity and loan contracting: Evidence from non-state owned firms in China

Emerging Markets Review, 2021

We examine the effect of China’ s anti-corruption intensity on loan contracting efficiency. The f... more We examine the effect of China’ s anti-corruption intensity on loan contracting efficiency. The findings suggest that conditional on the political connection (total factor productivity) of a firm, the anti-corruption intensity in the province in which a firm is located leads to less (more) favorable loan contracting terms. Additional analysis shows that the effect of anti-corruption intensity on loan contracting terms is stronger for firms with higher financing constraints and weaker external legal environments. We further find that higher anti-corruption intensity is related to lower credit growth at the macro level.

Research paper thumbnail of Ticker symbol and comovement: Evidence from a unique dataset in China *

Using a unique sample of matching stocks in China, this paper investigates the comovement between... more Using a unique sample of matching stocks in China, this paper investigates the comovement between different stocks and its driving factors. Major findings include: (1) There exists a high positive correlation between returns on two matching stocks with similar ticker symbols; (2) By analyzing changes in correlation that took place after stocks changed their ticker symbols, we find that changes in ticker symbols have significant effects on the comovement between two stocks; (3) Individual investors are more possible to be confused about two matching stocks than institutional investors; Besides, when investor sentiment is high, the comovement between matching stocks is higher, indicating that investor sentiment amplifies comovement between matching stocks; In addition, if the price change of one of two matching stocks reflects “bad information” (“good information”), the daily return on this stock will have a higher (lower) explanatory power for the daily return on the other stock, ind...

Research paper thumbnail of Prior banking relationships and long-term IPO performance

International Review of Economics & Finance

Research paper thumbnail of Agency costs and tax planning when the government is a major Shareholder

In state owned enterprises (SOEs), taxes are a dividend to the controlling shareholder, the state... more In state owned enterprises (SOEs), taxes are a dividend to the controlling shareholder, the state, but a cost to other shareholders. We examine publicly traded firms in China and find significantly lower tax avoidance by SOEs relative to non-SOEs. The differences are pronounced for locally versus centrally-owned SOEs and during the year of SOE term performance evaluations. We link our results to managerial incentives through promotion tests, finding that higher SOE tax rates are associated with higher promotion frequencies of SOE managers. Our results suggest managerial incentives and tax reporting are conditional on the ownership structure of the firm.

Research paper thumbnail of Chinese Retailing Development and Consumer Finance

This chapter investigates consumer finance in China from the perspective of the retail industry’s... more This chapter investigates consumer finance in China from the perspective of the retail industry’s development. This chapter discusses the current situation and history of China’s retail industry, particularly the prepaid card business. Consumer finance in China has chosen a different development path than Japan and South Korea.

Research paper thumbnail of Consumer Finance and Its Significance

This chapter analyzes consumer finance and its significance and discusses consumer finance’s conc... more This chapter analyzes consumer finance and its significance and discusses consumer finance’s concept and effects as well as its real economic foundation. This chapter also gives an overview of the development of consumer finance in China. According to the authors, the development of the national economy, the formation of the market (in which supply exceeds demand), the residents’ consumer structure, and the social security system are considered to be the four economic bases for consumer finance in China. Moreover, this chapter asserts that the development of the national economy, the acceleration of urbanization, changes in the consumption philosophy among the younger generations, and improvements in the social credit system are the impetus behind the growth of consumer finance in China.

Research paper thumbnail of Labor unions and debt covenant violations*

Research paper thumbnail of A Survey of Recent Literature in Foreign Countrieson Privatization

Chinese Review of Financial Studies, 2011

Based on Megginson and Netter's (2001) survey,this paper reviews the recent literature in for... more Based on Megginson and Netter's (2001) survey,this paper reviews the recent literature in foreign countries on privatization in the past decade.This study will help us to better understand the SOE's privatization reform.It will serve as a good reference for further research as well.

Research paper thumbnail of Labor unions and loan contracts

The European Journal of Finance, 2019

This paper investigates the relation between labor unions and loan contracting. We find that firm... more This paper investigates the relation between labor unions and loan contracting. We find that firms in more unionized industries tend to have lower loan spreads, longer maturity, a lower likelihood of security requirement, fewer and less strict loan covenants, and fewer performance-based covenants. Additionally, using firm-level union election data, we do not find lower loan spreads or longer maturity in unionized firms, but we show that bank loans to unionized firms are less likely to require security, have fewer and less strict loan covenants, and fewer performance-based covenants. While the results on loan spreads are mixed, we find consistent evidence that unionization has significant effect on loan covenants with industry and firm level unionization data as well as the instrument variable analysis. Labor unions' risk preference is similar to that of creditors. Therefore, it helps align the interests between banks and labor unions, thus reducing the cost of bank loans in terms of loan covenants.

Research paper thumbnail of Do property rights matter for bank loans? Evidence from China

Research paper thumbnail of Ticker symbol and comovement: Evidence from a unique dataset in China *

Abstract: Using a unique sample of matching stocks in China, this paper investigates the comoveme... more Abstract: Using a unique sample of matching stocks in China, this paper investigates the comovement between different stocks and its driving factors. Major findings include: (1) There exists a high positive correlation between returns on two matching stocks with similar ticker symbols; (2) By analyzing changes in correlation that took place after stocks changed their ticker symbols, we find that changes in ticker symbols have significant effects on the comovement between two stocks; (3) Individual investors are more possible to be confused about two matching stocks than institutional investors; Besides, when investor sentiment is high, the comovement between matching stocks is higher, indicating that investor sentiment amplifies comovement between matching stocks; In addition, if the price change of one of two matching stocks reflects “bad information ” (“good information”), the daily return on this stock will have a higher (lower) explanatory power for the daily return on the other...

Research paper thumbnail of Anti-corruption intensity and loan contracting: Evidence from non-state owned firms in China

Emerging Markets Review, 2021

We examine the effect of China’ s anti-corruption intensity on loan contracting efficiency. The f... more We examine the effect of China’ s anti-corruption intensity on loan contracting efficiency. The findings suggest that conditional on the political connection (total factor productivity) of a firm, the anti-corruption intensity in the province in which a firm is located leads to less (more) favorable loan contracting terms. Additional analysis shows that the effect of anti-corruption intensity on loan contracting terms is stronger for firms with higher financing constraints and weaker external legal environments. We further find that higher anti-corruption intensity is related to lower credit growth at the macro level.

Research paper thumbnail of Ticker symbol and comovement: Evidence from a unique dataset in China *

Using a unique sample of matching stocks in China, this paper investigates the comovement between... more Using a unique sample of matching stocks in China, this paper investigates the comovement between different stocks and its driving factors. Major findings include: (1) There exists a high positive correlation between returns on two matching stocks with similar ticker symbols; (2) By analyzing changes in correlation that took place after stocks changed their ticker symbols, we find that changes in ticker symbols have significant effects on the comovement between two stocks; (3) Individual investors are more possible to be confused about two matching stocks than institutional investors; Besides, when investor sentiment is high, the comovement between matching stocks is higher, indicating that investor sentiment amplifies comovement between matching stocks; In addition, if the price change of one of two matching stocks reflects “bad information” (“good information”), the daily return on this stock will have a higher (lower) explanatory power for the daily return on the other stock, ind...

Research paper thumbnail of Prior banking relationships and long-term IPO performance

International Review of Economics & Finance

Research paper thumbnail of Agency costs and tax planning when the government is a major Shareholder

In state owned enterprises (SOEs), taxes are a dividend to the controlling shareholder, the state... more In state owned enterprises (SOEs), taxes are a dividend to the controlling shareholder, the state, but a cost to other shareholders. We examine publicly traded firms in China and find significantly lower tax avoidance by SOEs relative to non-SOEs. The differences are pronounced for locally versus centrally-owned SOEs and during the year of SOE term performance evaluations. We link our results to managerial incentives through promotion tests, finding that higher SOE tax rates are associated with higher promotion frequencies of SOE managers. Our results suggest managerial incentives and tax reporting are conditional on the ownership structure of the firm.