51. September 28, 2016
52. October 13, 2016
53. October 19, 2016
54. November 3, 2016
55. November 7, 2016
56. November 9, 2016
57. November 18, 2016
58. November 24, 2016
59. November 25, 2016
60. December 23, 2016
61. December 26, 2016
62. December 29, 2016
- Speaker: Dr. Zhao, Xiaojian (Assistant Professor, The Hong Kong University of Science and Technology)
- Topic: Incentive-Compatibility in Financial Contracting with Limited Liability
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: In the presence of limited liability, the incentive compatibility constraints in financial contracting models with asymmetric information are weaker than assumed in much of the literature. In this paper, we identify the problem that has been overlooked in the literature and provide a rigorous proof of optimality of debt contracts under fairly general assumptions.
52. October 13, 2016
- Speaker: Dr. Chu, Yin (Assistant Professor, Zhongnan University of Economics and Law)
- Topic: Vertical Separation of Transmission Control and Regional Production Efficiency: Evidence from the U.S. Electricity Power Industry
- Time: 2:30-4:00 pm
- Venue: Liangsheng Building
- Abstract: This study investigates the divestiture of transmission control from vertically-integrated power producers, aimed to maintain non-discriminatory access of the electricity network. I ask whether the vertical separation is sufficient to enhance how efficiently production is allocated among producers (i.e., regional production efficiency). Using a difference-in-difference strategy, I compare the treated region, Southwest Power Pool (SPP), with a control region, where no restructuring activities were implemented. Based on relatively noisy estimates of the coefficient of primary interest, I fail to find any significant gains in regional production efficiency. The empirical results are also robust to alternative specifications, including treatment dates, sizes of the event window, and control groups.
53. October 19, 2016
- Speaker: Dr. Li, Zhengtao (Assistant Professor, Xi'an Jiaotong University)
- Topic: Does Chinese municipal government really concern air pollution?
- Time: 3:00-4:30 pm
- Venue: Liangsheng Building
- Abstract: This paper mainly examines effects of government’s air pollution concern on air pollutants emission by using Chinese municipal data from 2005 to 2013. Based on multi-group structural equation model (SEM) and cross-section data form, we found “false concern on air pollution” widely existed among municipal governments, and inverted U curve for the dynamic relationship between air pollutants emission and income has appeared in coastal area (rich area of China), in the central and inland region (undeveloped areas), however, does not. Similar results were also found by analyzing panel data with two level latent growth model. The impacts of government’s concern toward air pollutants emission were inconsistent in different years. Government’s “true concern” on air pollution only existed for the period of 2008-2011. The main conclusion is that economic growth is still taken as top priority by Chinese municipal officials and implementing environmental policies is facing enormous challenges.
54. November 3, 2016
- Speaker: Dr. Wu, Jiemai (Assistant Professor, The University of Sydney)
- Topic: Beneficially Imperfect Persuaders
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: When a decision maker’s (DM's) choice depends on the information provided by persuaders, does the DM benefit from that information? I address this question in the context of a Bayesian persuasion game in which independent persuaders with no private information try to persuade a DM by gathering information using verifiable tests. All persuaders want the DM to switch her action from a default action to a new action, but whether the DM also finds it optimal to switch depends on the state of the world. The persuaders strategically design tests that may be biased towards the new action and that best respond to the test designs of the other persuaders. I show that although the DM never benefits when there is only one persuader, there always exist strict equilibria with high payoffs for the DM when there is more than one persuader, even if the persuaders have perfectly aligned incentives. Moreover, in these equilibria, persuaders choose noisy tests that sometimes misreport their desired state as the undesired one.
55. November 7, 2016
- Speaker: Dr. Chew, Soo Hong (Professor, National University of Singapore)
- Topic: Neurogenetics of Decision Making Under Risk
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: There are two tenets in the behavioral approach to modeling decision making under risk: (i) loss-gain differentiation in risk attitude, and (ii) affect-induced weighting of likelihood. Relating to (i), Zhong et al (2009a) propose a dual systems hypothesis involving dopaminergic (serotonergic) modulation of the sensitivity towards valuation of gains (losses) and provide genetic evidence in support this hypothesis using a sample of 325 Chinese subjects. Relating to (ii), Zhong et al (2009b) find association of longshot preference in the same sample with the high activity allele of MAOA, popularly known as the warrior gene. We have proceed to explore the gene-brain-behavior link for both findings. Using a subsample of 41 subjects, Zhong et al (2012) find further support of the dual systems hypothesis implicating the differential involvement of the striatum for gain oriented risk and the amygdala for loss oriented risks. Applying structural brain imaging on a subsample of 115 subjects, we find a MAOA modulated neuroanatomical circuit for longshot preference involving the gray matter volumes particularly in the left insula and the right parahippocampal gyrus. This suggests a superordinate role for anticipatory feelings underpinned by the limbic system in people’s risk attitude towards longshot risks. Subsequently, with a substantially larger sample of 3193 Chinese subjects, we investigate the extent to which our earlier findings are replicated and explore potential genetic pathways underpinning the loss-gain differentiation in risk attitude and attitude towards longshot risks.
56. November 9, 2016
- Speaker: Dr. Li, Qingyuan (Professor, Wuhan University)
- Topic: Taxes, Director Independence, and Firm Value: Evidence from Board Reforms Worldwide
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: We examine whether variation in firms’ corporate governance mechanisms arising from exogenous board reforms explains differences in the level of corporate tax avoidance and the corresponding relation between tax savings and firm value. Our inquiry is enabled by a database of major board reforms from Fauver, Hung, Li, and Taboada (2016) that captures exogenous, country-level changes in board independence for a sample of 72,102 public corporations in 29 countries. We find that corporate tax avoidance decreases significantly after major board reforms. In particular, major board reforms involving board, audit committee independence and reforms involving separation of the board chairman and chief executive officer roles reduce tax avoidance. “Comply-or-explain” reforms result in a greater reduction in tax avoidance than “rule based” reforms. Furthermore, reforms with high impact and high compliance speed reduce tax avoidance more than those with low impact and low compliance speed. We document that the impact of board reforms on managers’ incentives to engage in tax avoidance is weaker for countries with stronger country-level investor protection mechanisms. We test the relation between tax avoidance and firm value associated with board reforms. We find that tax avoidance before (after) board reforms is negatively (positively) associated with firm value. This result is consistent with board reforms being associated with a reduction in agency conflicts or costs of tax avoidance.
57. November 18, 2016
- Speaker: Dr. Huangfu, Bingchao (Assistant Professor, Zhongnan University of Economics and Law)
- Topic: A Tale of Two Lemons: Multi-good Dynamic Adverse Selection
- Time: 1:30-3:00 pm
- Venue: Liangsheng Building
- Abstract: This paper studies the role of cross-market information spillovers in a multi-good dynamic bargaining problem with interdependent values. More precisely, in an environment where a seller has two heterogeneous goods for sale in two markets and is better informed than the potential buyers about the qualities of the goods, we investigate how the information revealed through (non-)trade of one good affects the probability of trade of the other good, and its consequences to the trading dynamics and patterns of specialization. Our main finding is that when the qualities of the two goods are sufficiently negatively correlated and the seller is patient, then even if adverse selection precludes first-best efficiency for both goods, it is mitigated as sequential trade occurs quickly through the seller's endogenous signaling motive, as long as buyers in one market observe the (non-)trading outcome in the other market. As a consequence, sellers have an incentive to specialize in one of the two goods before playing the bargaining game with the buyers, in such a way to endogenously generate the required negative correlation between the qualities of the two goods. In contrast, without such cross-market observability and subsequent specialization, i.e., endogenous negative correlation, there is either bargaining delay or impasse in both markets as in the standard dynamic adverse selection problem.
58. November 24, 2016
- Speaker: Dr. Liang, Pinghan (Professor, Sun Yat-sen University)
- Topic: 干部专业经验与经济绩效——来自地级市领导的证据
- Time: 4:00-5:30 pm
- Venue: Liangsheng Building
- Abstract: 80年代以来,地方政府领导的选任日益强调“专业化,知识化”的背景。已有很多研究分析了省级地方官员的经历背景与辖区经济增长的关系,但是,官员专业经验对于多维度经济绩效的影响并未获得充分研究。本文基于地方领导人(地级市市委书记和市长)的工作履历信息,以是否有专业性部门工作经历这一虚拟变量代表其专业经验,对2001——2011年280个地级市面板数据进行了定量分析。我们发现,具有专业经验的市长显著提高了辖区的固定资产投资水平,促进了基础设施建设,吸引了更多的外资,增加了企业数量,而市委书记的专业化背景则没有显著影响。进一步分析发现,具有专业经验的市长选择了高质量的经济项目,改善了营商环境,提高了政府效率,但是并显著影响到辖区所获取的一般和专项转移支付和上级政策支持。考虑到市长个人的教育程度,是否本地晋升等因素后,专业经验的影响仍然是显著的。本文结论将为地方政府领导的选拔任用提供丰富的政策启示。
59. November 25, 2016
- Speaker: Dr. Zhang, Junjie (Associate Professor, Duke University, Duke Kunshan University)
- Topic: When Airpocalypse Met Blockbusters: The Impact of Air Pollution on Box Office
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: This paper estimates the ramification of air quality and theatrical market performances with daily data of Air Pollution Index (API) and movie attendance and revenue from China. It is the first attempt to assess the impact of air quality on consumption. Our data cover 829 movies shown on screens in 56 major Chinese cities during 2012--2014. Our benchmark estimations show that air pollution in China has negative effects on both daily movie audiences and revenue. In particular, a 10% reduction in API leads to a 0.19% increase in total daily audiences in a city, while the benefit in total daily revenue is 0.28%. These numbers should be interpreted as the lower bound estimates that air pollution has on the entertainment industry that includes theaters and restaurants. The baseline result that API negatively affects daily performance of movies is robust to a number of alternative specifications and sub-samples analyses.
60. December 23, 2016
- Speaker: Dr. Zhou, Mohan (Assistant Professor, Central University of Finance and Economics)
- Topic: Regulation, Innovation, and Firm Selection: The Porter Hypothesis Revisited
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: The Porter Hypothesis (PH) posits that well-designed environmental regulations can stimulate innovation, which may lead to efficiency gains or even profit increase for the reg- ulated firms. Extant theoretical works examining the PH neglect two important aspects in their models and analyses: firm heterogeneity and general equilibrium. In this study, we re- visit the PH by incorporating these two features in our model and analysis. We show that the PH holds for high-capability firms, but not for low-capability firms. Although heterogeneous responses exist in innovation investment, the average industry productivity increases.
61. December 26, 2016
- Speaker: Dr. Xiao, Yajun (Lecturer at Finance Discipline Group, UTS, Australia)
- Topic: Intermediary Asset Pricing Theory and Evidence in the Emerging Market
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: We show that shocks to aggregate leverage of the less regulated financial intermediaries are informative in explaining asset returns in both time series and cross section in the Chinese capital market. However, shocks to equity ratio of highly regulated financial intermediaries fail to be statistically and economically informative. Our results are the new empirical evidence to intermediary asset pricing theory. Our results reveal that the intermediaries in China such as trusts and fund-matching companies become marginal investors because they channel lending to investor and their credit lending indirectly affects pricing equations of investors.
62. December 29, 2016
- Speaker: Dr. Li, Shengyu (Assistant Professor, Durham University)
- Topic: Input Prices, Productivity and Trade: Evidence from Chinese Paint Manufacturers
- Time: 10:00-11:30 am
- Venue: Liangsheng Building
- Abstract: How does international trade affect the performance of manufacturing firms? The literature has focused primarily on the impact of trade on productivity. However, trade may also directly affect the intermediate inputs prices faced by firms through greater variety and price competition. This potential channel for gains has received less attention, perhaps due to the lack of availability of input prices in most manufacturing datasets. To understand whether trade plays a role in reducing input prices, we propose a model of production allowing for unobserved heterogeneity in firm productivity and input prices. Our method recovers firm-level productivity and input prices controlling for firms’ endogenous choices of input quality. We apply our method to a dataset of the Chinese paint manufacturing industry from 2000 to 2006. Results indicate that trade has impacts on firms through both the input price and productivity channels. Exporters benefit from increased productivity, and importers benefit from both strengthened productivity and lower input prices. To evaluate how these gains interact and contribute to the long-term firm value, we estimate a model of firms’ dynamic import and export decisions while controlling for endogenous selection into trade. Counterfactual results show that removing the gains from productivity and input prices channels separately lead to similar levels of loss of firm value in the long run, but are associated with different mechanisms. It is also shown that the import tariff cut after China joining WTO in 2001 increases average firm value by about 2.1 million US dollars through a direct effect on reducing input prices and an induced boost of productivity and trade participation.