Frederick (Fengming) Song, Hui Tan and Yunfeng Wu
The Chinese stock market is a typical emerging market with special features that are very different from those of mature markets. The objective of this study is to investigate…
Abstract
Purpose
The Chinese stock market is a typical emerging market with special features that are very different from those of mature markets. The objective of this study is to investigate whether and how these features affect the volatility‐volume relation for Chinese stocks.
Design/methodology/approach
This paper examines the roles of the number of trades, size of trades, and share volume in explaining the volatility‐volume relation in the Shanghai Stock Exchange with high frequency trade data used.
Findings
The results confirm that the volatility‐volume relation is driven mainly by the number of trades on the Chinese stock market. The number of trades explains the volatility‐volume relation better than the size of trades. Furthermore, some results are obtained that differ from those of mature markets, such as the US market. The results show that the second largest sized trades affect the volatility more than other trades on the Chinese market.
Originality/value
The results show that, in the Shanghai Stock Exchange, informed traders camouflage their private information or manipulation behavior through the second largest sized trades. The results may have important implications for work explaining the volatility‐volume relation on the Chinese stock market, further providing a reference by which to regulate emerging markets.
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Feng Gao, Fengming Song and Jun Wang
The paper aims to test the rational‐expectations hypothesis using data from the Chinese stock market.
Abstract
Purpose
The paper aims to test the rational‐expectations hypothesis using data from the Chinese stock market.
Design/methodology/approach
The rational‐expectations hypothesis plays a critical role in economic and financial studies. However, it is unclear whether this hypothesis is consistent with real‐world decision making since existing empirical results are mixed. This paper tests the hypothesis directly using survey data from China's stock market by developing a technique to analyze discrete or limited independent‐variable models.
Findings
The paper shows that in China's stock market survey forecasts are overly optimistic, especially with positive information, and can be improved slightly using past information.
Originality/value
The paper develops a technique to analyze the discrete or limited independent‐variable model. Testing with Chinese stock market data provides some insights into the characteristics of emerging markets.
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Jingyun Ma, Fengming Song and Zhishu Yang
The purpose of this paper is to examine the evolution of China's securities market regulation from 1980 to 2007 and the dual role of the government in this process.
Abstract
Purpose
The purpose of this paper is to examine the evolution of China's securities market regulation from 1980 to 2007 and the dual role of the government in this process.
Design/methodology/approach
When the government is simultaneously the owner and regulator of the securities market, the evolution of securities market regulation follows a path of compulsory institutional change. China's Government authorities have played a dual role in this process by acting both as the securities market regulator and the controlling owner of the stock exchanges. The paper uses the evolution of China's securities market regulation from 1980 to 2007 to illustrate this theoretical framework.
Findings
Using the case of China, this paper provides unique evidence of how securities regulation evolves in response to government direction and supervision if the government is both the owner and the regulator of the securities market.
Originality/value
The paper offers insight into issues of securities market regulation in China and other emerging markets.
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Kelvin Henry Kyissima, Gong Zhang Xue, Thales Pacific Yapatake Kossele and Ahmed Ramadhan Abeid
The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.
Abstract
Purpose
The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.
Design/methodology/approach
The study uses panel data from a sample of 716 firms that have been listed in China for at least 15 years. A fixed-effects panel data regression model with time effects is used in the estimation.
Findings
The findings show that size, profitability and investment opportunities have a significant influence on capital structure, whereas the tangibility of assets is not found to be significant. Few industries show significance in explaining differences and variation in leverage ratios.
Social implications
It is recommended by this study that corporate managers of listed firms in China should consider leverage ratios variation while choosing the capital structure.
Originality/value
This study can be helpful in assisting companies to make financing decisions and setting up strategies relevant in their growth and profitability. The study will also have a significant assistance to bring to light corporate issues to policy makers, especially in the areas of both equity and debt financing, particularly the bond market. To the society, this study will show the nature of Chinese-listed companies, and it can assist individual investors in making decisions regarding companies in which they hold investments and in making meaningful comparisons with other companies. The paper also aims at contributing to the existing literature on the empirical study on capital structure.
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Augustine Senanu Komla Kukah, Xiaohua Jin, Robert Osei-Kyei and Srinath Perera
This study aims to undertake a review of how carbon trading contributes to a reduction in emission of greenhouse gases (CHGs).
Abstract
Purpose
This study aims to undertake a review of how carbon trading contributes to a reduction in emission of greenhouse gases (CHGs).
Design/methodology/approach
A narrative literature review approach was adopted to identify and synthesise existing literature using the Scopus and Web of Science databases. Articles were limited to the past 10 years to obtain the most current literature. The various ways in which carbon trading leads to reductions in emissions were identified and discussed.
Findings
The results showed that the main ways in which carbon trading contributes to reductions in emissions are through innovation in low-carbon technologies, restoration of ecosystems through offset money, development of renewable and clean energy and providing information on investment related to emissions.
Practical implications
The value of this study is to contribute to the built environment’s climate change mitigation agenda by identifying the role of carbon trading.
Originality/value
The output of this research identifies and contextualises the role carbon trading plays in the reduction of CHG emissions.