Xiaojun Yuan, Yinjie Shen and Haigang Zhou
This paper aims to identify how house price affects household consumption.
Abstract
Purpose
This paper aims to identify how house price affects household consumption.
Design/methodology/approach
The authors use a micro-level data set that tracks the house price and consumption of a vast number of households over a period of four years. OLS regression is the main econometric method.
Findings
The authors document robust evidence that an increase in house prices stimulates household consumption, regardless of whether a household owns or rents. Moreover, the authors find that both acquiring and losing homeownership negatively affects household consumption. Further investigation suggests significant regional heterogeneity in the relationship between house prices and household consumption.
Originality/value
This is one of the first studies examining the relationship between house price and household consumption in China using micro-level data. Given the uniqueness of the Chinese housing market and China’s fast-growing consumption rate, the study contributes new evidence to the long-lasting debate.
Details
Keywords
David Folsom, Iftekhar Hasan, Yinjie (Victor) Shen and Fuzhao Zhou
The aim of the paper is to investigate the associations between hedge fund activism and corporate internal control weaknesses.
Abstract
Purpose
The aim of the paper is to investigate the associations between hedge fund activism and corporate internal control weaknesses.
Design/methodology/approach
In this paper, the authors identify hedge fund activism events using 13D filings and news search. After matching with internal control related information from Audit Analytics, the authors utilize ordinary least square (OLS) and propensity score matching (PSM) to analyze the data.
Findings
The authors find that after hedge fund activism, target firms report additional internal control weaknesses, and these identified internal control weaknesses are remediated in subsequent years, leading to better financial-reporting quality.
Originality/value
The findings indicate that both managers and activists have incentives to develop a stronger internal control environment after targeting.