Economic Management Journal 

About: Economic Management Journal is an academic journal. The journal publishes majorly in the area(s): China & Government. It has an ISSN identifier of 2169-6020. Over the lifetime, 319 publications have been published receiving 853 citations.

Investor Sentiment and the Cross-Section of Stock Returns

Abstract: We investigate whether investor sentiment affects the cross-section of stock returns in China A-share market.The evidence shows that the sensitivity of stock returns to sentiment changes is different. When an index of investor sentiment takes high values,low tangible assets,high Debt-asset ratio,and non-dividend-paying stocks earn relatively higher returns,when sentiment is low,the aforementioned categories of stocks earn relatively lower returns.When sentiment is high,low-price,unprofitable and high book-market ratio stocks earn relatively higher returns and vice versa,but which is insignificant.The capitalization, volatility and institutional ownership appear to have no significant cross-section effect of investor sentiment on its characteristic Portfolio return.

A study of Models for Predicting Financial Distress in Chinese Listed Companies

Abstract: For limitations in financial ratio selection,discriminant time point definition and exact model confirmation with studies of financial distress prediction in China,we make an in—depth analysis of financial ratios,then pick up 120 ST firms and their matched 240 non—distressed firms through 2005—2009 as the sample,use stepwise discriminate analysis to establish Z—score models based on information from 2002—2008.Conclusions are:(1)Compared with the model constructed by traditional financial ratios,the discriminate accuracy is higher with the model constructed by us.(2) With studying movements of the stock price between ST firms and non—distressed firms,we confirm the discriminant time point should be t—3,and the discriminant model should be constructed by data in t—3.(3) With another sample(96 firms) that is not for model establishment to test the model's predictive power,to the financial distressed firms, when we make a discrimination three years before being distressed,the accuracy is 81.25%,thus it's a well discriminator for distinguishing distressed firms three years ahead.

Industrial Agglomeration,Foreign Direct Investment and Environmental Pollution

Abstract: With increasingly serious environmental problems in China in recent years,the government have issued a series of environmental protection policies,but the situation is still grim.In recent years,all kinds of pollutant emissions have been increasing in China,for example,industrial waste gas emission have reached 63.5519 trillion standard cubic meters and total volume of waste water discharged have reached 22.159 billion tons in 2012.However,the emissions of various pollutants are falling in some areas in recent years,for example,industrial sulfur dioxide emissions decreased from 641,000 tons in 2004 to 509,700 tons in 2012 in Chongqing.This phenomenon is worth to explore from different angles.The literatures on environmental pollution mostly related to the development of the industry.The degree of industrial agglomeration and the environment pollution have improved at the national level at the same time.However,the situation is just the opposite in some cities,e.g.Chongqing.The two different phenomena to provide us with a good perspective,namely,does industrial agglomeration can increase or reduce environmental pollution in China? Mostly scholars have researched the direct effect on the environmental pollution of industrial agglomeration.We consider that the effect industry agglomeration on the role of environmental pollution not only from the direct,but also should consider the indirect effect caused by other relevant factors.Some scholars found that foreign direct investment could increase the level of industrial agglomeration through scale economies,and the environment pollution in host country.This paper attempts to make some progress in the following three aspects:firstly,base on the Copeland—Taylor model,this paper constructs a theory model on industrial agglomeration affection towards environmental pollution considering foreign direct investment.Secondly,we analysis the industrial agglomeration threshold effect on environmental pollution based on foreign direct investment threshold.Finally,we explore the relationship between industry agglomeration and environmental pollution using the threshold model base on the panel data from Chinese 227 city during 2004 to 2012.The study found that the relationship between industrial agglomeration and environment pollution is not a simple linear relationship,but inverted U type characteristics of nonlinear relationship,which is different from the previous majority research conclusion.It is significant threshold effects of industrial agglomeration on environmental pollution.Industrial agglomeration can bring significant negative effects on environmental pollution in low foreign direct investment cities.The negative effect on the environment pollution is gradually weak with the increasing effect of the scale and technology spill over effect of industrial agglomeration.But it can dramatically reduce environmental pollution level in high foreign direct investment cites in China.In addition,increasing capital stock per capita will reduce the environment pollution.The regression coefficient of environmental regulation is positive but not significant.The influence coefficient of industrial structure is negative and significant and it shows that the optimization and upgrading of industrial structure can improve environmental quality in China.The regression coefficient of technology innovation is negative but not significant,which shows that the innovation of science and technology can effectively improve the environmental pollution,but it did not play its role in China.Therefore,we should formulate the different policy according to the different levels of regional foreign direct investment and take effective measures to improve the level of foreign direct investment to the threshold value.It is necessary to encourage the entry of those foreign- invested enterprises with technical advantages in environmental protection in order to realize the dual purposes of investment and environmental protection.At the same time,we should pay attention to promote the industrial structure upgrading and develop innovation of science and technology to reduce environmental pollution.

Study on the Model of Dynamic Incentive Based on the Theory of Principal and Agent

Abstract: Most of the companies in our nation, the behavior of managers have a bad impact on the long-term development of the company. It is mainly due to the lack of long-term incentives. Based on principal and agent theory, established a model of optimal dynamic incentive combining the long-term effort and the short-term effort with the future. In this paper, we find when the ability of the manager is greater than the incentive factor, the incentive strategy is more efficient and manager will pay more efforts than before. It provides the theory foundation for manager behavior selecting to ensure the current and long-term performance.

Stock Market Volatility and Corporate Investment

Abstract: The existing research suggest that volatility in stock market has great influence on corporate investmentHowever,there is little evidence about whether this effect also exists in Chinese stock marketBased on firmlevel data of Chinese listed companies in manufacturing,we detect a significantly positive relationship between stock prices and corporate investmentAnd we also find that excessive fluctuation in stock market will increase financial cost and depress corporate investmentRelaxing the financing constraints on firms can reduce these negative effects on the corporate investment