On December 29, the Chinese Finance scholars forum which is the annual meeting of the finance and Accounting Committee of China Management Modernization Research Association opened in building 2, Qunxian, Xiamen University. The conference was sponsored by The Finance and Accounting Professional Committee of China Management Modernization Research Association, the Department of finance of the school of management of Xiamen University, and the major project of National Natural Science Foundation of China, "Research on some scientific issues of accounting, audit and corporate finance based on Chinese situation", Many outstanding scholars from Beijing University, Tsinghua University, Renmin University of China, Zhejiang University, Fudan University universities, University of International Business and Economics, Sun Yat-sen University, Central University of Finance and Economics, Wuhan University, Zhongnan University of economics and law, Chongqing University, Massachusetts Institute of technology and many other universities at home and abroad attended the meeting online and offline. The meeting also attracted more than 500 people online and offline to attend the meeting.
The opening ceremony
The opening ceremony of the conference was hosted by Professor Wu Yuhui. director of the Department of finance, School of management, Xiamen University. Deputy secretary of the Standing Committee of the Party committee and President of the school of management of Xiamen University, Professor Li Jianfa, expressed warm congratulations on the holding of the finance scholars Forum on behalf of Xiamen University and the school of management of Xiamen University, and he hoped that finance scholars could do financial research reflecting the characteristics of the times and Chinese characteristics. Finally, Professor Li Jianfa appreciated the scholars from various universities in participating in and supporting the seminar, and welcomed them to Xiamen University for communication and study again at the centennial celebration of Xiamen University in 2021.
Next, Professor Wu Shinong also expressed a warm welcome to the experts, scholars, teachers and students, and looked forward to the future of the company's financial research. Professor Wu Shinong first reviewed the research history and classical research framework of corporate finance, and summarized the three development trends of corporate finance research: the trend from "financial management" to "corporate finance" and then to "corporate finance", the trend of interdisciplinary and interdisciplinary. Finally, Professor Wu Shinong looked forward to the eight new areas of future research on the company's finance, and wished the seminar a complete success.
Keynote speech
Professor Wu Liansheng from Peking University presided over, and Professor Huang Yasheng of Sloan School of business of MIT and Professor Tian Xuan of Tsinghua University delivered keynote speeches respectively.
From the perspective of political economy, Professor Huang Yasheng delivered a keynote speech on the stability mechanism of China's historical policy. Professor Huang Yasheng first introduced the research problems and data of historical quantitative research, and showed the research on the impact of the imperial examination system on the stability of China's historical policy system from the theme of policy system stability and the collected ancient imperial examination data and ancient official appointment data. It is found that the stability of the ruling class is highly consistent with the setting of the imperial examination system in time. The imperial examination system effectively restricts the conflict of rights of the ruling class, stabilizes the system through talent competition rather than political competition, and supports the contribution of the imperial examination system to the stability of China's historical system. Professor Huang Yasheng also extended his research to the world and found that the imperial examination system represented by China and the parliamentary system represented by Britain can bring institutional stability.
Professor Tian Xuan delivered a keynote speech on China's venture capital market. Professor Tian Xuan first introduced the history and development of Chinese venture capital market. Then he introduced the venture capital market from three aspects: fund-raising, investment and exit. Professor Tian Xuan introduced the capital source of venture capital market from two aspects: the development of RMB fund and the composition of limited partners. He introduced the investment situation of venture capital market from the investment stage and the comparison of the distribution of venture capital industry between China and the United States, and summarized the exit of venture capital in China from two aspects: Launch channel and exit income. Professor Tian Xuan also expanded other forms of VC investment, mainly introducing enterprise venture capital and government guidance fund.
Paper report
Next, eight outstanding financial scholars made wonderful paper reports, and the reviewers also made wonderful comments and had deeply exchanges with the reporter. Professor Wu Liansheng of Peking University, Professor Chen deqiu of University of University of International Business and Economics, Professor Shen Zhe from Xiamen University and Professor Wang Yanyan from Xiamen University presided over the meeting respectively.
Professor Wu chaopeng from Xiamen University reported on the paper Air Pollution and Innovation. Starting from the problem of air pollution that people pay more and more attention to, the article explored the impact of air pollution on the real economy, especially innovation, from the urban level and company level, and found that air pollution can have a significant negative impact on the quantity and quality of innovation, It also has an impact from two channels: innovation efficiency and inventor migration. This paper skillfully uses the inversion phenomenon as a tool variable and the RDD method using the Qinling Huaihe River line as a breakpoint to alleviate the endogenous problem. Professor Yuan Hongqi from Fudan University made wonderful comments on the paper, and further discussed the inference of causality and the economic meaning of air pollution variables.
Professor Xu Nianxing of Renmin University of China reported on the paper “Financial Analyst Earnings Forecasts about Polluting F5irms – Does Pollution Aversion Matter?” Starting from the analysts' earnings forecasts for polluting enterprises, this paper studied whether the analysts' forecasts would be affected by their aversion to pollution. Through the impact of environmental crisis events, analysts' urban migration and matching samples, this paper alleviates the endogenous problem, and finds that analysts with high pollution aversion are more likely to make more pessimistic earnings forecasts for polluting enterprises. The article also excludes other explanations such as the information advantage of local analysts, and further explores the impact of this phenomenon on market response and corporate social responsibility. Professor Chen Jun of Zhejiang University made wonderful comments on the paper, and further discussed from the aspects of endogenous problems, alternative interpretation, theoretical interpretation and logical problems.
Professor Li Guangzhong of Sun Yat sen University reported on the paper “Information Spillover and Corporate Policies: The Case of Listed Options.” Starting from the issuance of stock options, the article explored the impact of the issuance of options on a series of corporate financial behaviors. Using the newly constructed instrumental variables and two natural experiments - the opening of option market and the great change of option listing standards, this paper alleviates the endogenous problems, and finds that option issuance improves the quality of securities issuance, investment and innovation, cash holding and investment efficiency, and reduces financial leverage, stock repurchase and dividend distribution, and reduces the market response to the company's financial announcement. Professor Wang Yanchao from the Central University of Finance and Economics made wonderful comments on the paper, and further discussed the internal relationship of financial indicators and the influence path of options.
Professor You Jiaxing of Xiamen University reported on the paper "Innovative Government and Enterprise Total Factor Productivity - a research perspective based on the text analysis of government work report". It used Python to analyze the text of government work report, and constructed the proxy variable of innovative government by describing the similarity between work reports. It is found that innovative government can enhance the total factor productivity of enterprises. The article also makes endogenous mitigation based on two instrumental variables, and further tests emerging industries and government subsidies. It is found that innovative government can not only promote the improvement of total factor productivity of Companies in emerging industries, but also improve the total factor productivity of companies receiving government subsidies. Professor Xin Qingquan of Chongqing University made wonderful comments on the paper and put forward suggestions from the aspects of research design and research results.
Professor Li Qingyuan from Wuhan University reported on the paper "Approval System Reform, Rule of Capital Profit Seeking and Corporate Equity Value - a quasi-natural experiment based on the staggered layers of regional administrative approval reform". This paper studies how the approval system reform affects the company's investment decision and then how to affect the company's value from the perspective of real option decision-making. Through empirical analysis, the paper finds that the reform of the examination and approval system strengthens the rule of capital chasing profit, that is, when facing good investment opportunities, it significantly promotes the company to expand investment in time, and when facing poor investment opportunities, it urges the company to reduce investment in time. The article also further tests that the strengthening effect of the reform of the approval system on the law of capital profit pursuit is more significant in the samples of downstream industries, greater fluctuation of investment opportunity information and lower customer concentration. Professor Zheng Guojian of Sun Yat sen University made wonderful comments on the paper and put forward suggestions from the aspects of theoretical analysis and empirical design.
Professor Zhang Junsheng of Sun Yat sen University reported on the paper "Sustainable Bond Issuance and Deleveraging of State-owned Enterprises: Economic Essence or Financial appearance?". Starting from the current situation of sustainable bond issuance in China, this paper explores the motivation and influence of sustainable bond issuance. It is found that the purpose of issuing perpetual bonds is to deleverage at the level of financial statements. The issuance of perpetual bonds amplifies the negative impact of the issuer's leverage level on the bond credit rating and the positive impact of the issuer's leverage level on the bond credit spread. The conclusion shows that the capital market still tends to regard the sustainable debt as a liability, and can not achieve substantial deleveraging. Professor Wang Yanyan of Xiamen University made wonderful comments on the paper, and made an in-depth discussion on the issuance motivation, essence and research design of perpetual bonds.
Professor Qi Shusen of Xiamen University reported the paper “Climate Change Risk and the Costs of Mortgage Credit”. The article paid attention to the problem of climate change which has attracted more and more attention. Taking the risk of sea level rise as the foothold, the article studied its impact on banks' housing mortgage loan decision-making. It is found that when commercial banks provide mortgage loans to houses that may be submerged due to sea-level rise, the loan interest rate charged will rise by an average of 13 basis points, and this premium will increase significantly in areas with greater exposure to and recognition of climate change and in periods with higher attention to climate change. This paper makes a variety of robustness tests, and demonstrates that the risk of sea-level rise is a long-term risk rather than a short-term risk from many angles. Professor Xu Nianxing of Renmin University briefly introduced the relevant background of climate finance, commented on the paper, and put forward suggestions for further consideration from the specific research design.
Professor Yu Minggui of Zhongnan University of Economics and Law reported on the paper "Local Government Debt Financing, Crowding Out Effect and Enterprise Labor Employment". The article analyzed the impact of local government debt financing on enterprise labor employment from the perspective of the availability of enterprise credit funds and enterprise financing cost, and found that local government debt financing inhibited enterprise labor employment. It is also found that the impact mainly exists in enterprises with large financing demand, private enterprises, industries without debt capital inflow and areas with low financial development level. Local government debt financing mainly crowns out the labor servants of enterprises for doctoral students and technicians. Professor Wu Yuhui of Xiamen University made wonderful comments on the paper and put forward suggestions from the aspects of theoretical logic, research design and empirical test.
Finally, Professor Wu chaopeng, executive vice president of the school of management of Xiamen University, summarized the forum and pointed out that the forum is small and refined. It is not only a feast of ideas, but also promotes the communication between scholars. Professor Wu chaopeng finally thanked all the guests who attended the meeting online and offline again. This forum is a complete success!
