The dynamics of listed SMEs in China

We examine the dynamics of Chinese listed SMEs with respect to their post-market viability and growth after going public. The Kaplan–Meier estimation shows that SMEs are more likely to transition to a non-viable state than large firms. Further examination using the Cox model and the random effects model shows that SME dynamics are shaped by heterogeneous firm and industry characteristics, as well as the underlying financial and institutional environments. SME viability is distinguished by its ability to grow through learning along with age, aided by lower business risk, more focused business, access to equity finance, and less exposure to competition in remote regions. SME growth is constrained by a dispersed ownership structure, insufficient infrastructure to protect firms that are active in R&D, and the limited financing role of equity markets. The study also reveals that government initiatives in support of strategic development in the service industries and in the coastal regions are of importance in spurring SME growth

The recent slowdown of bank lending in Spain : are supply-side factors relevant?

Using information of the balance sheets of Spanish banks between 1995 and 2009, we estimate the average impact of current and anticipated changes in banks’ capital on fi rm lending. We isolate the role of credit supply factors using the variation in capital growth associated to the bank-specifi c historical exposure to real estate development –measured 10 years before the outburst of the fi nancial crisis- and its interaction with the change in housing prices in the provinces where they operate. We further control for the quality of borrowers by using industry fi xed effects. Our main results suggest fi rstly that lagged exposure to real estate development and its interaction with prices explain banks’ capital growth and the overall doubtful loans ratio after 2008 – in turn, a determinant of anticipated changes in capital. And, secondly, that the deterioration of banks’ capital position has had a negative, although of a limited magnitude, effect on the supply of loans to non-construction fi rms. Our interpretation is that banks that have experienced capital shortfalls or banks that have increased their capital but without reaching the level that is demanded by fi nancial markets might have had no option but to reduce their lending. The relatively small magnitude of credit supply factors may be explained by the weakness of loan demand in a context of a deep recessionEste trabajo utiliza información desagregada de los balances de las entidades bancarias españolas desde 1995 hasta 2009 para estimar el efecto del crecimiento del capital bancario sobre la evolución del crédito a empresas, distinguiéndose entre el efecto de cambios efectivos y anticipados en el capital. Con el fi n de aislar el efecto de factores asociados a la oferta de crédito, se utilizan los cambios en el capital bancario que están vinculados a la exposición histórica de cada entidad al sector de promoción inmobiliaria (aproximada por el promedio de la exposición e el período 1995-1997) así como a su interacción con el precio de la vivienda en las provincias en las que operan las entidades bancarias. Con el fi n de acomodar la heterogeneidad en la solvencia de la demanda de crédito, se incluyen en las especifi caciones efectos fijos de industria y año. Los resultados sugieren, en primer lugar, que las entidades tradicionalmente más expuestas al sector de promoción inmobiliaria experimentaron en 2009 un menor crecimiento de su capital y, después de 2008, un mayor crecimiento de la tasa de morosidad. En segundo lugar, estas entidades redujeron su oferta de crédito a sectores no relacionados con la construcción, si bien la magnitud de dicha reducción fue limitada. Los resultados sugieren que las entidades que experimentaron disminuciones en su capital —o que lo aumentaron en menor medida que lo exigido por los mercados financieros— contrajeron su oferta de crédito, aunque de forma modesta. La pequeña magnitud del efecto puede deberse a la debilidad de la demanda de crédito durante la recesió

First Home Ownership

The terms of reference for the inquiry on First Home Ownership asked the Commission to evaluate the affordability and availability of housing for first home buyers. The Commission’s preliminary findings were released for public comment in December. In its final assessment, the Commission maintained that there was no ‘quick fix’ to make housing more affordable for first home buyers. To the extent that currently low affordability reflects cyclical pressures, the situation would improve over time. However, the Commission identified a number of policy areas that can serve to exacerbate price pressures over the cycle.Building industry; Building societies; Construction industry; Families; Family; Finance; Finance companies; First home owners; Goods and Services tax (GST); Home finance; Home loans; Housing; Interest rates; Land title; Mortgages; Planning; Rent; Rental properties; Residential land; Stamp duty;

Continuous Disclosure for Australian Listed Companies

ABSTRACT This thesis investigates the legal and theoretical basis of continuous disclosure regulation in Australia as it applies to listed companies. An empirical study is undertaken to further investigate the operation of the legislation. As part of the Enhanced Disclosure regime, the continuous disclosure provision was effective from 5 September 1994 as s1001A of the Corporations Law, now the Corporations Act 2001 (Cth). This statutory provision is replaced by s674, inserted by Schedule 2 to the Financial Services Reform Act 2001 (Cth), and effective from 11 March 2002. The provision reinforces Australian Stock Exchange (ASX) listing rule 3.1. The rule requires a listed disclosing entity to notify ASX immediately of information that would be expected to have a �material effect� on the share price of the company. However, the disclosure requirement is weakened by a number of specific exemptions or �carve-outs� to listing rule 3.1. If a reasonable person would not expect the information to be disclosed, and if the confidentiality of the information is maintained, then disclosure is not mandatory in special circumstances. This study analyses 427 query notices, issued by ASX to listed companies from July 1995 to April 1996. The queries request information concerning unexplained movements in a company�s share price or a failure to comply with the listing rules. An analysis of the companies� replies to these notices provides a profile of the type of company that is likely to be queried. The study also attempts to evaluate the extent to which these companies have relied on the �carve-outs� as an exemption to the regulation