Corporate Governance and Corporate Performance: Some Evidence from Newly Listed Firms on Chinese Stock Markets

This paper is concerned with some corporate governance issues related to newly listed firms in China based on a sample of 329 firms commencing listing on Shanghai Stock Exchange (SHSE) and Shenzhen Stock exchange (SZSE) during the period from 1998 to 2000. We first investigate the impact of ownership change due to stock market listing on corporate performance. We consider four aspects of corporate performance: profitability, sales, leverage and employee productivity. Our research results indicate that, on average, profitability, sales and employee productivity have improved from pre-listing to post-listing. We further investigate the impacts of state majority control, foreign ownership and regulation effects on corporate performance. Overall, this paper provides some new evidence on the listing effect, ownership structure and regulation effect on Chinese firms which will be valuable to the future reform of state owned enterprises in China.State owned enterprise, corporate governance, and corporate performance

A New Assessment of the Chinese RMB Exchange Rate

The ratio, Penn effect and behavioral equilibrium exchange rate (BEER) are used to assess the level of the bilateral real exchange rate (RER) of the Chinese RMB against the US dollar in 1980–2012. The statistical indexes and economic meaning indicate that the findings from the BEER and ratio model are more reasonable. Based on the two models, the RMB was overvalued by 10–20% in 2011–2012. Given the already overvalued currency and the not-ideal economic situation of China, such a fast RER appreciation of 6.6–6.7% per year as it was in 2005–2012 is not sustainable. Further, corresponding policy proposals are given

A New Assessment of the Chinese RMB Exchange Rate

The ratio, Penn effect and behavioral equilibrium exchange rate (BEER) are used to assess the level of the bilateral real exchange rate of the Chinese RMB against the US dollar in 1980–2012. The statistical indexes and economic meaning indicate that the findings from the BEER and ratio models are more reasonable. Based on the two models, the RMB was overvalued by about 10–20% in 2011–2012. Given the already overvalued currency and the not-ideal economic situation, China should (1) control its excessive money supply to suppress the purchasing power parity rate appreciation and (2) keep the level of the nominal exchange rate stable

A New Assessment of the Chinese RMB Exchange Rate

The ratio, Penn effect and behavioral equilibrium exchange rate (BEER) are used to assess the level of the bilateral real exchange rate (RER) of the Chinese RMB against the US dollar in 1980–2012. The statistical indexes and economic meaning indicate that the findings from the BEER and ratio model are more reasonable. Based on the two models, the RMB was overvalued by 10–20% in 2011–2012. Given the already overvalued currency and the not-ideal economic situation of China, such a fast RER appreciation of 6.6–6.7% per year as it was in 2005–2012 is not sustainable. Further, corresponding policy proposals are given

Replication Data for: Determinants of Income Inequality: Evidence from 27 Emerging Market Economies

This dataset is used to replicate the main results in paper: Determinants of Income Inequality: Evidence from 27 Emerging Market Economie

Transmission effects of foreign exchange reserves on price level: Evidence from China

We investigate the transmission effects of foreign exchange reserves on price level in China by utilizing a nonparametric model. First of all, we employ VAR co-integration analysis to obtain the number of lagged periods in every stage. And then we estimate the elasticity of foreign exchange reserves to money supply and the elasticity of money supply to consumer price index respectively with nonparametric estimations. Finally we use the results from nonparametric estimations to calculate the cross elasticity of foreign exchange reserves to consumer price index. We find that an increase in foreign exchange reserves will lead to an increase in money supply, which in turn will result in an increase in price level. (C) 2012 Elsevier B.V. All rights reserved

The Making of Optimal and Consistent Policy: An Analytical Framework for Monetary Models

This paper shows that optimal policy and consistent policy outcomes require the use of control-theory and game-theory solution techniques. While optimal policy and consistent policy often produce different outcomes even in a one-period model, we analyze consistent policy and its outcome in a simple model, finding that the cause of the inconsistency with optimal policy traces to inconsistent targets in the social loss function. As a result, the central bank should adopt a loss function that differs from the social loss function. Carefully designing the central bank s loss function with consistent targets can harmonize optimal and consistent policy. This desirable result emerges from two observations. First, the social loss function reflects a normative process that does not necessarily prove consistent with the structure of the microeconomy. Thus, the social loss function cannot serve as a direct loss function for the central bank. Second, an optimal loss function for the central bank must depend on the structure of that microeconomy. In addition, this paper shows that control theory provides a benchmark for institution design in a game-theoretical framework