Editorial

Citation

Yu, Q. (2015), "Editorial", China Finance Review International, Vol. 5 No. 2. https://doi.org/10.1108/CFRI-02-2015-0010

Editorial

Article Type: Editorial From: China Finance Review International, Volume 5, Issue 2

The year 2015 will witness that the global financial markets may have some fundamental changes against a backdrop of the USAs resuming economy and still-struggling continental European market. Meanwhile, it is also increasingly interesting for both academia and practitioners to get a deep understanding of China’s enormous yet premature market. To facilitate the comprehension of both matured markets and emerging ones, the current issue of China Finance Review International published five papers. Since these researches are diverse and cover wide range of interests, they shed some lights on the topics addressed.

The first two papers focus on China’s financial market. The one entitled “Statistical correlation properties of the SHIBOR interbank lending market” examines the correlation properties of the SHIBOR interbank lending market. To be an original work on the study, it which allows us to know how the SHIBOR panel banks behave in different market periods. The second paper is called as “Stock returns and volatility dynamics in China: does the control of state-owned enterprises (SOEs) matter?”. This paper studies the nature of equity ownership of state-owned enterprises (SOEs) and the dynamics of stock returns and volatility over 2,000 listed firms in China. It reveals that SOEs dominate the Chinese stock markets and distinguishes areas on which central SOEs and local SOEs focus. In examining the behavior of stock returns the authors offer several interesting observations which are different from matured markets.

The following two papers are empirical studies from international perspective. The third one is entitled as “Firm value, spatial knowledge flow, and innovation: evidence from patent citations”. Based on over three million US patents granted between 1963 and 1999 to more than 175,000 assignees and over 16.5 million patent citations from 1976 to 1999, it shows that geographic location of research-intensive firms plays a vital role to generate new research and products which will in turn affect firm value. This study empirically tests for pharmaceutical firms and their relevant patents, providing a few findings which may reveal insights of the US R&D-intensive industries and draw attention from intrinsic-value finders. “Shareholder protection, creditor rights and bank dividend policies” is the fourth paper. It uses a bank data from 52 countries over the period 1998-2007 to test for the relations between legal institutional variables, and dividend payout amounts and propensity to pay dividends, respectively. It discovers a few unique outcomes, which are worthwhile for researchers as well as regulators to reflect drawbacks of long-practiced policies.

Finally, the last paper returns to China’s market. It is called as “Monitoring or tunneling by large shareholders: evidence from China private listed companies”. This paper analyzes linkage between ownership concentration and company performance in China private listed companies. It delivers some valuable empirical findings which may spur readers to explore further interpretations for the results presented.

Qiao Yu