China Finance Review International: Volume 8 Issue 3

Editorial for the special issue on modern aspects of financial engineering

Ahmet Goncu

Can prospect theory explain the disposition effect? An analysis based on value function

Xiaotian Liu, Huayue Zhang, Shengmin Zhao

The prospect theory is potentially an essential ingredient in modeling the disposition effect. However, many scholars have tried to explain the disposition effect with the help of…

The mechanism and effectiveness of credit scoring of P2P lending platform: Evidence from Renrendai.com

Qiang Li, Liwen Chen, Yong Zeng

The purpose of this paper is to investigate the mechanism how the platform obtains and uses undisclosed information to determine individual borrowers’ credit score and to examine…

Analyzing and forecasting the Chinese term structure of interest rates using functional principal component analysis

Pan Feng, Junhui Qian

The purpose of this paper is to analyze and forecast the Chinese term structure of interest rates using functional principal component analysis (FPCA).

Forecast of stock price fluctuation based on the perspective of volume information in stock and exchange market

Shoudong Chen, Yan-lin Sun, Yang Liu

In the process of discussing the relationship between volume and price in the stock market, the purpose of this paper is to consider how to take the flow of foreign capital into…

Empirical differences between the overnight and day trading hour returns: Evidence from the Chinese commodity futures

Juan DU

The purpose of this paper is to provide a stable model which covers market information of return to examine the empirical differences between the returns during night and day in…

Incentive mechanisms and hedging effectiveness – an experimental study

Lu Zhang, Difang Wan, Wenhu Wang, Chen Shang, Fang Wan

The purpose of this paper is to analyze the role of four different incentives in improving hedging effectiveness and propose an alternative regulatory mechanism for China’s…