scholarly journals Margin Trading Program, External Profit Pressure and Enterprise Financialization—A Quasi-Natural Experiment Based on Double Difference Model

2022 ◽  
Vol 14 (2) ◽  
pp. 711
Author(s):  
Shuiwen Gao ◽  
Haifeng Gu ◽  
Habiba Halepoto
Keyword(s):  
Natural Experiment ◽  
Dominant Role ◽  
Earnings Forecasts ◽  
Listed Companies ◽  
Double Difference ◽  
Policy Uncertainty ◽  
Real Economy ◽  
The Real ◽  
The Difference ◽  
Trading Program

Based on the urgent need of the real economy to “get away from fictitious to substantial”, this paper constructs a quasi-natural experiment based on the margin trading program gradually implemented in China in 2010 and studies the influence of the margin trading program on the financialization level of the target company by using the difference-in-difference method. The results show that, because of the dominant role of financing transactions in margin trading programs in China’s capital market, financing transactions drive up the share prices of listed companies, which leads to an excessive easing of the financing constraints of listed companies and short-sighted behavior of executives, which has a significant role in promoting enterprise financialization. Moreover, the driving effect is more significant in state-owned enterprises, enterprises with a high degree of financing constraint, and enterprises with a low degree of marketization. Economic policy uncertainty will restrain the positive effect of margin trading programs on enterprise financialization through information and governance mechanisms. In contrast, the “branding” effect caused by the financial connection of senior executives will intensify the positive relationship between margin trading programs on enterprise financialization levels. When considering the intermediary effect, we find that the margin trading program will result in the optimistic deviation of analysts’ earnings forecasts and cause the external profit pressure of enterprises, thus increasing the financialization trend. This study is of great theoretical significance and practical value for evaluating the policy effect of the margin trading program, improving this policy, investigating the influencing factors of enterprise financialization, and promoting the real economy to move from fictitious to substantial.

Investor sentiment, market competition and trade credit supply

2019 ◽  
Vol 9 (2) ◽  
pp. 284-306
Author(s):  
Hongbin Huang ◽  
Ran Li ◽  
Ya Bai
Keyword(s):  
Trade Credit ◽  
Market Competition ◽  
Investor Sentiment ◽  
Real Economy ◽  
Content Type ◽  
The Real ◽  
Credit Supply ◽  
Virtual Economy ◽  
The Difference ◽  
The Impact

Purpose The purpose of this paper is to study the influence of investor sentiment on the supply of trade credit, and further explores the difference of the effect of investor sentiment on the supply of trade credit in the environment of strong market competition and weak market competition. Design/methodology/approach The authors use panel estimation techniques to examine the impact of investor sentiment in the Chinese securities market on the supply of corporate trade credit. Findings This paper finds that investor sentiment has positive impact on trade credit through three channels of motivation, willingness and ability. At the same time, this paper finds that investor sentiment has stronger impact on enterprises in strong market competition than enterprises in weak market competition. Research limitations/implications This paper expands the research on the influence of virtual economy on the real economy, analyzes the difference of the influence of investor sentiment on the supply of trade credit under different market competition conditions. Practical implications The paper perfects the mechanism of trade credit decision-making at this stage, and provides more evidence for the virtual economy to act on the real economy. Social implications This paper provides a theoretical basis for the government functional departments to use the investor sentiment to play a positive role in trade credit to improve the market competition and guide the development of China’s capital market in the direction of rationalization and health. Originality/value In combination with market competition environment and industry characteristics, this paper investigates external irrational factors and studies how investor sentiment affects trade credit supply.

scholarly journals Policy Uncertainty, Lender of Last Resort and the Real Economy

2021 ◽  
Author(s):  
Martina Jasova ◽  
Caterina Mendicino ◽  
Dominik Supera
Keyword(s):  
Policy Uncertainty ◽  
Real Economy ◽  
Lender Of Last Resort ◽  
The Real

Critical Success Factors in Russian R&D Projects in the Real Economy

2010 ◽  
pp. 41-61
Author(s):  
V. Andreev
Keyword(s):  
Empirical Research ◽  
Critical Success Factors ◽  
Success Factors ◽  
Innovation Process ◽  
Real Economy ◽  
Key Factors ◽  
Industrial Products ◽  
Successful Development ◽  
The Real ◽  
Critical Success

The article discusses the concept of "success" in relation to innovative business and its performance. The quantity of innovative projects that can consistently overcome the stages of the innovation process to achieve the desired result is defined. The author presents the results of empirical research of successful and unsuccessful projects of leading Russian innovative companies in various industries, identifies key factors of successful development of new industrial products.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

ANALYTICAL INDICATOR. ANALYSIS OF THE REAL STATE OF DYNAMICS OF MORTALITY OF THE POPULATION OF RUSSIA FROM MALIGNANT TUMORS AND CHANGES IN ITS STRUCTURE

2019 ◽  
Vol 65 (2) ◽  
pp. 205-219 ◽  
Author(s):  
V. Merabishvili
Keyword(s):  
Malignant Tumors ◽  
Specific Weight ◽  
Mortality Rates ◽  
Retirement Age ◽  
Medium Term ◽  
Age Composition ◽  
The Real ◽  
Indicator Analysis ◽  
The Difference ◽  
Real State

The mortality rate is one of the most important criteria for assessing the health of the population. However, it is important to use analytical indicators correctly, especially when evaluating time series. The value of the “gross” mortality is closely linked with a specific weight of persons of elderly and senile ages. All international publications (WHO, IARC, territorial cancer registers) assess the dynamics of morbidity and mortality only by standardized indicators that eliminate the difference in the age composition of the compared population groups. In Russia, from 1960 to 2017, the share of people of retirement age has increased more than 2 times. The structure of mortality from malignant tumors has changed dramatically. The paper presents the dynamics of gross and standardized mortality rates from malignant tumors in Russia and in all administrative territories. Shows the real success of the Oncology service. The medium-term interval forecast until 2025 has been calculated.

U.S. Financial Markets Growth and the Real Economy

2013 ◽  
Author(s):  
Claire Y. C. Liang ◽  
David McLean ◽  
Mengxin Zhao
Keyword(s):  
Financial Markets ◽  
Real Economy ◽  
The Real
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