Using Chinese provincial data from 1985 to 1998 and applying recent GMM techniques developed for dynamic panels, this paper examines how the development of financial intermediation influences China’s economic growth during the post-1978 reform period. Our econometric results show that China’s financial intermediation development contributes to its rapid economic growth through two channels: the...

We propose a new methodology for the valuation problem of financial contingent claims when the underlying asset prices follow a general class of continuous Itô processes. Our method can be applicable to a wide range of valuation problems including contingent claims associated with stocks, foreign exchange rates, the term structure of interest rates, and even their combinations. We illustrate ou...

Investigating the characteristics of urban expansion is helpful in managing the relationship between urbanization and the ecological and environmental issues related to sustainable development. The Defense Meteorological Satellite Program/Operational Line-scan System (DMSP/OLS) collects visible and near-infrared light from the Earth’s surface at night without moonlight. It generates effective t...

It is very important for enterprises to know how much financial risks themselves can bear, which is benefit for enterprises to avoid financial risks turning into financial crisis. How to recognize and evaluate financial risks become the most significant problem when operate enterprises. At the same time, make good use of financial risks also become an important content of the risk management ob...

This paper estimates/calibrates a growth model with endogenous financial structure using household data from Peru. The idea is to feature the role of financial infrastructure in generating GDP growth and increasing inequality as observed in Peru during the 1990’s through the lens of an economic model of households’ saving/investment decisions. The typical approach to estimate the contribution o...

Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. However, firms typically also need external finance to finance the costs of market entry. In addition to productivity-related real barriers, financial constraints may thus restrict market entry. Building on a model of multinational firms facing real and f...

This paper investigates a sample of 100 MSEs across Guangdong province in China through a questionnaire survey to examine capital structures at start-up and expansion stages and characteristics of business, and herein tests theories in the context of financial management. Our findings provide substantial support for the pecking order theory and the financial growth cycle model. Results also exp...

I combine two fields of research on default prediction by empirically testing a bankruptcy prediction function where unlisted firms are evaluated on the basis of both their financial statement analysis and the macroeconomic environment. This combination is found to improve the default prediction compared to financial statements alone. The GDP-gap, a production index and the money supply M1 in c...