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- Publisher Website: 10.1016/j.jfineco.2020.08.012
- Scopus: eid_2-s2.0-85083827231
- WOS: WOS:000617675500002
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Article: The Real Value of China’s Stock Market
Title | The Real Value of China’s Stock Market |
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Authors | |
Keywords | Capital allocation Price informativeness Market integration Global investing |
Issue Date | 2020 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec |
Citation | Journal of Financial Economics, 2020, Epub 2020-08-18 How to Cite? |
Abstract | What capital allocation role can China’s stock market play? Counter to perception, stock prices in China have become as informative about future profits as they are in the US. This rise in stock price informativeness has coincided with an increase in investment efficiency among privately owned firms, suggesting the market is aggregating information and providing useful signals to managers. However, price informativeness and investment efficiency for state-owned enterprises fell below that of privately owned firms after the postcrisis stimulus, perhaps reflecting unpredictable subsidies and state-directed investment policy. Finally, evidence from realized returns suggests Chinese firms face a higher cost of equity capital than US firms. |
Persistent Identifier | http://hdl.handle.net/10722/286057 |
ISSN | 2023 Impact Factor: 10.4 2023 SCImago Journal Rankings: 13.655 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Carpenter, JN | - |
dc.contributor.author | Lu, F | - |
dc.contributor.author | Whitelaw, RF | - |
dc.date.accessioned | 2020-08-31T06:58:29Z | - |
dc.date.available | 2020-08-31T06:58:29Z | - |
dc.date.issued | 2020 | - |
dc.identifier.citation | Journal of Financial Economics, 2020, Epub 2020-08-18 | - |
dc.identifier.issn | 0304-405X | - |
dc.identifier.uri | http://hdl.handle.net/10722/286057 | - |
dc.description.abstract | What capital allocation role can China’s stock market play? Counter to perception, stock prices in China have become as informative about future profits as they are in the US. This rise in stock price informativeness has coincided with an increase in investment efficiency among privately owned firms, suggesting the market is aggregating information and providing useful signals to managers. However, price informativeness and investment efficiency for state-owned enterprises fell below that of privately owned firms after the postcrisis stimulus, perhaps reflecting unpredictable subsidies and state-directed investment policy. Finally, evidence from realized returns suggests Chinese firms face a higher cost of equity capital than US firms. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec | - |
dc.relation.ispartof | Journal of Financial Economics | - |
dc.subject | Capital allocation | - |
dc.subject | Price informativeness | - |
dc.subject | Market integration | - |
dc.subject | Global investing | - |
dc.title | The Real Value of China’s Stock Market | - |
dc.type | Article | - |
dc.identifier.email | Lu, F: lufz@hku.hk | - |
dc.identifier.authority | Lu, F=rp02692 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jfineco.2020.08.012 | - |
dc.identifier.scopus | eid_2-s2.0-85083827231 | - |
dc.identifier.hkuros | 313314 | - |
dc.identifier.volume | Epub 2020-08-18 | - |
dc.identifier.isi | WOS:000617675500002 | - |
dc.publisher.place | Netherlands | - |
dc.identifier.issnl | 0304-405X | - |