Journal of Finance and Economics is supervised by Ministry of Education of PRC, and sponsored by Shanghai University of Finance and Economics. It aims to include research results on the major theories and practical problems in China’s reform and opening up and modernization of economic construction. Its scope covers all the major fields of Economics, including Public Economy, Finance, Accounting, Economic history, Regional Economics, Industrial Economics, International Economics. The Journal is included in CSSCI.
Since the close social ties and economic exchanges among immediate family members of multiple generations are the important characteristics of family culture in China, the elderly are of significant social value in family care-giving. This paper, with reference to the data from China Family Panel Studies (CFPS) of 2010, 2012 and 2014, constructed panel models and empirically analyzed the influences of elderly parents’ activities of taking care of grandchildren and helping with housework on adult children’s labor supply. The results show that elderly parents’ activity of taking care of grandchildren significantly improved their adult children’s labor supply, in which male’s labor participation rate increased by 6.3%, and that of female increased by 14.3%, with the increase range of the work time of the latter much greater than that of the former. Moreover, the activity of taking care of grandchildren had a greater influence on the labor participation rate of rural residents than on that of urban residents, and its influence on the employment of urban residents was mainly reflected on the work time. Such heterogeneity was caused by unequal public services as well as differences in employability and job nature. From the perspective of the influence of the elderly on youth labor, this paper confirmed the social value of the elderly and explained why Chinese women had the conditions to work harder from a side.
Against the background of the new normal, entrepreneurship of returned rural migrant workers has increasingly become public concern. Based on CHIP micro-survey data, in this paper we systematically evaluated the impact of Migrant working experience on self-employment of returned rural migrant workers. This study found that migrant working experience significantly increased the probability of farmers’ self-employment. After addressing endogenous issues such as missing variables and spillover effect, we found that the results are still robust. Based on the preliminary conclusion, we also empirically tested the intermediary role of social capital. It was found that, compared with local farmers left behind, farmers with Migrant working experience have more extensive social networks and easier access to venture capital, client resources and business licenses. In addition, we further examined the heterogeneous impact of Migrant working experience on different types of self-employment. Specifically, Migrant working experience have a significant impact on entrepreneurship projects with small-scale initial investment and development-oriented entrepreneurship projects, without a significant impact on entrepreneurship projects with large-scale initial investment and survival-oriented entrepreneurship projects. This research not only helps account for the huge differences in entrepreneurial decision-making among different types of farmers, but also provides theoretical basis for current governmental support of self-employment of returned rural migrant workers.
To increase farmers’ income and narrow the income gap between urban and rural residents in China, it is an important to realize common prosperity. However, because of the slowing-down increase in farmers’ income, some schemes should be taken to broaden income sources, tap latent potentialities and cultivate new points of income growth. With the development of industrialization and urbanization, non-farm income that exceeds agriculture income has mainly accounted for the proportion of farmers’ income. Due to the Chinese household registration system, most farmers devote themselves to part-time business to maximize income. How does the business behavior have an influence on non-agricultural income? Based on the literature review of part-time business behavior and non-farm wage income, it could be found that most studies focus on part-time business or non-farm wage income, and have no systematic review of their relationship. Therefore, this paper investigates the effect of farmers’ part-time employment behavior on non-farm wage income, and aims to improve existing research and provide further research ideas. In order to achieve the above objectives, this paper puts forward two following hypotheses: Firstly, part-time business behavior would not only reduce farmers’ non-agricultural income, but also cut down hourly wage level. Secondly, individual characteristics, career choices and part-time business behavior would be factors that play the important roles in farmers’ non-farm wage income. Moreover, the part-time business behavior is the main factor that causes wage income gap between farmers with combined occupations and farmers who only are busy with non-agricultural jobs. Then, according to China Family Panel Studies (CFPS) in 2012, this paper empirically studies these effects by using treatment effects model and income decomposition method. Results show that part-time business would significantly reduce farmers’ wage income and actual hourly wages. In addition, it shows that the discrimination effect caused by part-time behavior is the main reason for non-farm income gap between farmers with combined occupations and ones who only are busy with non-agricultural jobs. Therefore, the implementation of policies to promote farmers’ income should be aimed at improving policy accuracy, such as striving to break institutional constraints represented the household registration system, encouraging farmers to transfer to non-agricultural sectors, and deepening supply-side agricultural reform to improve the land property income and increase farmers’ gross income.
China’s Securities Regulatory Commission (CSRC) launched the pilot of margin trading business in March 2010, which means the end of the history of “unilateral market” in Chinese stock market, and after that, the business of margin trading developed rapidly. The changes in the margin trading and short selling mechanisms and resulting market impacts attract widespread attention and research. From the perspective of earnings announcement, instead of mechanism changes, this paper analyzed the short-term margin trading and motivations. Specifically speaking, according to Christophe et al. (2004), based on annual reports published by listed companies, we examined whether there is abnormal margin trading before the release of the earnings announcement, and whether such abnormal transaction is informed or speculative trading. In addition, through the indexes based on post earnings announcement drift (PEAD) and book value (BM), we analyzed the impacts of fundamental investment strategy. The results showed that there are abnormal margin trading and short selling before earnings announcement. What is more, we further analyzed the relationship between abnormal trading before earnings announcement and stock returns after the earnings announcement. The results showed that there is no significant correlation between abnormal margin trading and stock returns after the announcement, indicating that the margin trading is speculative trading. However, abnormal short selling is significantly negatively related to stock returns after the announcement, especially when it comes to the negative news, which indicates that the short selling is informed trading. The fundamental investment strategy has no impacts as for our findings. Compared with the current literature (e.g., Xu and Chen, 2012; Li et al., 2014; Xiao and Kong, 2014; Li et al., 2015; Chu and Fang, 2016; Tang et al., 2016; Hu and Xia, 2017), our contributions are as follows. First, the current literature focused on the mechanism changes in margin trading and related impacts, and seldom involved investor trading. This paper studied margin trading behavior and related motivations, thereby revealing how the mechanism changes impact the market through investor behavior. Second, the current literature studied the mechanism changes in short selling and market impacts, but because of availability limitation of short selling stocks, asymmetry between margin trading and short selling is prominent. We believe that it is unreasonable to just focus on short selling, while it neglects the more important behavior of margin trading. In this paper, we studied margin trading and short selling at the same time, and revealed the different motivations behind them. These findings revealed the heterogeneous motivations behind margin trading and short selling in Chinese stock market, and are of policy importance to the regulation and development of margin trading.
