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25 January 2012, Volume 24 Issue 1    Next Issue

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The Mission of Behavioral Finance Researches under Financial Crisis: A Review Rao Yulei, Peng Diefeng and Wang Jianxin 2012, 24 (1):  3-10.  Abstract ( 2368 )   Financial crisis is often recognized as a macro concept. We usually study this topic from the perspective of macro economics. However, the aggregate fluctuations in the financial market are often triggered by the systematic behavioral bias of individuals. In this paper, we review the literature about the behavioral cause and the micro mechanism of the crisis in a systematic way. On the basis of micro behavioral mechanism, we build our review on the core of herd behavior which leads the forming and cracking of financial bubbles and even financial crisis from three dimensions: cognitive bias, financial principal-agent investment and social factors. At last, we demonstrate the perspective of behavioral finance by reconstructing the financial system and point out the trends of behavioral finance studies in the future. References | Related Articles | Metrics

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The Substitution Effect of Bank Cards and Its Impact on the Demand for Narrow Money 2012, 24 (04):  11-17.  Abstract ( 1480 )   This paper studies the effect of payment by bank card instead of cash in China, and further analyzes the impact of bank card payment on the demand for narrow money. We find that the rapid development of China’s banking card industry in recent years has brought about a sharp increase in the payment by bank card. Given the exponential relationship between bank card payment and cash in circulation, we establish a non-linear model showing the substitution of bank card for cash. Also, the impact of bank card payment on the demand for narrow money is non-linear, and we use non-parametric local polynomial fitting to establish a partially linear regression model. The two models are used for the first time for these studies and prove to be very interpretative. Related Articles | Metrics

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Study on the Level and Procedure of Regional Market Integration in Yangtze River Delta YANG Feng-Hua, WANG Guo-Hua 2012, 24 (1):  32-38.  Abstract ( 1345 )   Propelling regional economy integration in Yangtze River Delta has become a national strategy. So，constructing regional common market is essential. Based on some indicators，we can find that regional commodity market integration has formed primarily in Yangtze River Delta but regional production factors market integration has lagged behind. In order to promote regional economy integration in Yangtze River Delta deeply，we should establish regional production factor market integration gradually and efficiently. Related Articles | Metrics

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Influence of Institution’s Habit Formation to China’s Foreign Reserve 2012, 24 (1):  39-44.  Abstract ( 1261 )   The paper incorporates buffer stock model with habit formation and builds a dynamic model which contains both international payment volatility and habit formation factors. Empirical studies using survey data of china’s foreign reserve from 1996 to 2009 show that: (1) a county’s foreign reserve is a function of international payment’s uncertainty and opportunity cost, whereas there exits a long term equilibrium among the three factors mentioned above, that is to say BS foreign reserve prediction model holds good for China. (2) the bigger the parameter of habit formation becomes, the more reserve will accumulate and the less impact international payment volatility will have on reserve. (3) It is because habit formation is taken into account that the estimated elasticity of reserve holdings with respect to international payment volatility and opportunity cost becomes extremely close to the predictions of the theoretical model. Related Articles | Metrics

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Root Cause: No Reduce to Energy Consumption with the Increase of Energy Efficiency The Literature Review of Energy Rebound Effect CHA Dong-Lan, ZHOU De-Qun 2012, 24 (1):  45-51.  Abstract ( 1318 )   The energy efficiency is acknowledged as an efficient way to reduce energy consumption, save energy and mitigate pollution. It varies from different countries and regions. When calling for improving the energy efficiency, countries usually neglect the new appearance which is named energy efficiency rebound effect. That means the expected beneficial impacts from energy efficiency increase are partially offset by the increased energy demand resulting from price effect, income effect and the economy-wide effect. Researchers give alternative explanations on the existence of rebound effect and the empirical studies are also in difference due to their samples, methods and the time series. Related Articles | Metrics

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Transformation of Momentum Effect and Reversal Effect：An Empirical Research on Chinese Shenzhen A-Share Stock Market SHU Jian-Ping, XIAO Qi-Zhi, WANG Su-Sheng 2012, 24 (1):  52-57.  Abstract ( 1327 )   The paper takes the lead to study the mutual transformation of momentum effect and reversal effect, concluding that investors’ blindly conforming to public information and stronger reaction to private information are the source of periodically mutual transformation, which follows the process of “momentum (or reversal) effect emerging→strengthening→weakening→reversal (or momentum) effect emerging→strengthening→weakening→momentum(or reversal) effect reemerging”. Empirical researches show that the mutual transformation of momentum effect and reversal effect does exist in Shenzhen A-share stock market, although the length of the cycle is not constant. Related Articles | Metrics

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Dependence Model and Its Application Based on Higher Moment Volatility and Copula YI Wen-De 2012, 24 (1):  58-66.  Abstract ( 2357 )    A dependence structure model based on higher moment volatility, Copula-NAGARCHSK-M model, is proposed in this paper. The model is used to investigate the dependence structure of logarithmic returns, conditional variances, conditional skewnesses and conditional kurtosises between Shanghai and Shenzhen stock markets based on the consideration that the time-varying conditional variance risk, skewness risk and kurtosis impact on the marginal distributions. The evidences show that the dependence structures of returns, variances and kurtosises between both stock markets are similar, but the dependence structure between skewnesses is similar on the negative directional dependence. Related Articles | Metrics

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A Study on the Relationship among Entrepreneurial Competence, Innovation Types and Financing Choices in High-tech Companies MEI De-Qiang, LONG Yong 2012, 24 (1):  67-74.  Abstract ( 1459 )   Entrepreneurial competence and financing source is critically important to innovation which can help firms gain sustaining competitive advantages. In this study we analyze the relationship among entrepreneurial competence, innovation types and financing choices. An empirical research is conducted with a sample of 164 high-tech companies. The results indicate that opportunity capability is associated with radical innovative and venture capital, whereas the operational capability isconducive to incremental innovation and debt. Furthermore, radical innovation leads to venture capital but has negative impact on debt; incremental innovation leads to debt but has negative impact on venture capital. Related Articles | Metrics