Through literature research, theoretical research and empirical research, this paper focuses on key issues such as what role policy-based finance can play in enterprises' technology innovation, how to play the role, and existing shortcomings and constraints. Policy-based finance refers to the financial means adopted by a country's government in order to achieve specific policy objectives such as industrial policies, that is, giving preferential treatment in terms of interest rates, loan terms, guarantee conditions, etc., and selectively funding with a view to cultivating specific strategic industries. In 2015, in order to promote the development of the manufacturing industry, China released the 2015-2025 Strategic Top-level Plan for China's Manufacturing Industry (the "Made in China 2025" strategy). According to the ten key areas in the "Made in China 2025" strategy, this paper selects listed companies in the advanced manufacturing industry on China's RMB common stock market during 2011 to 2019 as a sample, and empirically analyzes the role of policy-based finance in supporting enterprise technology innovation input and output. Meanwhile, this paper examines whether enterprise heterogeneity, including property right nature, enterprise size, and enterprise age, significantly impacts policy-based financial support for enterprise innovation, so as to analyze policy-based financial support for different types of enterprises. / Business Administration/Finance

My dissertation studies the evolution and role of short selling activity in financial markets. My first essay examines the cross-sectional and time-series variations in the characteristics of equity lending market in the setting of IPO, where, as suggested by Duffie et al. (2002), search frictions are likely to be high. I find that the initial supply of lendable shares and short interest levels increase with offer size, while initial lending fees decrease with offer size. The initial lending fees are also positively related to the bargaining power of lenders and negatively related to the bargaining power of borrowers. The supply of lendable shares and short interest level both increase following the IPO. The growth rate in short interest over time is negatively related to time since IPO. The increase in supply of lendable shares is positively related to the public float as well as the contemporaneous and lagged changes in institutional ownership, especially for institutional investors who engage in lending and short selling. Moreover, the supply of lendable shares increases as private equity firms and venture capital investors exit the stock and the share float increases. The increase in float is accompanied by a reduction in the cost of borrowing. IPOs with high lending fees tend to have low subsequent returns, which together with the rest of the findings, provide support for the ideas in Duffie et al. (2002) and highlight the importance of search frictions in equity lending market. Using detailed daily short interest data for U.S. common stocks over the period of 2006 to 2017, my second essay examines short selling activities around earnings announcements and their impact on stocks prices. Stocks with high short interest, large changes in short interest, more covered shorts, or more new short positions prior to earnings announcements have stronger price reactions to earnings news and much weaker post-earnings-announcement drifts (PEADs). Trades by short sellers during earnings announcements are consistent with the earnings surprises as well as announcement-period returns. However, these trades do not predict post-earnings-announcement drifts. The results suggest that on average short sellers do not actively trade on earnings-related iiinews or anomalies, but their information acquisition and trading activities help improve price discovery during earnings announcements.

No description available.

No description available.

No description available.

No description available.

This thesis examines topics in corporate finance and behavioral finance. First, I examine the effects of ownership structure on the amount of firm-specific information in stock prices, measured using synchronicity. With a unique dataset of 6,184 firm-year observations for Canadian companies listed on the Toronto Stock Exchange during 2000-2012, I find evidence of a significant, non-linear relationship between the size of the largest shareholder and synchronicity. Using propensity score matching (PSM) to isolate the effect of family firms on synchronicity, I find no evidence of a significant difference in synchronicity for matched pairs of family and non-family firms. Finally, I find evidence of a negative relationship between firms with multiple large controlling shareholders and synchronicity. Second, in a co-authored paper with Dr. Richard Deaves (McMaster University) and Dr. Brian Kluger (University of Cincinnati) we investigate the relationship between path-dependent behaviors (i.e., the disposition effect, house money effect and break-even effect) and investor characteristics (e.g., overconfidence and emotional stability) using experimental trading sessions. The majority of our subjects exhibit path-dependent biases and there are significant correlations between these biases. The correlations hint at the possibility that a common underlying factor may be driving all path-dependent behaviors. We also find some evidence that the existence of psychological bias (overconfidence and negative affect) leads to more bias in financial decision-making. Third, in co-authored work with Dr. Lucy Ackert (Kennesaw State University), Dr. Richard Deaves (McMaster University) and Dr. Quang Nguyen (Middlesex University) we report the results of an experiment designed to explore whether both cognitive ability (IQ) and emotional stability (EQ) impact risk preference and time preference in financial decision-making, finding evidence in support. Specifically, IQ impacts risk preferences and EQ impacts time preferences. Our results are primarily driven by our male participants. Most interestingly, EQ plays a role that is almost as meaningful as IQ when it comes to explaining preferences. / Thesis / Doctor of Philosophy (PhD)

<p>This dissertation consists of two essays investigating participation effects in household financial decisions. In the first essay, entitled "Household Mortgage Choice and Mortgage Market Participation," I empirically study a household's choice of an adjustable rate mortgage (ARM) over a fixed rate mortgage (FRM) across time. This decision has been investigated in the cross-section previously, but to date, no one has studied how a household's choice of mortgage contract type changes as they gain experience in the mortgage market. This study investigates whether mortgage market participation has a systematic effect on the choice of an ARM vs. an FRM within a household. Using the Panel Study of Income Dynamics (PSID) and the Survey of Consumer Finances (SCF), I document a novel stylized fact: a household's propensity to choose an adjustable rate ARM over an FRM increases with the number of previous mortgages the household has used. Households do not choose an ARM due to budget or liquidity constraints when increasing housing consumption; nor is the observed pattern of increased propensity to choose an ARM with mortgage market participation explained by the simultaneous relaxation of budget constraints as homeowners participate in the mortgage market. Stabilization of a household's income stream and rising home prices are also ruled out as the source of increasing ARM choice propensity with greater utilization of mortgages, as is expected length of tenure. Evidence is presented supporting the hypothesis that households learn about mortgage products by participating in the market.</p><p>In the second essay, entitled "Participation Effects in Refinancing Decisions", I investigate household refinancing decisions in the context of market participation. Using optimal refinance interest rate differentials as derived in Agarwal, Driscoll and Laibson (2013), I document an important participation effect in the Panel Study of Income Dynamics, whereby households with greater mortgage market participation, as measured by previous mortgages used, are more likely to refinance optimally. This result is robust to potential liquidity constraints, where the household fails to refinance due to an inability to pay any fixed costs associated with the transaction. Participation effects persist even when controlling for the potential of equity extraction as the primary motivation for refinancing. These results are consistent with an information acquisition model, whereby households gain knowledge and understanding of financial transactions by participating in financial markets.</p> / Dissertation

Thesis (M.S.)--University of Wisconsin--Madison, 1973. / eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references.

abstract: Informal finance in this paper refers to the financing activities of individuals or households to borrow money through channels other than formal financial institutions such as commercial banks. Using data from China Household Finance Survey (CHFS) conducted by Southwestern University of Finance and Economics (SWUFE) and the People's Bank of China, this paper employs Probit model to analyze the factors that may influence the financing needs of Chinese households and factors that influence their likelihood of obtaining loans from formal financial institutions versus from informal channels. Results show that household wealth, family structure, and household head’s characteristics are the major factors that influence their financing needs. Moreover, the results suggest that (a) richer families are more likely to obtain loans from formal financial channels while poorer families are more likely to do so from informal channels; (b) families with stronger social ties are more likely to obtain loans from formal financial channels, but this relationship is weaker in regions where the financial market is more competitive;and (c) the increase of formal financial services is positively related to the probability of households obtaining formal finance, but has no relationship with the probability of households obtaining informal finance. These findings have important implications for finance policy making. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2016