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Prof. Haitian LU is a Professor in law and Finance at the School of Accounting and Finance. He is also the Director of Chinese Mainland Affairs Office of the Hong Kong Polytechnic University. He is also the deputy director of the Center for Economic Sustainability and Entrepreneurial Finance (CESEF) at the Hong Kong Polytechnic University. Prof. Lu obtained his Ph.D in law from National University of Singapore, Master of Law from Liverpool University and Bachelor of Law from Nanjing University. During January to June 2016 he was visiting research professor at New York University Stern School of Business. Prof. Lu’s teaching and research interest centers on the legal development, corporate governance, and corporate social responsibilities in Hong Kong and mainland China. He is the author / co-author of the books Secured Finance Law in China and Hong Kong (2010 Cambridge University Press), Truths and Half Truths: China’s Socio-Economic Reforms 1978-2010 (2011 Chandos Publishing), and The Role of China in Global Dirty Industry Migration (2008 Chandos Publishing). Prof. Lu published widely in law, finance, economics and management journals.
In this paper, we aim to study the relation between the marketization level in the western region of China and its economic development, and to provide policy guidance for the economic development of underdeveloped regions. Mixed methods data analysis was conducted using panel data from 82 prefecture-level cities in west China from 2003 to 2017. The overall regression results show that the level of marketization has a significant role in promoting economic growth. At the same time, regional heterogeneity analyses show that the sub-indicators of marketization have different degrees of influence on economic growth in the southwest and northwest of China, whereas the overall level indicator plays a significant role in both regions. In addition, the threshold panel model was used to test whether the influence of marketization on economic growth in the western region had interval characteristics. Through the self-sampling method, it was found that there are double thresholds. In terms of the gradual progress of the marketization level range, it shows a trend of first increasing, then decreasing and then increasing again. The results show that the level of marketization in west China has significantly promoted the economic development of the western region. Additionally, the impact of marketization on economic development in relatively backward regions is gradually increasing and surpassing that of relatively developed regions. Underdeveloped areas in west China can stimulate their advantages by continuously promoting the construction of marketization and improving the level of economic organization, so as to gradually narrow the development gap between regions.
Tingying Chen; Haitian Lu; Rong Chen; Lina Wu. The Impact of Marketization on Sustainable Economic Growth—Evidence from West China. Sustainability 2021, 13, 3745 .
AMA StyleTingying Chen, Haitian Lu, Rong Chen, Lina Wu. The Impact of Marketization on Sustainable Economic Growth—Evidence from West China. Sustainability. 2021; 13 (7):3745.
Chicago/Turabian StyleTingying Chen; Haitian Lu; Rong Chen; Lina Wu. 2021. "The Impact of Marketization on Sustainable Economic Growth—Evidence from West China." Sustainability 13, no. 7: 3745.
This article traces the extant literature on the impact of social capital on economic attitudes and outcomes. Special attention is paid to clarify conceptual ambiguities, measurement techniques, channels of influence, and identification strategies. Insights derived from the literature are then used to analyze the marketplace lending industry in China, where the size of the peer-to-peer (P2P) lending market is larger than that of the rest of the world combined. Ironically, approximately two-thirds of these online P2P lending platforms have failed. Empirical evidence from the monthly operating data of 735 lending platforms and transaction level data from one prominent platform (Renrendai) shows that platforms in provinces with high social capital have low risk of failure, and borrowers in provinces with high social capital can borrow at low interest rate and are less likely to default. We also provide observations to guide future economic research on social capital.
Iftekhar Hasan; Qing He; Haitian Lu. The impact of social capital on economic attitudes and outcomes. Journal of International Money and Finance 2020, 108, 102162 .
AMA StyleIftekhar Hasan, Qing He, Haitian Lu. The impact of social capital on economic attitudes and outcomes. Journal of International Money and Finance. 2020; 108 ():102162.
Chicago/Turabian StyleIftekhar Hasan; Qing He; Haitian Lu. 2020. "The impact of social capital on economic attitudes and outcomes." Journal of International Money and Finance 108, no. : 102162.
We examine the value of patents on Chinese firms’ access to venture capital (VC). We find that the patent applications (grants) of firms significantly increase their likelihood of obtaining VC funding in the following year(s), particularly for high‐quality patents in high‐tech industries. Depending on investment, patent quantity significantly improves the size of VC investment and firm valuation. This effect is pronounced in first‐round investment, strong intellectual property protection regions, during periods of loose monetary policy, and state/corporate VC. Overall, we support the use of patent as a quality signal in attracting entrepreneurial finance outside the US and warrant the conditions it holds.
Shi Chen; Wei Meng; Haitian Lu. Patent as a Quality Signal in Entrepreneurial Finance: A Look Beneath the Surface. Asia-Pacific Journal of Financial Studies 2018, 47, 280 -305.
AMA StyleShi Chen, Wei Meng, Haitian Lu. Patent as a Quality Signal in Entrepreneurial Finance: A Look Beneath the Surface. Asia-Pacific Journal of Financial Studies. 2018; 47 (2):280-305.
Chicago/Turabian StyleShi Chen; Wei Meng; Haitian Lu. 2018. "Patent as a Quality Signal in Entrepreneurial Finance: A Look Beneath the Surface." Asia-Pacific Journal of Financial Studies 47, no. 2: 280-305.
This article examines the international trend to regulate corporate social responsibility (CSR), with focus on the growing stock exchanges requirements for environmental, social, and governance (ESG) reporting. Using the 2015 ‘comply or explain’ ESG reporting requirement of the Hong Kong Stock Exchange (HKEx) as the setting, I find support to the ‘competitiveness view’ on the motivation for CSR regulation, as opposed to the ‘societal governance view’ or ‘political actor view’. Key insights are drawn from discourse analysis of HKEx’s policy communications materials and public consultation submissions from 2011 to 2015. Event studies on the adopters and non-adopters of voluntary ESG reporting find no evidence that mandatory ESG reporting requirements negatively affect shareholder value. Overall the evidence is consistent with the Hong Kong Special Administrative Region (HKSAR) government pursues CSR regulation as a ‘value capturing strategy’ for long-term competitiveness.
Haitian Lu. The ‘legalisation’ of corporate social responsibility: Hong Kong experience on ESG reporting. Asia Pacific Law Review 2016, 24, 123 -148.
AMA StyleHaitian Lu. The ‘legalisation’ of corporate social responsibility: Hong Kong experience on ESG reporting. Asia Pacific Law Review. 2016; 24 (2):123-148.
Chicago/Turabian StyleHaitian Lu. 2016. "The ‘legalisation’ of corporate social responsibility: Hong Kong experience on ESG reporting." Asia Pacific Law Review 24, no. 2: 123-148.
Many authoritarian regimes lack an independent judiciary. This article studies the effect of firms’ political connectedness on court outcomes using a unique hand-collected data set of 3,323 commercial lawsuits involving listed companies in China. We find robust evidence that Chinese courts favor state firms and private firms with personal political ties. The positive effect of political connectedness is pronounced in the outcomes of litigation but not arbitration and is less pronounced in regions with better legal institutions. We also find that locally connected firms are favored in their home courts but not when the case is tried outside their home province. There is some evidence that China’s 2007 Property Law reduces the advantage of state firms. Our results cast light on the welfare redistribution role of courts in emerging and transitional economies.
Haitian Lu; Hongbo Pan; Chenying Zhang. Political Connectedness and Court Outcomes: Evidence from Chinese Corporate Lawsuits. The Journal of Law and Economics 2015, 58, 829 -861.
AMA StyleHaitian Lu, Hongbo Pan, Chenying Zhang. Political Connectedness and Court Outcomes: Evidence from Chinese Corporate Lawsuits. The Journal of Law and Economics. 2015; 58 (4):829-861.
Chicago/Turabian StyleHaitian Lu; Hongbo Pan; Chenying Zhang. 2015. "Political Connectedness and Court Outcomes: Evidence from Chinese Corporate Lawsuits." The Journal of Law and Economics 58, no. 4: 829-861.
Alexander Ljungqvist; Donghua Chen; Dequan Jiang; Haitian Lu; Mingming Zhou. State Capitalism vs. Private Enterprise. State Capitalism vs. Private Enterprise 2015, 1 .
AMA StyleAlexander Ljungqvist, Donghua Chen, Dequan Jiang, Haitian Lu, Mingming Zhou. State Capitalism vs. Private Enterprise. State Capitalism vs. Private Enterprise. 2015; ():1.
Chicago/Turabian StyleAlexander Ljungqvist; Donghua Chen; Dequan Jiang; Haitian Lu; Mingming Zhou. 2015. "State Capitalism vs. Private Enterprise." State Capitalism vs. Private Enterprise , no. : 1.
China’s stock market has gone through major structural changes since its inception in the early 1990s. In this survey article, we review the empirical literature published in 15 leading accounting and finance journals from 1998 to 2013 that documents these important structural changes. In analysing this literature, we focus on the ‘distinctiveness’ of the Chinese stock market compared with developed stock markets (e.g. US) and the research opportunities generated by the China setting. Key themes include China’s share issue privatisation (SIP) reforms, the political connections in privately owned companies, the characteristics of Chinese listed companies and their governance, the regulatory environment reforms in China, and the evolving role played by auditors and other information intermediaries.
Haitian Lu; Jiajia Fu. Structural Changes in the Chinese Stock Market: A Review of Empirical Research. China Accounting and Finance Review 2014, 16, 1 -27.
AMA StyleHaitian Lu, Jiajia Fu. Structural Changes in the Chinese Stock Market: A Review of Empirical Research. China Accounting and Finance Review. 2014; 16 (2):1-27.
Chicago/Turabian StyleHaitian Lu; Jiajia Fu. 2014. "Structural Changes in the Chinese Stock Market: A Review of Empirical Research." China Accounting and Finance Review 16, no. 2: 1-27.
Haitian Lu; Yi Tan. Global venture capital ‘hotspots’: China. Handbook of Research on Venture Capital: Volume 2 2013, 227 -250.
AMA StyleHaitian Lu, Yi Tan. Global venture capital ‘hotspots’: China. Handbook of Research on Venture Capital: Volume 2. 2013; ():227-250.
Chicago/Turabian StyleHaitian Lu; Yi Tan. 2013. "Global venture capital ‘hotspots’: China." Handbook of Research on Venture Capital: Volume 2 , no. : 227-250.
In this paper, we use a matched sample to empirically test the effect of venture capital investment on the companies listed on the Small and Medium-Sized Enterprises Board in China. We find that Chinese venture capitalists neither add value to their invested firms in the initial public offering (IPO) process nor improve operating performance. Rather, compared with their non-venture-backed counterparts, venture-backed firms are associated with a greater level of IPO underpricing and inferior operating performance both before and after IPO. Our findings in China support neither the certification/monitoring hypothesis nor the grandstanding hypothesis, but partly support the adverse selection hypothesis.
Yi Tan; Hong Huang; Haitian Lu. The Effect of Venture Capital Investment-Evidence from China's Small and Medium-Sized Enterprises Board. Journal of Small Business Management 2012, 51, 138 -157.
AMA StyleYi Tan, Hong Huang, Haitian Lu. The Effect of Venture Capital Investment-Evidence from China's Small and Medium-Sized Enterprises Board. Journal of Small Business Management. 2012; 51 (1):138-157.
Chicago/Turabian StyleYi Tan; Hong Huang; Haitian Lu. 2012. "The Effect of Venture Capital Investment-Evidence from China's Small and Medium-Sized Enterprises Board." Journal of Small Business Management 51, no. 1: 138-157.
This paper is a theory development to Amit, Brander, and Zott (1998, Journal of Business Venturing, 13: 441-466) on the nature of venture capital firms. In their paper, the authors argue that venture capital firms exist because they fill a market niche by developing the ability to overcome extreme information asymmetry embedded in high-risk entrepreneurial firms. However, this theory encounters difficulties in explaining a variety of organizational and behavioral divides among venture capitalists in different contexts and over time. In this paper, we apply the institution-based view to reveal the nature of venture capital. We argue that it is the venture capitalists’ capability to capture economic rents from the institutional environment that distinguish them from other financial intermediaries. We show the connection of our perspective with the conventional view as well as the usefulness of this theory in explaining the development of the venture capital industry in China.
Haitian Lu; Yi Tan; Hong Huang. Why do venture capital firms exist: An institution-based rent-seeking perspective and Chinese evidence. Asia Pacific Journal of Management 2011, 30, 921 -936.
AMA StyleHaitian Lu, Yi Tan, Hong Huang. Why do venture capital firms exist: An institution-based rent-seeking perspective and Chinese evidence. Asia Pacific Journal of Management. 2011; 30 (3):921-936.
Chicago/Turabian StyleHaitian Lu; Yi Tan; Hong Huang. 2011. "Why do venture capital firms exist: An institution-based rent-seeking perspective and Chinese evidence." Asia Pacific Journal of Management 30, no. 3: 921-936.
Mark Williams; Haitian Lu; Chin Aun Ong. Conclusion. Secured Finance Law in China and Hong Kong 2011, 374 -406.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Conclusion. Secured Finance Law in China and Hong Kong. 2011; ():374-406.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Conclusion." Secured Finance Law in China and Hong Kong , no. : 374-406.
Mark Williams; Haitian Lu; Chin Aun Ong. Security over tangible personal property. Secured Finance Law in China and Hong Kong 2011, 36 -93.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Security over tangible personal property. Secured Finance Law in China and Hong Kong. 2011; ():36-93.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Security over tangible personal property." Secured Finance Law in China and Hong Kong , no. : 36-93.
Mark Williams; Haitian Lu; Chin Aun Ong. Introduction. Secured Finance Law in China and Hong Kong 2011, 1 -35.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Introduction. Secured Finance Law in China and Hong Kong. 2011; ():1-35.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Introduction." Secured Finance Law in China and Hong Kong , no. : 1-35.
Mark Williams; Haitian Lu; Chin Aun Ong. Preface. Secured Finance Law in China and Hong Kong 2011, 1 .
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Preface. Secured Finance Law in China and Hong Kong. 2011; ():1.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Preface." Secured Finance Law in China and Hong Kong , no. : 1.
Mark Williams; Haitian Lu; Chin Aun Ong. Enforcement, and creditor's remedies. Secured Finance Law in China and Hong Kong 2011, 329 -373.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Enforcement, and creditor's remedies. Secured Finance Law in China and Hong Kong. 2011; ():329-373.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Enforcement, and creditor's remedies." Secured Finance Law in China and Hong Kong , no. : 329-373.
Mark Williams; Haitian Lu; Chin Aun Ong. Hire-purchase, leasing and conditional sale of tangible personal property. Secured Finance Law in China and Hong Kong 2011, 219 -267.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Hire-purchase, leasing and conditional sale of tangible personal property. Secured Finance Law in China and Hong Kong. 2011; ():219-267.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Hire-purchase, leasing and conditional sale of tangible personal property." Secured Finance Law in China and Hong Kong , no. : 219-267.
Mark Williams; Haitian Lu; Chin Aun Ong. Security over intangible personal property. Secured Finance Law in China and Hong Kong 2011, 94 -144.
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Security over intangible personal property. Secured Finance Law in China and Hong Kong. 2011; ():94-144.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2011. "Security over intangible personal property." Secured Finance Law in China and Hong Kong , no. : 94-144.
This study seeks to unravel the puzzle underlying China's and India's differing experiences in attracting two types of foreign investment: namely foreign direct investment (FDI') and foreign venture capital investment (FVCI'). Complementing the law and finance literature, we argue that foreign investors prefer the direct investment mode in China despite its poor governance environment because direct investment provides private means of control over the business, and China's institutional environment provides a more facilitating arena for FDI than India's. In contrast, India's legal infrastructure and related institutional settings prove to be better than China's in accommodating foreign portfolio (indirect) investment especially in the form of venture capital. The conclusion of this article has implications for the two countries' legal reform in the direction of the desired type of foreign investment. It also provides comparative insights into the legal institutions of China and India in fostering national innovative capacity and entrepreneurship.
Haitian Lu; Hong Huang; Swati Deva. Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China. Asian Journal of Comparative Law 2009, 4, 1 .
AMA StyleHaitian Lu, Hong Huang, Swati Deva. Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China. Asian Journal of Comparative Law. 2009; 4 (1):1.
Chicago/Turabian StyleHaitian Lu; Hong Huang; Swati Deva. 2009. "Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China." Asian Journal of Comparative Law 4, no. 1: 1.
This study seeks to unravel the puzzle underlying China's and India's differing experiences in attracting two types of foreign investment: namely foreign direct investment (‘FDI’) and foreign venture capital investment (‘FVCI’). Complementing the law and finance literature, we argue that foreign investors prefer the direct investment mode in China despite its poor governance environment because direct investment provides private means of control over the business, and China's institutional environment provides a more facilitating arena for FDI than India's. In contrast, India's legal infrastructure and related institutional settings prove to be better than China's in accommodating foreign portfolio (indirect) investment especially in the form of venture capital. The conclusion of this article has implications for the two countries' legal reform in the direction of the desired type of foreign investment. It also provides comparative insights into the legal institutions of China and India in fostering national innovative capacity and entrepreneurship.
Haitian Lu; Hong Huang; Swati Deva. Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China. Asian Journal of Comparative Law 2009, 4, 1 -31.
AMA StyleHaitian Lu, Hong Huang, Swati Deva. Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China. Asian Journal of Comparative Law. 2009; 4 ():1-31.
Chicago/Turabian StyleHaitian Lu; Hong Huang; Swati Deva. 2009. "Unraveling the Puzzle of Differing Rates of FDI and FVCI in India and China." Asian Journal of Comparative Law 4, no. : 1-31.
This book examines systematically the current systems of secured lending in China and Hong Kong, where companies or individuals offer personal property as security for credit advanced by a lender. Valid and enforceable security reduces the risk to the lender and so lowers the cost of credit to the borrower. However, the Hong Kong system, being largely derived from English law, is highly complex and in need of root-and-branch reform. The forces of inaction have triumphed and valuable opportunities to create a modern, rational and efficient system have been squandered. In China, on the other hand, a completely new system has been created in the last twenty years which, whilst it has various problems and defects, has some notable advantages over the common law equivalent found in Hong Kong.
Mark Williams; Haitian Lu; Chin Aun Ong. Secured Finance Law in China and Hong Kong. Secured Finance Law in China and Hong Kong 2009, 1 .
AMA StyleMark Williams, Haitian Lu, Chin Aun Ong. Secured Finance Law in China and Hong Kong. Secured Finance Law in China and Hong Kong. 2009; ():1.
Chicago/Turabian StyleMark Williams; Haitian Lu; Chin Aun Ong. 2009. "Secured Finance Law in China and Hong Kong." Secured Finance Law in China and Hong Kong , no. : 1.