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Quang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. Bank capital regulation: How do Asian banks respond? Pacific-Basin Finance Journal 2019, 57, 1 .
AMA StyleQuang Thi Thieu Nguyen, Christopher Gan, Zhaohua Li. Bank capital regulation: How do Asian banks respond? Pacific-Basin Finance Journal. 2019; 57 ():1.
Chicago/Turabian StyleQuang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. 2019. "Bank capital regulation: How do Asian banks respond?" Pacific-Basin Finance Journal 57, no. : 1.
The banking industry is an essential financial intermediary, thus the efficient operation of banks is vital for economic development and social welfare. However, the 2008 global financial crisis triggered a reconsideration of the banking systems, as well as the role of government intervention. The literature has paid little attention to the banking industry in the Asia-Pacific region in the context of bank efficiency. This study employs double bootstrap data envelopment analysis to measure bank efficiency and examine the relationship between regulation, supervision, and state ownership in commercial banks in the Asia-Pacific region for the period 2005 to 2014. Our results indicate that excluding off-balance sheet activities in efficiency estimations lead to underestimating of the pure technical efficiency, while overestimating the scale efficiency of banks in the Asia-Pacific region. Cross-country comparisons reveal that Australian banks exhibit the highest levels of technical efficiency, while Indonesian banks exhibit the lowest average. Our bootstrap regression results suggest that bank regulation and supervision are positively related to bank technical efficiency, while state ownership is not significantly related to bank efficiency. Furthermore, our findings show that tighter regulation and supervision are significantly related to higher efficiency for small and large-sized banks.
Zhenni Yang; Christopher Gan; Zhaohua Li; Yang; Gan; Li. Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks. Journal of Risk and Financial Management 2019, 12, 131 .
AMA StyleZhenni Yang, Christopher Gan, Zhaohua Li, Yang, Gan, Li. Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks. Journal of Risk and Financial Management. 2019; 12 (3):131.
Chicago/Turabian StyleZhenni Yang; Christopher Gan; Zhaohua Li; Yang; Gan; Li. 2019. "Role of Bank Regulation on Bank Performance: Evidence from Asia-Pacific Commercial Banks." Journal of Risk and Financial Management 12, no. 3: 131.
This study examines the balance sheets of banks in 15 Asian countries from 2004 to 2016 to explore how they respond to stricter capital regulation. We consider the simultaneity of balance sheet adjustments. Employing a normalisation method, the study found that Asian banks increased regulatory capital, primarily through retained earnings, and expanded assets over the study period. However, the two‐step system Generalised Method of Moments results do not support the positive effect of capital regulation on regulatory capital components adjustments. In addition, stricter capital regulation even induces banks to reduce lending.
Quang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. Capital regulation and bank balance sheet adjustments: a simultaneous approach. Accounting & Finance 2019, 60, 1563 -1599.
AMA StyleQuang Thi Thieu Nguyen, Christopher Gan, Zhaohua Li. Capital regulation and bank balance sheet adjustments: a simultaneous approach. Accounting & Finance. 2019; 60 (2):1563-1599.
Chicago/Turabian StyleQuang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. 2019. "Capital regulation and bank balance sheet adjustments: a simultaneous approach." Accounting & Finance 60, no. 2: 1563-1599.
This study examines how capital regulation affects bank capital ratio in Asia during the period 2001–2015. Employing a new capital regulation measurement and System Generalized Method of Moments estimation, our study shows that: (i) Capital regulation has been effective in inducing banks to raise capital ratios; (ii) Bank capital ratios are affected by bank characteristics and macro-economic factors, similar to non-financial firms; (iii) The effects of bank characteristics and macro-economic factors vary across banks in developed, emerging and frontier countries, as well as countries with and without Basel Committee membership.
Quang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. Capital regulation and bank capital ratio – introduction of a new measurement. Asia-Pacific Journal of Accounting & Economics 2019, 1 -27.
AMA StyleQuang Thi Thieu Nguyen, Christopher Gan, Zhaohua Li. Capital regulation and bank capital ratio – introduction of a new measurement. Asia-Pacific Journal of Accounting & Economics. 2019; ():1-27.
Chicago/Turabian StyleQuang Thi Thieu Nguyen; Christopher Gan; Zhaohua Li. 2019. "Capital regulation and bank capital ratio – introduction of a new measurement." Asia-Pacific Journal of Accounting & Economics , no. : 1-27.
This study examines the financing cost enterprises confront when seeking backing from venture capitalists (VC) in different institutional settings related to proxy voting rights. Using a sociological perspective, we have developed new indexes for proxy voting rights from 28 countries. Examining 2598 VC-backed financing deals over the period of 1997 to 2016, we find that proxy voting rights significantly reduce enterprises’ financing costs. Our findings are robust to a number of checks after addressing endogeneity concerns.
Qing Liang; Christopher Gan; Zhaohua Li. Institutional environment and financing costs: Evidence from venture capital backed transactions. Finance Research Letters 2018, 31, 1 .
AMA StyleQing Liang, Christopher Gan, Zhaohua Li. Institutional environment and financing costs: Evidence from venture capital backed transactions. Finance Research Letters. 2018; 31 ():1.
Chicago/Turabian StyleQing Liang; Christopher Gan; Zhaohua Li. 2018. "Institutional environment and financing costs: Evidence from venture capital backed transactions." Finance Research Letters 31, no. : 1.
Zhuo Qiao; Zhaohua Li. Do foreign institutional investors enhance firm innovation in China? Applied Economics Letters 2018, 26, 1125 -1128.
AMA StyleZhuo Qiao, Zhaohua Li. Do foreign institutional investors enhance firm innovation in China? Applied Economics Letters. 2018; 26 (13):1125-1128.
Chicago/Turabian StyleZhuo Qiao; Zhaohua Li. 2018. "Do foreign institutional investors enhance firm innovation in China?" Applied Economics Letters 26, no. 13: 1125-1128.
This article examines the impact of stock market liquidity on bank liquidity creation in Malaysia. Our results indicate that a stock market enhances the liquidity creation of banks both on and off the banks’ balance sheets when the market liquidity increases. Further analysis shows that the positive impact of stock market liquidity is evident on the liquidity creation of publicly listed banks as the banks’ cost of equity finance becomes cheaper. Our results are robust to the influence of the 2008 financial crisis and different estimation methods. Our results refute the traditional view that increased stock market liquidity “steals” banks’ business and crowds out bank liquidity creation.
Moau Yong Toh; Christopher Gan; Zhaohua Li. Revisiting the Impact of Stock Market Liquidity on Bank Liquidity Creation: Evidence from Malaysia. Emerging Markets Finance and Trade 2018, 55, 1776 -1802.
AMA StyleMoau Yong Toh, Christopher Gan, Zhaohua Li. Revisiting the Impact of Stock Market Liquidity on Bank Liquidity Creation: Evidence from Malaysia. Emerging Markets Finance and Trade. 2018; 55 (8):1776-1802.
Chicago/Turabian StyleMoau Yong Toh; Christopher Gan; Zhaohua Li. 2018. "Revisiting the Impact of Stock Market Liquidity on Bank Liquidity Creation: Evidence from Malaysia." Emerging Markets Finance and Trade 55, no. 8: 1776-1802.
Purpose This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program, with a focus on factors that influence the use of HPF loans. Design/methodology/approach This paper develops and estimates a logit model of whether homeownership could be promoted by participation in and use of the HPF program, with a focus on factors that influence the use of HPF loans. Findings The results show that coefficients of marital status, educational level, age, duration of employment and employer are significantly related to the use of HPF loan for homeownership. Research limitations/implications Because of the chosen research approach, the research results may lack generalizability. Practical implications The research findings provide a better understanding of homeowners’ characteristics. Originality/value To manage the HPF program effectively, it is important for government to have a better understanding of the underlying demand for homeownership, especially with respect to the different demographic variables and accessibility to HPF loans and the HPF.
Weizhuo Wang; Christopher Gan; Zhiyou Chang; David A. Cohen; Zhaohua Li. Homeownership in urban China: an empirical study of borrower characteristics and the Housing Provident Fund program in Kunming. Journal of Asia Business Studies 2018, 12, 318 -339.
AMA StyleWeizhuo Wang, Christopher Gan, Zhiyou Chang, David A. Cohen, Zhaohua Li. Homeownership in urban China: an empirical study of borrower characteristics and the Housing Provident Fund program in Kunming. Journal of Asia Business Studies. 2018; 12 (3):318-339.
Chicago/Turabian StyleWeizhuo Wang; Christopher Gan; Zhiyou Chang; David A. Cohen; Zhaohua Li. 2018. "Homeownership in urban China: an empirical study of borrower characteristics and the Housing Provident Fund program in Kunming." Journal of Asia Business Studies 12, no. 3: 318-339.
This paper examines who receives government subsidies when a firm faces delisting risk and how subsidies affect such a firm's performance in China. It focuses on the accounting‐based delisting rule issued in 1998 that relies heavily on the profitability of firms. Using the probit model, this study finds that subsidies are less likely to be granted to a firm that has a higher risk of being delisted than a healthy firm, but are more likely to be granted to such a firm if it is state‐owned. It is also found that having a political connection increases a firm's chance of receiving subsidies, but such an effect disappears when a firm faces a delisting risk. In assessing the impact of a subsidy on firm performance, this study shows that a subsidy increases a firm's valuation and profitability for firms at delisting risk.
Zhaohua Li. Earnings‐based Delisting Regulations and Government Subsidies. Australian Accounting Review 2018, 29, 281 -298.
AMA StyleZhaohua Li. Earnings‐based Delisting Regulations and Government Subsidies. Australian Accounting Review. 2018; 29 (1):281-298.
Chicago/Turabian StyleZhaohua Li. 2018. "Earnings‐based Delisting Regulations and Government Subsidies." Australian Accounting Review 29, no. 1: 281-298.
Purpose The purpose of this paper is to examine the effects of chief executive officer (CEO) vega on firm policies in the Australian share market based on a panel data set drawn from the 137 Australian public firms for the period 2003-2012. Design/methodology/approach To allow mutual causation between our variables, the authors use the two-stage least squares estimation method, controlling for firm fixed effects. The authors use the difference-in-differences model to test whether the 2009 Australian tax reforms may discourage high-vega CEOs to take value-enhancing risks. Findings The authors find the evidence that vega induces CEOs to adopt the riskier financial policy in the Australian capital market. This evidence is further supported by the negative association between vega and firm conservative activities including cash and hedging policies. Further, the result shows that the 2009 tax reforms reduce the CEOs’ willingness to engage in risky financial policy. This finding implies that regulators may restore the 2009 reforms’ “deferred tax point” back to its pre-2009 form. Originality/value Based on the study’s results, firms should grant CEOs more out-of-the money options with a longer time to expiration to offset the 2009 tax reforms’ negative impact on the CEO’s incentive to take value-enhancing risks.
Chao Bian; Christopher Gan; Zhaohua Li; Baiding Hu. CEO pay-risk sensitivity, firm policies, and 2009 Australian tax reforms. International Journal of Managerial Finance 2017, 14, 54 -77.
AMA StyleChao Bian, Christopher Gan, Zhaohua Li, Baiding Hu. CEO pay-risk sensitivity, firm policies, and 2009 Australian tax reforms. International Journal of Managerial Finance. 2017; 14 (1):54-77.
Chicago/Turabian StyleChao Bian; Christopher Gan; Zhaohua Li; Baiding Hu. 2017. "CEO pay-risk sensitivity, firm policies, and 2009 Australian tax reforms." International Journal of Managerial Finance 14, no. 1: 54-77.
Chao Bian; Christopher Gan; Zhaohua Li; Baiding Hu. Corporate social responsibility engagement, corporate financial performance and CEO characteristics. International Journal of Business Governance and Ethics 2016, 11, 243 .
AMA StyleChao Bian, Christopher Gan, Zhaohua Li, Baiding Hu. Corporate social responsibility engagement, corporate financial performance and CEO characteristics. International Journal of Business Governance and Ethics. 2016; 11 (3):243.
Chicago/Turabian StyleChao Bian; Christopher Gan; Zhaohua Li; Baiding Hu. 2016. "Corporate social responsibility engagement, corporate financial performance and CEO characteristics." International Journal of Business Governance and Ethics 11, no. 3: 243.
Not availableZhaohua Li, Takeshi Yamad
Zhaohua Li; Takeshi Yamada. Political and economic incentives of government in partial privatization. Journal of Corporate Finance 2015, 32, 169 -189.
AMA StyleZhaohua Li, Takeshi Yamada. Political and economic incentives of government in partial privatization. Journal of Corporate Finance. 2015; 32 ():169-189.
Chicago/Turabian StyleZhaohua Li; Takeshi Yamada. 2015. "Political and economic incentives of government in partial privatization." Journal of Corporate Finance 32, no. : 169-189.
Accessibility to loans for house purchases in urban China is problematic. Continuing governmental efforts to control rising house prices has affected consumers' ability to find funding, with different consequences for the various buyer segments of the population. These result from differences in their demand for homeownership, which is reflected in success rates for gaining home loans. A better understanding of the underlying demand for homeownership and the demographic characteristics of borrowers would likely assist the government in its effort to develop policies to enhance accessibility to loans in general, and housing providence funds (HPF) in particular. A finer understanding of these characteristics could thus lead to a more comprehensive loan strategy. This would enhance the government's ability to address some of the equity issues that arise from its efforts to control housing markets. To address this issue, this paper develops and estimates a binary logit model of homeownership participation in HPF program, with a focus on accessibility to HPF loans. The estimates were generated using a variety of demographic variables. Our findings document that people with longer histories of employment and married households are more likely to access credit and therefore to own a house. Analysis also shows that gender, marital status, education level, high annual income and duration of employment are significantly related to HPF loan use for homeownership. These borrower demographic characteristics are thus significantly related to loan accessibility.
Weizhuo Wang; Christopher Gan; Zhaohua Li; David A. Cohen; Minh Chua Tran. Accessibility of Homeownership in Urban China: An Empirical Study of Borrower Characteristics and the Housing Provident Fund. SSRN Electronic Journal 2015, 1 .
AMA StyleWeizhuo Wang, Christopher Gan, Zhaohua Li, David A. Cohen, Minh Chua Tran. Accessibility of Homeownership in Urban China: An Empirical Study of Borrower Characteristics and the Housing Provident Fund. SSRN Electronic Journal. 2015; ():1.
Chicago/Turabian StyleWeizhuo Wang; Christopher Gan; Zhaohua Li; David A. Cohen; Minh Chua Tran. 2015. "Accessibility of Homeownership in Urban China: An Empirical Study of Borrower Characteristics and the Housing Provident Fund." SSRN Electronic Journal , no. : 1.
In order to align executives’ interests with shareholders’ interests, board of directors has rewarded executives with more option-based payments in the past decades. However, as volatility of share return increases, CEOs are more risk averse because their human capital and wealth are undiversified. Consequently, CEOs may pass up risky but value-enhancing corporate policy decisions. High pay-equity risk sensitivity (vega) CEOs are hypothesised to have more incentive to adopt more risky corporate policy, given that the volatility of the underlying share increases option value in Black-Scholes option pricing model.This study investigates the effect of vega on firm’s book leverage and vega determinants based on a panel data of 137 Australian firms from 2003 to 2012, a period in which the federal government implemented a series of executive pay reforms to tie the pay more closely to performance. The results show that vega has a significant and positive effect on firm’s leverage. In addition, the results demonstrate that there is a negative and statistical significant association between vega and CEOs’ risk-aversion such as the option moneyness and cash compensation. This study also provides evidence that firm size has a significantly positive effect on firms’ debt financing. Furthermore, in-the-money options and executive cash compensation have significant and negative impact on vega.
Chao Bian; Christopher Gan; Baiding Hu; Zhaohua Li. An Empirical Investigation on CEOs' Option Incentives and Firmss Risky Financing Policy: Evidence from Australian Public Companies. SSRN Electronic Journal 2014, 1 .
AMA StyleChao Bian, Christopher Gan, Baiding Hu, Zhaohua Li. An Empirical Investigation on CEOs' Option Incentives and Firmss Risky Financing Policy: Evidence from Australian Public Companies. SSRN Electronic Journal. 2014; ():1.
Chicago/Turabian StyleChao Bian; Christopher Gan; Baiding Hu; Zhaohua Li. 2014. "An Empirical Investigation on CEOs' Option Incentives and Firmss Risky Financing Policy: Evidence from Australian Public Companies." SSRN Electronic Journal , no. : 1.
Christopher Gan; Zhaohua Li; Weizhuo Wang; Betty Kao. Credit scoring in mortgage lending: evidence from China. International Journal of Housing Markets and Analysis 2012, 5, 334 -350.
AMA StyleChristopher Gan, Zhaohua Li, Weizhuo Wang, Betty Kao. Credit scoring in mortgage lending: evidence from China. International Journal of Housing Markets and Analysis. 2012; 5 (4):334-350.
Chicago/Turabian StyleChristopher Gan; Zhaohua Li; Weizhuo Wang; Betty Kao. 2012. "Credit scoring in mortgage lending: evidence from China." International Journal of Housing Markets and Analysis 5, no. 4: 334-350.
This study investigates China’s evolving banking systems from 1996 to 2009 by testing the market response to bank loan announcements in the China. The results show a significant negative market response to bank loan announcements in the Chinese financial market for the sample period 1996–2004. However, after a series of reforms in the Chinese banking system, the significantly negative market response to bank loan announcements disappears for the sample period 2005–2009.
Christopher Gan; Yuan Zhang; Zhaohua Li; David A. Cohen. The evolution of China’s banking system: bank loan announcements 1996-2009. Accounting & Finance 2012, 54, 165 -188.
AMA StyleChristopher Gan, Yuan Zhang, Zhaohua Li, David A. Cohen. The evolution of China’s banking system: bank loan announcements 1996-2009. Accounting & Finance. 2012; 54 (1):165-188.
Chicago/Turabian StyleChristopher Gan; Yuan Zhang; Zhaohua Li; David A. Cohen. 2012. "The evolution of China’s banking system: bank loan announcements 1996-2009." Accounting & Finance 54, no. 1: 165-188.
Yuan Zhang; Christopher Gan; Zhaohua Li. Effects of borrowers' quality on the size of market response to bank loan announcements in China. Management Research Review 2012, 35, 379 -404.
AMA StyleYuan Zhang, Christopher Gan, Zhaohua Li. Effects of borrowers' quality on the size of market response to bank loan announcements in China. Management Research Review. 2012; 35 (5):379-404.
Chicago/Turabian StyleYuan Zhang; Christopher Gan; Zhaohua Li. 2012. "Effects of borrowers' quality on the size of market response to bank loan announcements in China." Management Research Review 35, no. 5: 379-404.
This study examines the government’s incentives to control partially privatized SOEs in share issue privatization in China. In addition to controlling firms in strategic industries, in certain geographical areas, and that have related party transactions, our result shows that government selects and controls firms that have better valuations and employ more workers vis-à-vis comparable private firms. Particularly, local governments, which are more likely to face hard budget constraints, might spend the profits of government controlled firms to hire more workers (Boycko et al, 1996), suggesting that government pursues efficiency and political objectives simultaneously. Our study finds that local governments prefer to control relatively more efficient firms that hire more workers, while central government prefer to controls firms that hire more workers regardless of efficiency. We estimate the impact of government’s decision on firm valuations and employment and find a pronounced economic impact to preserve employment and a limited impact to improve efficiency.
Takeshi Yamada; Zhaohua Li. The Government Control of Partially Privatized Firms: Political and Economic Objectives. SSRN Electronic Journal 2012, 1 .
AMA StyleTakeshi Yamada, Zhaohua Li. The Government Control of Partially Privatized Firms: Political and Economic Objectives. SSRN Electronic Journal. 2012; ():1.
Chicago/Turabian StyleTakeshi Yamada; Zhaohua Li. 2012. "The Government Control of Partially Privatized Firms: Political and Economic Objectives." SSRN Electronic Journal , no. : 1.
The Chinese government established the Act on Commercial Banks 1995 to enforce and regulate commercial banking activities. The government envisaged that the Act, together with other bank reforms, would improve credit risk management practice among commercial banks, hence, prompting the banks to reduce and ultimately stop local government directed policy lending to state-owned enterprises (SOEs). This paper examines the lending behavior of a government-controlled commercial bank before and after the passage of the Act. We find that the bank tightened control of the credit risk of borrowers after the passage of the Act. We also find that SOEs are charged a rate of interest higher than that charged to private firms.
Zhaohua Li. Legislative Impact on Lending: Credit Risk Management in China. Review of Pacific Basin Financial Markets and Policies 2011, 14, 617 -645.
AMA StyleZhaohua Li. Legislative Impact on Lending: Credit Risk Management in China. Review of Pacific Basin Financial Markets and Policies. 2011; 14 (4):617-645.
Chicago/Turabian StyleZhaohua Li. 2011. "Legislative Impact on Lending: Credit Risk Management in China." Review of Pacific Basin Financial Markets and Policies 14, no. 4: 617-645.
Journal of Banking Regulation is one of the leading sources of authoritative and detailed information on all aspects of law and regulation affecting banking institutions.
Carol Chen Qing; Christopher Gan; Zhaohua Li. An empirical analysis of the effects of market response to bank loan announcements in Hong Kong stock market. Journal of Banking Regulation 2011, 12, 210 -226.
AMA StyleCarol Chen Qing, Christopher Gan, Zhaohua Li. An empirical analysis of the effects of market response to bank loan announcements in Hong Kong stock market. Journal of Banking Regulation. 2011; 12 (3):210-226.
Chicago/Turabian StyleCarol Chen Qing; Christopher Gan; Zhaohua Li. 2011. "An empirical analysis of the effects of market response to bank loan announcements in Hong Kong stock market." Journal of Banking Regulation 12, no. 3: 210-226.