Blockchain Papers

Zhixiao Wang

This thesis extends the literature by adding new empirical evidence associated with firm’s decisions in fixed investment and capital structure, under the assumption of capital market imperfection. In Chapter 2, we combine a panel of over 95,000 Chinese manufacturing firms of different ownership types over the period 2000-2007 with the Marketization Index for China’s provinces during the same period and investigate whether or not, and how, the cross-regional differences in institutions and financial development can affect the firm level financing constraints. Our main results indicate that institutional and financial development in China can reduce financing constraints significantly for the investments of private firms and partly for foreign firms, while increasing the financing constraints for the investments of state and collective firms. Different from previous studies at aggregate level, we identify a positive relation between finance and growth in the Chinese economy from a micro-perspective. In Chapter 3, we estimate the respective effect of state ownership and share concentration on firms’ leverage adjustment speed towards optimal level by using the Chinese listed firms dataset (1998-2010). We find that the firms with state ownership present lower leverage adjustment speed towards optimal leverage ratio than their privately owned counterparts. A positive relation from share concentration to leverage adjustment speed is also detected. These results suggest that ownership structure can significantly determine a firm’s costs of adjustment as well as incentives to adjust. Our works offer a new channel for people to understand the heterogeneous leverage adjustment behaviours among firms. In Chapter 4, using the Chinese listed firms dataset (1998-2016), we test the casual relation from short debt maturity to firms’ fixed capital expenditure. After controlling the level of leverage, we obtain a significant negative coefficient on short debt maturity in the investment regression model, especially for the sample of firms with worse financial condition. This indicates that rollover risk plays an important role in determining firms’ investment decisions and it is more likely to be triggered at bad time. Overall, our research suggest several policy implications. First, deeper economic decentralization and further financial liberalization are important for reducing the resource misallocation between state and non-state sectors in the Chinese economy. Second, more applicable provisions for minority investor protection are required to be formulated, which are expected to provide more options for ownership reform in publicly listed SOEs. Lastly, alternatives for long-term debt financing, other than bank loans, have to be developed, thereby reducing the systematic rollover risk in the economy.

Wang Xianme

Mineral exploration financing model is closely related to one country's geological work system and mechanism, which has a certain national characteristics. As a whole, there are two financing models in the exploration investment and financing system of developed mining countries. One is market-oriented first, various monetary measures second, represented by emerging mining markets such as Canada and Australia; the other is dominated by securities financing, with the United Kingdom and the USA as representations. While, in China, the investment and financing model is the decentralized mode with government investment and social investment as the focus. On this basis, this paper introduces the enlightenments drawn from international mineral exploration investment and financing policy. These include: the benign interactions between a sound policy financing system and market financing; classifying the channel of their listing for listed companies of exploration and mining; enhancing the support of capital market for mining exploration stage; encouraging the development of intermediary financing institutions; raising the scientific nature of the mining exploration stage; and attracting foreign investment to improve mineral exploration investment and financing market environment.

PU Zhi-zhong

Mineral resource tax is an old tax category,its taxation should fully embody the finance,equity and efficiency principles of modern taxation.The royalty of state-owned mineral resources possesses the nature of taxation and the developed countries usually obtained the state-owned mineral resource owner's income by the form of rent tax.In the model of financial decentralization,the local government should get compensation for its public service cost provided in mineral resource exploitation by mineral resource taxation,and share the rent income from mineral resource exploitation with the central government.