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Ownership Networks and Firm Growth: What Do Forty Million Companies Tell Us About the Chinese Economy?

The finance–growth nexus has been a central question in understanding the unprecedented success of the Chinese economy. Using unique data on all the registered firms in China, the authors build extensive firm-to-firm equity ownership networks. Entering a network and increasing network centrality leads to higher firm growth, and the effect of global centralities strengthens over time. The RMB 4 trillion stimulus launched by the Chinese government in 2008 partially “crowded out” the positive network effects. Equity ownership networks and bank credit tend to act as substitutes for state-owned enterprises, but as complements for private firms in promoting growth.

17
Feb
2022
Thursday

Session Chair: Bohui ZHANG
Executive Associate Dean, Presidential Chair Professor of Finance; Director of the Center for FinTech and Social Finance, Co-director of MSc in Data Science Programme, Shenzhen Finance Institute, Chinese University of Hong Kong, Shenzhen

10:00 am
Ownership Networks and Firm Growth: What Do Forty Million Companies Tell Us About the Chinese Economy?

Jun QIAN, Professor of Finance and Executive Dean at Fanhai International School of Finance (FISF), Fudan University

Co-authors:
Franklin ALLEN, Professor of Finance and Economics and Executive Director of the Brevan Howard Centre, Imperial College London
Junhui CAI, PhD Student, University of Pennsylvania
Xian GU, Associate Professor in Finance Durham University Business School, Durham University
Linda ZHAO, Professor of Statistics and Data Science, Wharton School, University of Pennsylvania
Wu ZHU, Assistant Professor of Finance, Tsinghua University
10:25 am
Discussion
Discussant:
Michael SONG, Professor, Department of Economics, Chinese University of Hong Kong and Senior Fellow, ABFER
10:50 am
Q&A
11:10 am


Updated 23 Feb 2022

Speakers

  • Jun QIAN

    Jun QIAN

     

    Professor of Finance and Executive Dean at Fanhai International School of Finance (FISF), Fudan University

    Jun QIAN is a Professor of Finance and Executive Dean at Fanhai International School of Finance (FISF), Fudan University. Prior to joining FISF, he was Professor of Finance at the Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University, and Director of the DBA/EMBA/EE programs; he was also the Deputy Director of China Academy of Financial Research. Before returning to China, in 2013, he was a tenured finance professor at the Carroll School of Management, Boston College.
    Professor Qian's research interests span many topics of corporate finance, financial institutions and capital markets. His research papers have been published in top academic journals including the American Economic Review, Journal of Finance, Review of Financial Studies and Journal of International Economics. One of his best known papers, published in the Journal of Financial Economics in 2005, is elected an "All-Star" paper based on its large number of citations. In the paper, he and his coauthors explained how China has achieved its impressive economic growth without strong formal institutions or an efficient, 'standard' financial system that includes a stock market and a banking sector. This paper has led to a large and growing number of studies examining the role of alternative institutions in promoting economic growth in China and other developing countries. He also contributed book chapters on developing financial systems, including China's Great Economic Transformation, Emerging Giants: China and India in the World Economy, China's Emerging Financial Markets: Challenges and Opportunities, and Global Perspectives of Rule of Law.

    Professor Qian is an Associate Editor of Frontiers of Economics in China and was on the editorial board of Review of Finance. He is a Research Fellow at the Financial Institutions Center of the Wharton School, University of Pennsylvania. He has also been on the organizing committee of the China International Conference in Finance, the best academic finance conference in Asia, since its inception, and served as conference Co-Chair during 2008-2010. In addition, he was one of the academic advisors for The Chinese Finance Association, the largest organization for Chinese finance practitioners in the U.S. He also served as a visiting or special-term professor at MIT's Sloan School of Management, the Wharton School, School of Economics and Management of Tsinghua University, Shanghai University of Finance and Economics, and Shanghai National Accounting Institute.

    Professor Qian received his Ph.D. from the University of Pennsylvania in 2000, and his B.S. degree in economics from University of Iowa. He also enrolled at Department of International Economics, Fudan University as an undergraduate.

  • Michael SONG

    Michael SONG

     

    Professor, Department of Economics, Chinese University of Hong Kong and Senior Fellow, ABFER

    Michael Song is a professor at the Department of Economics, Chinese University of Hong Kong (CUHK), an outstanding fellow of the Faculty of Social Science at CUHK, a co-director of CUHK-Tsinghua Joint Research Center for Chinese Economy and a distinguished visiting professor at the School of Economics and Management, Tsinghua University. His research focuses onChinese economy and macroeconomics. He published papers on leading academic journals including American Economic Review and Econometrica. His paper “Growing like China” won Sunyefang Economic Science Award and the Best Paper Award for Chinese Young Economists. Before joining CUHK, Prof. Song was an associate professor of economics at Chicago Booth. Prof. Song is also a co-editor of China Economic Review, an associate editor of Econometrica and Journal of European Economic Association and an academic committee member of China’s Economics Foundation.

  • Bohui ZHANG

    Bohui ZHANG

     

    Executive Associate Dean, Presidential Chair Professor of Finance; Director of the Center for FinTech and Social Finance, Co-director of MSc in Data Science Programme, Shenzhen Finance Institute, Chinese University of Hong Kong, Shenzhen

    Bohui Zhang is Executive Associate Dean of the School of Management and Economics, and Presidential Chair Professor of Finance at the Chinese University of Hong Kong, Shenzhen. He is also the Director of the Center for FinTech and Social Finance, Director of M.Sc. in Data Science, and Associate Director of Shenzhen Institute of Data Economy. Before joining CUHK Shenzhen, he was the professor of finance at UNSW Business School, UNSW Sydney, and the associate director of the Institute of Global Finance.

    He studies the role of information intermediaries on capital markets, Chinese and foreign capital markets, and Fintech. His papers have been accepted for publication in the global top-tier finance, accounting, and business journals such as the Review of Financial Studies, Journal of Financial Economics, Journal of Accounting Research, Management Science, Journal of Financial Quantitative and Analysis, Journal of International Business Studies, Review of Finance, Journal of Banking and Finance, Journal of Corporate Finance, Journal of Financial Markets, and Journal of International Money and Finance.

    He has also been awarded with research grants from Australian Research Council, the Centre for International Finance and Regulation, Australian School of Business, National Natural Science Foundation of China, and best paper prizes from MIT Asia Conference in Accounting, the Annual Conference on Asia-Pacific Financial Markets of the Korean Securities Association, the Chinese Finance Association Best Paper Symposium, the China Finance Annual Meeting, the Asian Finance Association Conference, China International Conference in Finance, and the Northern Finance Association Conference.

    He has served as an ad hoc referee for over 30 academic journals such as Journal of Finance, Review of Financial Studies, Journal of Accounting Research, Accounting Review, and Management Science. He is the Associate Editor of Corporate Governance: An International Review, Financial Review, Asia-Pacific Journal of Accounting & Economics, and Asia-Pacific Journal of Financial Studies.

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Session Format

Each session lasts for 1 hour 10 minutes (25 minutes for the author, 25 minutes for the discussant and 20 minutes for participants' Q&A). Sessions will be recorded and posted on ABFER's web, except in cases where speakers or discussants request us not to.

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Agenda