Finance in China
- Course Code:
- Unit value:
- Year of study:
- Year 3 of 3 or Year 4 of 4
- Taught in:
- Term 2
A prerequisite for this course is Financial Strategy 151030012 in Term 1
Objectives and learning outcomes of the course
At the end of this course students should be able to:
- Understand why the Chinese finance system is different from other financial systems elsewhere
- Apply standard corporate finance theories to Chinese firms and explain why Chinese firms may behave differently from firms in mature market economies
- Obtain updates about the most recent development in Chinese capital markets such as the corporate bond market, private equity, and the shadow banking system in China.
Method of assessmentThis course is assessed by 30% written coursework and 70% by one two hour examination
- Allen, Franklin & Douglas Gale (2001) Comparing Financial Systems, the MIT press, Chapters1,2, 3.
- Allen, Franklin, Jun Qian and Meijun Qian (2005) Law, Finance, and Economic Growth in China, Journal of Financial Economics, 7 (1), 57-116.
- Allen, Franklin, Jun Qian, Chenying Zhang, Mengxin Zhao (2012) China’s Financial System: Opportunities and Challenges, in NBER book “Capitalizing China”, edited by Joseph Fan and Randall Morck, University of Chicago Press.
- Bo, Hong, Zhongnan Huang, and Changyun Wang (2011) Understanding Seasoned Equity Offerings of Chinese Firms, Journal of Banking and Finance,35(5), 1143-1157.
- Franklin Allen, Ana Babus, Elena Carletti (2009), Financial Crises: Theory and Evidence, Annual Review of Financial Economics, December 2009.
- Joseph P. H. Fan, Sheridan Titman, and Garry Twite (2012) An International Comparison of Capital Structure and Debt Maturity Choices. Journal of Financial and Quantitative Analysis 47(1), 23-56.
- Kim, W., M.S.Weisbach, (2008) Motivations for Public Equity Offers: An International Perspective. Journal of Financial Economics 87, 281-307.
- Meghana Ayyagari, Asli demirgiic-Kunt, Vojislav Maksimovic (2010) Formal versus Informal Finance: Evidence from China, Review of Financial Studies, 23(8), 3048-3097.
- Myers, S. and Majluf, N. (1984) Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13 (2), 187-221.
- Opler, T., Pinkowitz, L., Stultz, R., Williamson, R. (1999) The Determinants and Implications of Corporate Cash Holdings, Journal of Financial Economics, 52, 3-46.
- Shleifer, A. and R. Vishny (1997) A survey of Corporate Governance, Journal of Finance 52, 737-783.
- Stiglitz, J.E. and A. Weiss, (1981) Credit rationing in markets with imperfect information. The American Economic Review, 71 (3), 393-410.