Dr. Kun Su, Professor
School of Management, Northwestern Polytechnical University, Xi'an, China
Biography: Dr. Kun Su received the B.S. and Ph.D. degrees from Xi’an Jiaotong University of China. Since 2011, he has been a teacher at the Department of Accounting, School of Management at Northwestern Polytechnical University, and he is a professor since 2020. His main study area includes corporate finance, corporate governance, and information disclosure. He has published more than 20 SSCI papers in internationally renowned journals and 30 Chinese papers in CSSCI journals, including Abacus, European Journal of Finance, International Review of Financial Analysis, Journal of International Financial Markets, Institutions and Money, Technological Forecasting and Social Change, Journal of Business Research, China Accounting and Finance Review,《中国工业经济》,《公共管理学报》,《会计研究》and《中国会计评论》.
Topic: Does Performance Aspiration Gap Affect Stock Price Crash Risk?
Abstract: Using a corporate-level dataset of Chinese listed companies, we studied the effect of the performance aspiration gap on stock price crash risk and the moderate effect of marketization and political connection. Our results show that: when the actual performance is below aspiration level, the aspiration gap will prompt managers to take risky behaviors and information manipulation behaviors, which will increase the stock price crash risk. In the two types of risky behaviors, the effect of aspiration gap on stock price crash through illegal risky behaviors is greater. The impact of aspiration loss on stock price crash risk is affected by the degree of marketization and political connection. Marketization and political connection negatively moderate the association between aspiration loss and stock price crash risk. When the actual performance is above aspiration level, managers did not have the motivation to adopt or evade the risk-taking behaviors. The aspiration surplus has no significant impact on stock price crash risk. We introduce the performance aspiration gap into the study of stock price crash risk, enriching and expanding the research on the economic consequences of performance aspiration gap and the affecting factors of stock price crash risk, providing a new explanation for our deepen understanding of the stock price crash risk in China's capital market.
Dr. Hengguo Zhang, Associate Researcher
Center for Economic Research, Shandong University, Jinan, China
Biography: Zhang Hengguo received the B.S. and M.S. degrees from Sun Yat-sen University and the Ph.D. degree from the Ocean University of China. He was a postdoctoral in Fudan University. Since 2019, he has been a teacher at Shandong University. He has published nearly 10 SSCI and SCI papers in internationally renowned journals. The research direction is the intersection of big data and economics and finance.
Topic: How Does News-Driven Monetary Policy Friction Affect Non-Performing Loans?
Abstract: The banking system is an important part of the modern financial system and an indispensable financial intermediary for the healthy and stable operation of the entire economic system. This paper extends the dynamic stochastic general equilibrium (DSGE) model by machine learning, and constructs monetary policy friction index based on financial news. Then, theoretically analyze how the news-driven monetary policy friction affects the non-performance loans of commercial banks. Further, the monetary policy friction volatility spillover network is constructed by GARCH-BEKK model and complex network. Finally, spatial econometric methods are employed to empirically examine the volatility spillover effect of news-driven monetary policy friction on the non-performance loans. The results show that monetary policy friction has a significant positive spatial effect on the non-performing loan of Chinese commercial banks. This means that the government is supposed to increase information transparency in the transmission of monetary policy to reduce information asymmetry.