Financial liberalization and financing constraints: some evidence from panel data of listed Chinese firms

This paper examines the impact of recent financial liberalization in China on the financing constraints and investment of publicly-listed Chinese firms. Two continuous indices are constructed to measure the evolution and intensity of financial reforms: a financial liberalization index and a capital control index. Dynamic panel GMM method is used to estimate firms’ financing constraints in an Euler-equation investment model. The results indicate that while smaller firms face significant financing constraints than larger firms, financial liberalization has raised the financing constraints for the latter and failed to relieve the constraints for the former. It appears financial reforms in China have subjected larger firms to greater market discipline but the reforms probably have not been profound enough to benefit smaller firms.Financial liberalization; investments; financing constraints; Chinese firms

Evidence for a Functional Interaction between Integrins and G Protein-activated Inward Rectifier K+ Channels

Heteromultimeric G protein-activated inward rectifier K+ (GIRK) channels, abundant in heart and brain, help to determine the cellular membrane potential as well as the frequency and duration of electrical impulses. The sequence arginine-glycine-aspartate (RGD), located extracellularly between the first membrane-spanning region and the pore, is conserved among all identified GIRK subunits but is not found in the extracellular domain of any other cloned K+ channels. Many integrins, which, like channels, are integral membrane proteins, recognize this RGD sequence on other proteins, usually in the extracellular matrix. We therefore asked whether GIRK activity might be regulated by direct interaction with integrin. Here, we present evidence that mutation of the RGD site to RGE, particularly on the GIRK4 subunit, decreases or abolishes GIRK current. Furthermore, wild-type channels can be co-immunoprecipitated with integrin. The total cellular amount of expressed mutant GIRK channel protein is the same as the wild-type protein; however, the amount of mutant channel protein that localizes to the plasma membrane is decreased relative to wild-type, most likely accounting for the diminished GIRK current detected. GIRK channels appear to bind directly to integrin and to require this interaction for proper GIRK channel membrane localization and function

Regional Capital Mobility in China: 1978-2006

We examine cross-region capital mobility in China and track how the degree of mobility has changed over time. The effects of fiscal and redistributive activities of different levels of government in China on private capital mobility are taken into account. Our results indicate that there was a significant improvement in capital mobility over time in China, particularly for private capital in the more developed regions. The central and provincial governments, via their taxation, spending, and transfers, loosen the relationship between private saving and investment and appear to promote capital mobility, particularly for less developed regions. There are considerable differences between more and less developed regions in terms of the degree of capital market integration and the improvement in capital mobility over time. The results have important policy implications on global re-balancing as well as regional development gap and risk-sharing within China.Feldstein-Horioka; Chinese cross-region capital mobility; saving-investment relationship; Chinese capital market integration

Chinese Firms’ Political Connection, Ownership, and Financing Constraints

We empirically examine some listed Chinese firms’ political connection, ownership, and financing constraints. Politically-connected firms display no financing constraints whereas firms without connection experience significant constraints. Non-connected family-controlled firms bear greater constraints than non-connected state-owned firms.Political connection; investments; financing constraints; Chinese firms

Optimization of scale-free network for random failures

It has been found that the networks with scale-free distribution are very resilient to random failures. The purpose of this work is to determine the network design guideline which maximize the network robustness to random failures with the average number of links per node of the network is constant. The optimal value of the distribution exponent and the minimum connectivity to different network size are given in this paper. Finally, the optimization strategy how to improve the evolving network robustness is given.Comment: 6 pages, 1 figur

Optimization of robustness of scale-free network to random and targeted attacks

The scale-fee networks, having connectivity distribution $P(k)\sim k^{-\alpha}$ (where $k$ is the site connectivity), is very resilient to random failures but fragile to intentional attack. The purpose of this paper is to find the network design guideline which can make the robustness of the network to both random failures and intentional attack maximum while keeping the average connectivity per node constant. We find that when $=3$ the robustness of the scale-free networks reach its maximum value if the minimal connectivity $m=1$, but when is larger than four, the networks will become more robust to random failures and targeted attacks as the minimal connectivity $m$ gets larger