NDLI: Crisis-Like Behavior in China's Stock Market and Its Interpretation

Content Provider	PubMed Central
Author	Fan, Fangli Gao, Jianbo Liang, Shuhong
Editor	Montoya, Alejandro Raul Hernandez
Copyright Year	2015
Abstract	In order for China to play a bigger, more positive role in the world, it is important for China to have a healthy capital market. This perception motivates us to examine the health of China's capital market, especially the severity of the overall loss of the listed companies in China and the effects of accounting irregularities on the losses. We show the overall loss of the listed companies was very severe, in particular, crisis-like behavior emerged in the fourth quarter of 2002, 2004, 2005, and 2008. We further observe that loss in the fourth quarter was much greater than the average loss of the first three quarters in the same year. The most straightforward interpretation of this loss pattern is that companies underreported losses in the first three quarters, to boost their stock values in most time of the year. However, in the fourth quarter, accounting balance of the whole year dictated that the reported loss in the fourth quarter had to be much greater than the actual loss. Fortunately, such irregularity has been greatly reduced, thanks to the accounting reforms in China in 2007.
Related Links	http://dx.doi.org/10.1371/journal.pone.0117209
Starting Page	117209
File Format	PDF
ISSN	19326203
e-ISSN	19326203
Journal	PLoS ONE
Issue Number	2
Volume Number	10
Language	English
Publisher	Public Library of Science
Publisher Date	2015-02-01
Access Restriction	Open
Rights Holder	Public Library of Science
Subject Keyword	Biochemistry, Genetics and Molecular Biology(all) Agricultural and Biological Sciences(all) Medicine(all) Research in Higher Education
Content Type	Text
Resource Type	Article
Subject	Multidisciplinary

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Fractal Profit Landscape of the Stock Market

Web Search Queries Can Predict Stock Market Volumes

Confidence and the Stock Market: An Agent-Based Approach

Dynamic Evolution of Cross-Correlations in the Chinese Stock Market

Impact of Stock Market Structure on Intertrade Time and Price Dynamics

Can Network Linkage Effects Determine Return? Evidence from Chinese Stock Market

The Leverage Effect on Wealth Distribution in a Controllable Laboratory Stock Market

Universal Behavior of Extreme Price Movements in Stock Markets

Stochastic Frontier Model Approach for Measuring Stock Market Efficiency with Different Distributions

Crisis-Like Behavior in China's Stock Market and Its Interpretation

Similar Documents

Fractal Profit Landscape of the Stock Market

Web Search Queries Can Predict Stock Market Volumes

Confidence and the Stock Market: An Agent-Based Approach

Dynamic Evolution of Cross-Correlations in the Chinese Stock Market

Impact of Stock Market Structure on Intertrade Time and Price Dynamics

Can Network Linkage Effects Determine Return? Evidence from Chinese Stock Market

The Leverage Effect on Wealth Distribution in a Controllable Laboratory Stock Market

Universal Behavior of Extreme Price Movements in Stock Markets

Stochastic Frontier Model Approach for Measuring Stock Market Efficiency with Different Distributions

Crisis-Like Behavior in China's Stock Market and Its Interpretation