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All Outputs (19)

State Ownership in China: An Equity Network Perspective (2025)
Book Chapter
Cai, J. J., Gu, X., Zhao, L., & Zhu, W. (2025). State Ownership in China: An Equity Network Perspective. In H. Fang, & M. W. Meyer (Eds.), The Arc of the Chinese Economy (pp. 156-191). Cambridge University Press. https://doi.org/10.1017/9781009649339.007

This chapter introduces a novel measure of state-owned enterprises (SOEs) in China using an equity network perspective. Leveraging a comprehensive firm registration dataset from SAIC, the authors construct dynamic ownership trees that trace direct an... Read More about State Ownership in China: An Equity Network Perspective.

Implicit guarantees and the rise of shadow banking: The case of trust products (2023)
Journal Article
Allen, F., Gu, X., Li, C. W., Qian, J. "., & Qian, Y. (2023). Implicit guarantees and the rise of shadow banking: The case of trust products. Journal of Financial Economics, 149(2), 115-141. https://doi.org/10.1016/j.jfineco.2023.04.012

Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-be... Read More about Implicit guarantees and the rise of shadow banking: The case of trust products.

Political ties and raising capital in global markets: Evidence from Yankee bonds (2022)
Journal Article
Ambrocio, G., Gu, X., & Hasan, I. (2022). Political ties and raising capital in global markets: Evidence from Yankee bonds. Journal of Corporate Finance, 74, 102223. https://doi.org/10.1016/j.jcorpfin.2022.102223

This paper examines whether state-to-state political ties help firms obtain better terms when raising funds in global capital markets. Focusing on the Yankee bonds market, we find that issuances by firms from countries with close political ties with... Read More about Political ties and raising capital in global markets: Evidence from Yankee bonds.

Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China (2022)
Journal Article
Allen, F., Gu, X., & Jagtiani, J. (2022). Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China. Journal of International Money and Finance, 124, 102625. https://doi.org/10.1016/j.jimonfin.2022.102625

Fintech and decentralized finance have penetrated all areas of the financial system and have improved financial inclusion in the last decade. In this paper, we review the recent literature on fintech, cryptocurrencies, stablecoins, and central bank d... Read More about Fintech, Cryptocurrencies, and CBDC: Financial Structural Transformation in China.

Institutions and Corporate Reputation: Evidence from Public Debt Markets (2022)
Journal Article
Gu, X., Hasan, I., & Lu, H. (2023). Institutions and Corporate Reputation: Evidence from Public Debt Markets. Journal of Business Ethics, 183, 165–189. https://doi.org/10.1007/s10551-021-05020-x

Using data from China’s public debt markets, we study the value of corporate reputation and how it interacts with legal and cultural forces to assure accountability. Exploring lawsuits that change corporate reputation, we find that firms involved in... Read More about Institutions and Corporate Reputation: Evidence from Public Debt Markets.

A Survey of Fintech Research and Policy Discussion (2021)
Journal Article
Allen, F., Gu, X., & Jagtiani, J. (2021). A Survey of Fintech Research and Policy Discussion. Review of corporate finance, 1(3-4), 259-339. https://doi.org/10.1561/114.00000007

The intersection of finance and technology, known as fintech, has resulted in the dramatic growth of innovations and has changed the entire financial landscape. While fintech has a critical role to play in democratizing credit access to the unbanked... Read More about A Survey of Fintech Research and Policy Discussion.

Shadow banking in China compared to other countries (2020)
Journal Article
Allen, F., & Gu, X. (2021). Shadow banking in China compared to other countries. Manchester School, 89(5), 407-419. https://doi.org/10.1111/manc.12331

China's shadow banking has been rising rapidly in the last decade, mainly driven by regulations for banks, the Fiscal Stimulus Plan in 2008 and credit constraints in restrictive industries. This sector has continued growing although the regulators re... Read More about Shadow banking in China compared to other countries.

Political influence and financial flexibility: Evidence from China (2018)
Journal Article
Gu, X., Hasan, I., & Zhu, Y. (2019). Political influence and financial flexibility: Evidence from China. Journal of Banking and Finance, 99, 142-156. https://doi.org/10.1016/j.jbankfin.2018.12.002

This paper investigates how political influence affects firms’ financial flexibility and speed of adjustment toward target leverage ratios. We find that at the macro level, firms in environments with high political advantages, proxied by provincial a... Read More about Political influence and financial flexibility: Evidence from China.

How creditor rights affect the issuance of public debt: The role of credit ratings (2018)
Journal Article
Gu, X., Kadiyala, P., & Mahaney-Walter, X. W. (2018). How creditor rights affect the issuance of public debt: The role of credit ratings. Journal of Financial Stability, 39, 133-143. https://doi.org/10.1016/j.jfs.2018.11.001

We propose that credit ratings act as an information channel which, combined with more power being given to creditors by countries strengthening creditor rights, leads to an increase in the supply of public debt. From a firm-level dataset covering 51... Read More about How creditor rights affect the issuance of public debt: The role of credit ratings.

Does economic structure determine financial structure? (2018)
Journal Article
Allen, F., Bartiloro, L., Gu, X., & Kowalewski, O. (2018). Does economic structure determine financial structure?. Journal of International Economics, 114, 389-409. https://doi.org/10.1016/j.jinteco.2018.08.004

In this paper, we examine the relationship between the structure of the real economy and a country's financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country's financial... Read More about Does economic structure determine financial structure?.

The Interplay between Regulations and Financial Stability (2018)
Journal Article
Allen, F., & Gu, X. (2018). The Interplay between Regulations and Financial Stability. Journal of Financial Services Research, 53(2-3), 233-248. https://doi.org/10.1007/s10693-018-0296-7

The crisis demonstrated that microprudential regulation focusing on the risks taken by individual banks is not sufficient to prevent crises. This is because it ignores systemic risk. Six types of systemic risk are identified, namely: (i) panics – ban... Read More about The Interplay between Regulations and Financial Stability.

An Overview of China's Financial System (2017)
Journal Article
Allen, F., Qian, J. “., & Gu, X. (2017). An Overview of China's Financial System. Annual Review of Financial Economics, 9, 191-231. https://doi.org/10.1146/annurev-financial-112116-025652

We provide a review of China's financial system and consider the challenges it faces and future reforms. The formal sectors of the financial system, which include a fast-growing stock market and are dominated by a banking sector with large state-owne... Read More about An Overview of China's Financial System.

Creditor rights and the corporate bond market (2016)
Journal Article
Gu, X., & Kowalewski, O. (2016). Creditor rights and the corporate bond market. Journal of International Money and Finance, 67, 215-238. https://doi.org/10.1016/j.jimonfin.2016.05.002

This study examines whether investor protection affects capital markets, specifically the development of corporate bond markets versus equity markets. Using a dataset of 42 countries, we show that countries with strong creditor rights have more devel... Read More about Creditor rights and the corporate bond market.

Financial crisis, structure and reform (2012)
Journal Article
Allen, F., Gu, X., & Kowalewski, O. (2012). Financial crisis, structure and reform. Journal of Banking and Finance, 36(11), 2960-2973. https://doi.org/10.1016/j.jbankfin.2012.06.002

In this study, we examine the relationship between the structure of financial systems and financial crises. Using cross-country data on financial structures and crises, we find that there is a significant short-term reversal in development of the ban... Read More about Financial crisis, structure and reform.