Vol 10, No 4 (Published)
Full Issue
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Open AccessOriginal Research Articles
Article ID: 2369
Analysis on the Cost Allocation and Economic and Social Benefits of Reality Showsby Lanqi Zhang
Financial Forum, Vol.10, No.4, 2021; 116 Views, 14 PDF Downloads
Reality shows are an innovative form of shows that combine the flexibility of the ruleset, the authenticity of the participants' performance, and the participation and interaction of the audience. Reality shows originated in Europe and the United States. They were introduced to China in the late 1990s. They have experienced a development process from imitation to localization. They are currently in a stage of rapid growth. With the rapid development of reality shows, a series of issues such as its public welfare, cultural nature, and value orientation have also been reflected. Scholars in various disciplines such as sociology and communication have analyzed and put forward the reality show from development suggestions from different perspectives. Based on the research of previous scholars, this paper measures the economic effects of reality shows from the perspective of cost-benefit, and measures the public welfare of reality shows from the perspective of external effects, and the cost allocation of various types of reality shows different suggestions were made.
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Open Access
Original Research Articles
Article ID: 2611
Effectiveness of CAPM Model for Funds Based on Margin Trading in Chinese Market under the COVID-19 Pandemicby Mingke Zhang
Financial Forum, Vol.10, No.4, 2021; 110 Views, 9 PDF Downloads
The applicability of CAPM model in China was studied under the situation that the global economy was greatly affected. The results show that the stock exchange market in China is less affected by the epidemic. Still in China's securities market, the linear impact of systematic risk on the return on assets is not significant, while the non-systematic risk has a relatively significant linear impact on the return on assets. The CAPM model is not fully applicable in China's securities market. Except that the financial market in China is not sound enough, the reason for the inapplicability of the model would be the drawbacks of the model itself as the model is too sophisticated in its assumptions and there are many factors not considered, and the research direction of improving the model are summarised as pay attention to 6 types of asset pricing anomalies represented by value anomalies, and provide explanations for the causes of these pricing anomalies.
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Open Access
Original Research Articles
Article ID: 2349
Does Buffett’s Value Investing Strategy Really Work Well, Especially During the 2020 Epidemic? Evidence from the American Stock Marketby Rongzhen Wu, Yasmin Begum
Financial Forum, Vol.10, No.4, 2021; 134 Views, 13 PDF Downloads
Warren Buffett’s value investing strategy is famous around the world which is regarded as the key reason for his success. But due to the huge losses incurred by Buffett and Berkshire Hathaway during the 2020 epidemic, some people start to doubt the validity of the value investing strategy. Therefore, the research questions in this paper focus on the quantification, validity, and robustness of Buffett’s value investing strategy in the American stock market. Consequently, three results are drawn from this research: following the idea of Buffett’s value investing strategy, the B-score constructed by 6 sub-indexes can be used to quantify the stock’s value; the B-score had a decent ability to predict stock’s future returns from 2015 to 2019, which infers the validity of value investing strategy when the economy is booming; the B-score lost the ability to predict stock’s future returns in 2020, but this result is not adequate to deny the robustness of Buffett’s value investing strategy when facing the extreme situations like the 2020 epidemic for many reasons, which are discussed at the end of this paper.
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Open Access
Original Research Articles
Article ID: 2353
Potential Causes Related to Stock Market Volatility During COVID-19: Insights into the Performances in the Usby Xin Lian, Fernando Echevarria
Financial Forum, Vol.10, No.4, 2021; 107 Views, 9 PDF Downloads
The research aims to figure out the significant factors causing the volatility moves in the period from Feb 10 to Dec 28, 2020, which covers the outbreak and duration of COVID-19 in 2020, among the candidates: number of reports (cases, deaths, tests, and infection rate), number of medical resources needed (all beds needed, ICU beds needed, and invasive ventilators needed), and people’s anticipation toward reality (stock market, the pandemic, state of the economic and personal finance). After performing OLS regressions with stepwise regressions forward further, whose independent variables are chosen based on the values of VIF, we conclude that people’s focus on coronavirus is the most significant factor that induces the volatility, and the VIX values evolve dynamically. Nevertheless, the conclusions are somehow not robust as expected: in the second half of the period, not only none of the candidates are shown to have any influence on the volatility, but also the VIX series is proved to be not autocorrelated. By the results of the study, it is important not only to control the further spread of the pandemic but also to find approaches to stabilize people’s emotions towards the aspects of life which are affected by the pandemic. Apart from the meaningful insights from the research, the research paves the way for further studies in the future.
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Open Access
Original Research Articles
Article ID: 2220
The Impact of Strict Cancellation of Public Events Policy on the Stock Market Globally During the COVID-19: An Event Studyby Kefan Jiang
Financial Forum, Vol.10, No.4, 2021; 120 Views, 7 PDF Downloads
The article aims to evaluate the impact of cancellation of public events policy on the stock markets on a global scale. Three questions related to the policy would be researched. First, what are the patterns of the thirty countries’ abnormal returns during the event window? Second, how to explain the patterns of the average abnormal return and cumulative abnormal return of the sample during the event window? Third, does the strict cancellation of public events have a positive impact on the stock markets in terms of abnormal return? Researcher finds that the policy on aggregate has a negative impact on the stock markets among the thirty countries in the short term while a positive impact on the stock markets in the long term. The results indicate that the investors at first consider the policy would reduce economic activities so as to lead a negative effect on stock markets, but the policy has a great positive impact on restricting the growth of the confirmed cases due to COVID-19 which boosts the investors’ confidence on resumption of economic activities. Finally, the stock indices have a upward trend after the announcement of policy in the long term. The article can provide investment advice for investors when governments imposing the policy. The investors can invest in the stock indices on a global scale when there is a deep decrease in the stock markets due to the policy. Then it would earn a positive return around 20 days later.
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Open Access
Original Research Articles
Article ID: 2218
Research on the Quality of Accounting Information Disclosure of Listed Companiesby Yuan Li
Financial Forum, Vol.10, No.4, 2021; 462 Views, 10 PDF Downloads
With the rapid growth of China's economy and the continuous improvement of the social level, the number and scale of listed companies are also growing rapidly. Despite the continuous development of China's economy, the listed companies in China are faced with difficulties due to the imperfect system, unreasonable structure and quality problems of accounting information disclosure. Accounting information disclosure is an indispensable force in economic activities. Investors can rely on the information disclosed by it to make correct investment decisions, reduce transaction costs in the market, and promote the healthy development of market economy and the normal operation of society. The improvement of the quality of accounting information disclosure plays a vital role in the development of listed companies, so China's listed companies should always carry the concept of improving the quality of accounting information disclosure throughout the development of the company. This paper discusses the status quo of information disclosure quality of listed companies in China, analyzes the main existing problems, and puts forward countermeasures to improve the quality of accounting information disclosure of listed companies in view of the existing problems, hoping to play a certain positive impact on the development of information disclosure quality of listed companies in China.
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Open Access
Original Research Articles
Article ID: 2612
Motivation and Risk Control of Cross-Border M&A of Chinese Enterprisesby Lijun Lin
Financial Forum, Vol.10, No.4, 2021; 270 Views, 13 PDF Downloads
With the deepening development of the global economic integration, more and more Chinese enterprises have begun to implement the strategy of cross-border mergers and acquisitions. Despite many drivers pushing companies to adopt multinational M&A strategy such as the national policy, enterprise competitiveness, sales channels, to evade trade barriers, etc., but many risks implied by transnational merger and acquisition also to be reckoned with, such as decision-making risk, financial risk, valuation risk and integration risk, etc., of which motivation and risk and how to guard against risks, we need to study.
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Open Access
Original Research Articles
Article ID: 2613
Common Problems and Analysis of Export Tax Rebate of Foreign Trade Enterprisesby Yiling Ren
Financial Forum, Vol.10, No.4, 2021; 765 Views, 9 PDF Downloads
After the financial crisis in 2008, China's foreign trade continued to develop and gradually matured in a complicated international situation. In 2020, China's foreign trade was severely impacted by the uncontrollable factor of the Covid-19 epidemic, thus presenting a "different" picture. The export situation of many foreign trade enterprises is not optimistic. China attaches great importance to the export tax rebate demands of foreign trade enterprises, and has issued many targeted measures to ease the pressure on enterprises to a certain extent. However, there are still some problems which affect the economic development of foreign trade companies and the tax burden.
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Open Access
Original Research Articles
Article ID: 2501
On the Legal Relief of Insurance Fraud——Take the Right to Cancel the Insurance Law and the Right to Cancel the Civil Law as the Wayby Ruitong Yang
Financial Forum, Vol.10, No.4, 2021; 101 Views, 8 PDF Downloads
With the development of science and technology, insurance fraud is not uncommon, but my country's legal remedies for this are not clear. This article first explains the concept of insurance fraud and compares and analyzes the difference between the insurer’s right of rescission and revocation, and summarizes the current application dilemmas of the two rights. Next, the author analyzes the preconditions for the insurer to exercise the right of termination according to the law to distinguish the two rights again, and then introduces the current thinking dimensions of scholars from the two mainstream viewpoints of "exclusion of application theory" and "selection application theory". At the same time Combining with extraterritorial regulations and summarizing the advanced experience that our country can learn from, the author finally puts forward suggestions on regulating the application of the insurer's right of cancellation and cancellation from the subjective aspects of the insurant and the insurer in anticipation of resolving the dilemma of the conflict of rights.
