Lin Shu | A spare tire for employment: Corporate bond issuance in China

On November 6, 2019, the Center for International Finance and Economic Research (CIFER) of the National Institute at Tsinghua University successfully held the 5th "CIFER Macroeconomics and International Economics Workshop" this semester. Lin Shu, an associate professor at the Chinese University of Hong Kong, was invited to visit the center and had in - depth discussions with teachers and students of the college on his latest research topics.

Professor Lin Shu obtained a Doctor of Economics degree from the University of Oklahoma in 2005. His research areas cover multiple fields such as international finance, monetary policy, and the Chinese economy (resume attached).

This time, Professor Lin Shu shared an academic report titled "A spare tire for employment: Corporate bond issuance in China". The article points out that government approval is one of the important characteristics of bond issuance in China, so government goals may affect bond issuance. Using the bond - issuance data of Chinese enterprises from 2006 to 2015, the article finds that the employment scale of enterprises is an important factor affecting the probability of corporate bond issuance. Enterprises with more employees have a higher probability of issuing bonds, and this conclusion is more obvious during economic downturns or credit crunches. In addition, corporate performance significantly affects the probability of corporate bond issuance, but the number of employees will significantly weaken the relationship between corporate performance and the probability of bond issuance, resulting in inefficient capital allocation.

China's bond market has developed rapidly in recent years, but research on China's bond market is still very scarce. The article by Professor Lin Shu and his co - authors is the first to study the bond - issuance problem of Chinese enterprises from the perspective of the number of employees, improving and expanding the relevant research on China's bond market and supplementing the relevant literature on financial resource misallocation. Against the backdrop of the rapid development of China's bond market, this research has important practical significance.

Resume of Lin Shu