New Thinking in Financial Market Regulation: Dismantling the “Split Share Structure” of Chinese Listed Companies

China’s distinctive set of stock market institutions was introduced in 1990. Among the characteristics of China’s stock markets was a strict separation between different categories of investors. Listed companies issued different categories of shares to state shareholders, domestic corporate investors, domestic individual investors, and foreign investors. By 2005, the barriers segmenting China’s stock market had been significantly relaxed. Domestic investors were allowed to purchase shares previously reserved for foreign investors, and approved foreign investors were allowed to purchase shares previously earmarked for domestic individuals. Nevertheless, a crucial barrier remained. An ongoing debate among Chinese academics, investors, and policy makers focused on how to resolve the “split share structure” (guquan fen zhi) in which a minority of shares were tradable while the majority of shares (namely those reserved for domestic corporate and state shareholders) were excluded from the market. The split share structure was blamed for distorting prices and inhibiting development of the stock market. This paper analyzes the policy adopted to address the split share structure. To what extent does this policy change reflect new thinking on the part of China’s market regulators? This paper argues that analysis of policy making in China’s capital markets can help to distinguish between two competing assessments of China’s political economy. One account sees China pursuing a gradualist strategy, slowly but steadily expanding the role of markets. Another account sees China trapped in a semi-marketized and increasingly corrupt development pattern. The implementation of the split share structure reform program provides evidence to support the gradualist account of incremental, but persistent, reform. Mary Comerford Cooper is an assistant professor in political science at the Ohio State University. Her recent research focuses on the politics of financial markets in China and Taiwan. Earlier versions of this paper were presented at the Comparative Politics Research Workshop/ Globalization, Institutions and Economic Security Workshop at Ohio State University in May 2007, and at the annual meeting of the Association for Chinese Political Studies in July 2007. I benefited greatly from the constructive and insightful comments of Bj?rn Alpermann, Melanie Barr, Jean-Marc Blanchard, Sarah Brooks, Joseph Fewsmith, Sujian Guo, Dane Imerman, Ryan Kennedy, Marcus Kurtz, Xiaoyu Pu, James Reilly, Alex Thompson, Daniel Verdier, Jianwei Wang, Alan Wiseman, Bin Yu, and an anonymous reviewer. I am also grateful for Lan Hu’s exceptional research assistance. All remaining flaws are purely my own.     

Overprovision and the licensing (Scotland) act 1976

This paper examines Scottish licensing law, in particular the granting of licenses to supply alcoholic liquor. Any application for a license must be granted unless one or more of four conditions are fulfilled. One of these, that the award would lead to overprovision, is the central concern of this study. The paper does not investigate why the consumption and distribution of alcohol are regulated nor why regulatory control takes the form it does. ¹ The starting point is rather that regulation exists and takes a particular form. Attention is focused on the operation of this regulatory control and with how it might be improved.In the next section, some of the key features of the licensing law and its appeals are reviewed, establishing the importance of evidence of the presence or otherwise of overprovision. Section II discusses the use of density of licensed premises as a measure of provision, indicates the problems, and argues that a measure might be refined and validated by entering it in an equation explaining the retail price of alcoholic beverages. Section III examines empirically the relationship between price and licensing density.     

Present but not prevalent: identifying the organizational correlates of researcher-practitioner partnerships in U.S. Law Enforcement

ABSTRACT

Federal funding streams, the International Association of Chiefs of Police, and policing executives and scholars alike have advocated for more researcher-practitioner partnerships in American law enforcement. While a few studies have explored the growth and prevalence of research partnerships in policing, less attention has been placed on the organizational correlates of such collaborative relationships. Using a nationally representative sample of US law enforcement agencies, the current study investigated participation in what we term ‘rigorous partnerships’ – more formal, long-term relationships between researchers and practitioners with increased opportunity for interactive knowledge exchange. Policy implications and directions for future research are discussed, with a specific focus on the barriers and impediments that both parties face for successful collaborative efforts and research translation.     

The Statecraft Effect: Assessment,Attitudes, and Academic Honesty

Abstract

This article uses a multimethod research design to compare Statecraft to non-Statecraft assignments and courses along three dimensions: student engagement, political attitudes, and academic honesty. The results indicate that Statecraft increased student engagement and academic honesty. In terms of political attitudes, students generally remained on the left side of the political spectrum, but shifted toward the right and became more hawkish by the end of a semester. Changes in attitude are more strongly associated not with playing Statecraft, but taking a political science class by the coauthor, or some other external variable. Statecraft, however, did reduce support for pacifism.     

Public capital stock and interstate variations in manufacturing efficiency

This study focuses on the role of public capital stock in contributing to interstate differences in productive efficiency in manufacturing. Our motivation is to assess the role of public capital as a source of persistent regional variations in efficiency, and thus determine if public infrastructure policies might reasonably be expected to alter the competitive environment of a state's manufacturing sector. We use a stochastic frontier production function model, explicitly incorporating infrastructure capital, to examine the relative performance of the aggregate manufacturing sector across states and over time. We calculate an index of productive efficiency and estimate the determinants of statewide variations in it. These results show that variations in per capita infrastructure stocks significantly affect manufacturing efficiency. Considering the behavior of public capital as both a direct and an indirect input furthers our understanding of the role of infrastructure and its implications for regional economic development policies.     

Metrological framework for selecting morphological characters to identify species and estimate developmental maturity of forensically significant insect specimens

Accurate age estimates of immature necrophagous insects associated with a human or animal body can provide evidence of how long the body has been dead. These estimates are based on species-specific details of the insects’ aging processes, and therefore require accurate species identification and developmental stage estimation. Many professionals who produce or use identified organisms as forensic evidence have little training in taxonomy or metrology, and appreciate the availability of formalized principles and standards for biological identification. Taxonomic identifications are usually most readily and economically made using categorical and qualitative morphological characters, but it may be necessary to use less convenient and potentially more ambiguous characters that are continuous and quantitative if two candidate species are closely related, or if identifying developmental stages within a species. Characters should be selected by criteria such as taxonomic specificity and metrological repeatability and relative error. We propose such a hierarchical framework, critique various measurements of immature insects, and suggest some standard approaches to determine the reliability of organismal identifications and measurements in estimating postmortem intervals. Relevant criteria for good characters include high repeatability (including low scope for ambiguity or parallax effects), pronounced discreteness, and small relative error in measurements. These same principles apply to individuation of unique objects in general.

Key points

• Metrological rigour can increase in forensic entomology by selecting measurements based on their metrological qualities.
• Selection of high-quality features for morphological identification of organisms should consider these criteria: (1) pronounced discreteness of features (minimising group overlap or maximizing interval); (2) high repeatability of assessment (such as symmetrical width rather than asymmetrical length); (3) small relative error in measurement (selecting the physically largest continuous rigid feature for measurement).
• These metrological principles also apply to individuation of unique objects in general.