Abstract:Appeal to authority is a wellrecognized strategy in climate communication aimed at improving public response. However, existing research has primarily assessed the inclusion of this strategy, neglecting the impact of its frequency on public response. This study explores how the frequency of appeals to authority influences public response to climate communication and how the type of authority structure moderates this influence, using comprehensive text analysis and two experimental studies. The results reveal that frequent appeals to authority, compared to occasional ones, significantly reduce public attitude and emotional response to climate communication, mediated by the perceived intent to persuade. This conclusion holds only under a lowequilibrium authority type structure. Conversely, in a highequilibrium authority type structure, frequent appeals to authority significantly enhance public attitude and emotional response, independent of the perceived intent to persuade. These insights offer valuable guidance for effectively utilizing the appeal to authority strategy in climate communication, aiming to improve public response.

Abstract:In practice, Apple iTunes can sell digital music through a secondary market approach, while Amazon Kindle still utilizes dynamic pricing to sell ebook without resale. Compared to dynamic pricing, under what conditions should the platform use a secondary market to sell digital information goods？To solve this problem, two dynamic game models are established to compare the secondary market and dynamic pricing, and some interesting conclusions are as follows: (i) If all consumers are strategic, the optimal markdown pricing strategies will lead to no consumers waiting to buy, which is equivalence to a fixed price. (ii) The optimal price for opening secondary market is not greater than the first period price under dynamic pricing, and secondary markets can increase total consumers’surplus. (iii) Results show that the secondary market outperforms dynamic pricing as long as the wholesale price is larger than a certain threshold value. At last, a numerical experiment is conducted to do sensitivity analysis on the related parameters.

Abstract:This paper considers the effect of ambiguity on optimal capital structure with a subsidy to investment in combination with a taxation of future profits. It is shown that it might be optimal for the government to provide an investment subsidy when the current tax rate is lower and to provide a tax cut when current tax rate is higher. In addition, quantitative analysis displays that the presence of model uncertainty reduces firm value, raises credit spread, and leads to deleveraging. However, agency costs decrease when decisionmakers are concerned about ambiguity. From this standpoint, our model provides a behavioral justification for the higher financing cost and zero leverage for small and medium enterprises.

Abstract:Unique text narratives can capture attention and leave a lasting impression on readers. In the Chinese fund market, managers write periodic reports to introduce fund products to investors.Fund managers summarize their past investment strategies and outline future plans without adhering to strict templates in the sections titled “An Analysis of Fund’s Investment Strategy and Operation” and “A Brief Outlook on Macroeconomic, Securities Market and Industry Trends” of the periodic reports. In this case, can the uniqueness of fund texts attract investors’attention? This paper measures the uniqueness of fund texts based on the texts of analysis and outlook section of the fund’s annual and semiannual reports from 2010 to 2022. Our findings indicate that investors are attracted by funds with higher report uniqueness when making investment decisions. This suggests that greater textual uniqueness can lead to greater cash inflows in the future, primarily among individual investors.In this way, managers of underperforming funds are more motivated to produce uniquely crafted texts to compensate for outflows caused by the funds’ poor performance.Furthermore, from the perspective of investor preferences, this flowattracting ability can be affected by factors including degree of information asymmetry, the historical performance of the fund, and market macro〖JP2〗 performance to some extent. Finally, the paper finds that report uniqueness fails to imply beneficial information, which means investors won’t 〖JP〗obtain higher returns from it. Our study reveals how fund managers take advantage of investors’ irrational preferences for unique text in order to make a profit, provides further evidence of fund managers’catering behavior, and suggests that supervisory bodies should develop appropriate guidelines to direct the content of reports while also educating investors to approach fund reports with a rational and holistic perspective.

Abstract:The realization of carbon peaking and “Carbon Neutrality” has become one of the main goals of government and enterprise reform. Based on data from the “Carbon Neutrality” concept plate from iFinD, this paper empirically analyzes the supporting role of the capital market on the macro policy release, studies the feedback of the capital market on this policy goal, and gives an empirical explanation of the policy effect based on various order trading data and social attention data. The findings show that, compared with the control group of stocks with similar characteristics, “Carbon Neutrality” concept stocks have significantly positive return performances after the announcement of the dual carbon goal, and this positive feedback occurs in advance. Further, trading data form different kinds of orders play heterogeneous roles in the policy effect. The positive return feedback of “Carbon Neutrality” concept stocks mainly comes from the superlarge trades, which appears after the policy is announced and before the concept stocks are launched. In contrast, medium and small trades fail to play a supporting role, revealing the essential role of institutional investors. Additionally, sociallevel attention also plays a vital role in the feedback on the dual carbon policy. Baidu searchindex data can significantly improve the return of “Carbon Neutrality” concept stocks, strengthen the significant positive impact of superlarge trades, and speed up information absorption. To sum up, this paper reports the positive feedback of the capital market on the national macro policies and reveals the essential role of superlarge orders in the market. The findings are important to encourage enterprises to develop and expand doublecarbonrelated initiatives and ultimately achieve the joint promotion of the capital market and the real economy.

Abstract:Based on the diversified investment of institutional investors in the industry, this paper explores the influence of common institutional ownership on the pricing efficiency of the capital market from the perspective of stock price synchronicity. It is found that common institutional ownership can generate a “synergy effect” and reduce firms’ stock price synchronicity to maximize the portfolio value. This result is mainly driven by an “information efficiency effect”, excluding the “noise trading” hypothesis. The mechanism analysis shows that common institutional ownership can improve the information disclosure quality by “voting with hands” and “voting with feet”, with the impact of “voting with feet” being stronger than “voting with hands”. The heterogeneity test finds that under conditions of low economic policy uncertainty, intense industry competition, and nonSOEs, common institutional ownership had a more significant inhibitory effect on stock price synchronicity. In addition, different types of common institutional ownership have heterogeneous effects on firms’ stock price synchronicity. This paper not only enriches the study of the factors influencing stock price synchronicity but also discovers a new mechanism of corporate governance. The findings provide a theoretical basis for regulating institutional investors’ diversified investment behaviors in the industry and improving the pricing efficiency of the capital market.

Abstract:This paper finds that fund managers’confidence is a new factor, in addition to the traditional optimistic (pessimistic) tone, that affects the performance of Chinese mutual funds. This paper uses the annual and semiannual reports of mutual funds in China from 2010 to 2020 to construct fund managers’confidence indicators. The empirical results show that the managers’ confidence indicator has a positive predictive ability for mutual fund’s future performance. After being adjusted by the Chinese threefactor model, the arbitrage portfolio significantly earns an annualized excess return of more than 2.4〖WTXT〗%〖WTBZ〗. Further, fund managers’confidence contains incremental information beyond the traditional optimistic (pessimistic) tone. On average, arbitrage portfolios earn an annualized excess return of more than 2〖WTXT〗%〖WTBZ〗 when controlling for indicators of the manager’s optimistic (pessimistic) tone. Finally, managers’confidence and “overconfidence” also distinguished. Confident fund managers are more committed to their investment philosophy and reduce the frequency of future trades. Fund managers benefit from the fact that fund turnover decreases as confidence increases.

Abstract:The comment letter policy represents a systematic innovation made by Chinese Securities Regulatory Agencies based on foreign experience. While recent literature has examined the impact of comment letters on standardized financial information disclosure, research on their impact on nonstandardized textual information disclosure is limited. This paper uses textual analysis of company annual reports to investigate the influence of comment letters on management tone. Our findings indicate that comment letters significantly reduce the tone of top management, particularly through increased use of negative words in the annual report text. This effect is more pronounced for firms with poorer performance, smaller scale, and lower analyst attention. Meanwhile, comment letters on financial issues have a greater impact than those on nonfinancial issues. Mediation effect model results show that comment letters can significantly reduce insider trading behavior by negatively influencing management tone, indicating a governance effect on nonstandard textual information tone. This paper expands research on comment letters’outcomes from quantitative financial information to qualitative text intonation and provides direct evidence of the impact of macro policies on management intonation.

Abstract:Early warning of bond default risk is to predict the future bond default status based on the enterprise’s financial factors, nonfinancial factors, and external macro factors. For different combinations of variables, the effect of default prediction is different; there must be an optimal combination of indicators, which can minimize the error of default prediction. For different thresholds, the effect of default prediction is different, and there is bound to be an optimal threshold of default judgment, which can distinguish between the bonds that default from those that do not to the greatest extent. This paper uses the random forest model to select the feature combination, and studies the default risk of bonds based on Logit model. The first contribution of this paper is in the optimal feature selection. Under the premise of the minimum 〖WTBX〗TypeII Error〖WTBZ〗, an optimal random forest is obtained by maximizing the 〖WTBX〗AUC〖WTBZ〗 for different numbers of decision trees. According to the ranking of the importance of indicators, the optimal feature combination can be obtained by forward selection to maximize 〖WTBX〗AUC〖WTBZ〗. The second contribution is in the determination of the optimal default judgment threshold. Taking the minimum weighted sum of the 〖WTBX〗TypeI Error〖WTBZ〗 and 〖WTBX〗TypeII Error〖WTBZ〗 as the objective function, the optimal threshold of logical regression is deduced. The third is the prediction accuracy of this model is higher than popular big data prediction models. Based on data from bonds issued by Chinese bonds listed companies from 2014 to 2018, the empirical research shows that the key indicators affecting China’s medium and shortterm default prediction are： Monetary capital / shortterm debt, net profit, the number of bonds issued by issuers, industry prosperity index, and industry entrepreneur confidence index. The key indicators affecting shortterm default prediction are： Monetary assets, quick ratio, fixed asset investment price index, and money supply 〖WTBX〗M〖WTBZ〗0. The key indicators that have an impact on the mediumterm default forecast are registered capital of the issuer, repayment amount of bonds at maturity, and bond maturity index.