scholarly journals Does the Underwriter Reputation Affect the Pricing of Local Government Bonds in China?

2020 ◽  
Vol 13 (7) ◽  
pp. 45
Author(s):  
Hongdan Ji
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Large Scale ◽  
Securities Market ◽  
Government Bonds ◽  
Government Interventions ◽  
Securities Company ◽  
Underwriter Reputation ◽  
The Cost ◽  
High Degree

As the product of the combination of fiscal and financial, local government bonds should also follow the pricing mechanism of the securities market even under the special financial system in China. This paper uses Heckman's two-stage model to investigate whether the mechanism of underwriter reputation affects the pricing of local government bonds. The empirical results show that local governments tend to choose securities company underwriters with high reputation when they issue bonds with large scale, long maturity, and call right which have high degree of information asymmetry, and this tendency has an obvious time trend. However, high-reputation securities company underwriters failed to play the role of information intermediary to reduce the cost of local governments. On the contrary, implicit guarantees and government interventions induced the commercial banks to depress their quotations even leading to “interest rate upside down”, which resulted in the lack of securities company underwriters. In order to play the mechanism of underwriter reputation to promote the marketization of local government bonds pricing, this paper proposes to eliminate government interference, guide underwriters to strengthen the construction of their reputation, promote the marketization of underwriting fees and strengthen the supervision of underwriters.

scholarly journals UKRAINIAN STOCK MARKET: STATE AND PROSPECTS OF DEVELOPMENT

2020 ◽  
Vol 11 (87) ◽  
Author(s):  
Okseniuk Kateryna ◽  
Keyword(s):  
Stock Market ◽  
Innovation Policy ◽  
Stock Exchange ◽  
Securities Market ◽  
Stock Exchanges ◽  
Government Bonds ◽  
Market State ◽  
Legislative Framework ◽  
High Degree ◽  
Securities Trading

The article is devoted to the study of the current state, problems and prospects of development of the Ukrainian stock market. It is proved that the stock market is a tool for implementing the state's Innovation Policy and a priority factor in mobilizing financial and capital resources. Stock market commodities are securities (stocks, bonds, etc.). Trends, features of functioning and development of the Ukrainian stock market are analysed. The analysis of the main indicators of exchanges, the structure and volume of exchange contracts with securities is carried out. The structural distribution of exchange contracts by trading organizers is established. The analysis of operations with securities on the organized market, unorganized market and stock exchanges of the country is carried out. The largest volume of trading on financial instruments on trade organizers in 2019 was recorded with government bonds of Ukraine – UAH 295 billion according to the National Securities and stock market Commission, the exchange market during 2019 saw consolidation of securities trading on two stock exchanges “Perspektyva” and “PFTS Ukraine Stock Exchange”: 98.7% of the value of exchange contracts. Analysis of the main indicators that determine the state of the stock market has shown that the modern securities market of Ukraine is characterized by an extremely high degree of fragmentation, limited liquidity and a variety of types of securities, which, in turn, are the main obstacles to the development of the stock market and the capital market as a whole. Attention is focused on the main problems that hinder the functioning of the stock market. It is proved that the development of the stock market is hindered by: insufficient competitiveness of the domestic stock market; imperfect tax incentives for market development; low level of corporate governance development; imperfect regulatory and legislative framework of Ukraine; low liquidity and capitalization. The directions of development of the stock market of Ukraine are proposed: improving the efficiency of regulation of issuers; stimulating the inflow of investment to the stock market; ensuring reliable and efficient functioning of the market infrastructure; ensuring the functioning of the unified state policy for stimulating the improvement of the investment climate.

scholarly journals Local Government Debt and Municipal Bonds in China: Problems and a Framework of Rules

2014 ◽  
Vol 31 (2) ◽  
pp. 23-53 ◽  
Author(s):  
Xingyuan Feng
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Debt Financing ◽  
Municipal Bonds ◽  
Local Democracy ◽  
Government Bonds ◽  
Fiscal Transparency ◽  
Current State

Local governments in China are facing heavy debt burdens, a low level of fiscal transparency and a lack of constraints by local democracy. Since 2008, local government debts have skyrocketed. This article analyses the current state and features of local government debts and the two kinds of 'quasi municipal bonds' in China—urban investment bonds and local government bonds—along with their problems and risks. It examines the risks connected with local government debts and these bonds from the perspectives of public finance and political economy. It concludes with a discussion of a framework of rules for local government debt financing, especially for the issuance of municipal bonds in China.

scholarly journals Correlation between Local Eid-al-Fitr Homecoming (Mudik) with Coronavirus Disease-19 during Ramadhan Season Amidst Large-scale Social Distancing in Indonesia

2020 ◽  
Vol 8 (T1) ◽  
pp. 570-573
Author(s):  
Meita Veruswati ◽  
Al Asyary ◽  
Rony Darmawansyah Alnur ◽  
Guspianto Guspianto
Keyword(s):  
Data Analysis ◽  
Local Government ◽  
Local Governments ◽  
Large Scale ◽  
Secondary Data ◽  
Transmission Peak ◽  
Surveillance Data ◽  
Ministry Of Health ◽  
Social Distancing ◽  
The Difference

BACKGROUND: In anticipation of coronavirus disease (COVID)-19’s transmission peak, Eid-al-Fitr homecoming (mudik) has officially been banned by the Indonesian government interlocal but not local in welcoming this religious Muslim celebration. This local Mudik is held by traveling among regional provinces and is still allowed by each local government, including Java, which has the highest transmission of COVID-19 in Indonesia. AIM: This study aims to present the difference between COVID-19 status before and during local Mudik on Java during Ramadhan with the implementation of large-sale social distancing applied in Jakarta, Indonesia. METHODS: This research was employed by secondary data analysis that was obtained from surveillance data from related authorities, including the Ministry of Health and all local governments of Java, which consisted of four provinces and Jakarta. Incidence and suspect statuses of COVID-19, which were examined in the study, were presented in daily rates with before and during local Mudik in four provinces: Jawa Barat, Yogyakarta, Banten, and Jawa Tengah. RESULTS: The number of positive confirmed patients differed significantly with before and during local Mudik (p < 0.05; mean difference = −/negative values). CONCLUSION: This study’s findings showed that the local Mudik increased the number of COVID-19 cases in four provinces in Java, which these provinces were designated as Mudik destinations by travelers coming from Jakarta during the end of Ramadhan season.

A prediction model for the secure issuance scale of Chinese local government bonds

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bowen Jia ◽  
Jiaying Wu ◽  
Juan Du ◽  
Yun Ji ◽  
Lina Zhu
Keyword(s):  
Neural Network ◽  
Local Government ◽  
Local Governments ◽  
Back Propagation ◽  
Back Propagation Neural Network ◽  
Government Bonds ◽  
Content Type ◽  
Kmv Model ◽  
Fiscal Revenue ◽  
Chinese Local Government

Purpose The purpose of this paper is to calculate the local guaranteed fiscal revenue with the local fiscal revenue of 31 provinces, and predict their guaranteed fiscal revenue in 2018 with the artificial neural network (ANN). Design/methodology/approach The principal components analysis (PCA), particle swarm optimization (PSO) and extreme learning machine (ELM) model was designed to produce the inputs of KMV model. Then the KMV model was used for obtaining the default probabilities under different issuance scales. Data were collected from Wind Database. MATLAB 2018b and SPSS 22 were used in the field of modeling and results analysis. Findings This study’s findings show that PCA–PSO–ELM proposed in this research has the highest accuracy in terms of the prediction compared with ELM, back propagation neural network and auto regression. And PCA–PSO–ELM–KMV model can calculate the secure issuance scale of local government bonds effectively. Practical implications The sustainability forecast in this study can help local governments effectively control the scale of debt issuance, strengthen the budget management of local debt and establish the corresponding risk warning mechanism, which could make local governments maintain good credit ratings. Originality/value This study sheds new light on helping local governments avoid financial risks effectively, and it is conducive to establish a debt repayment reserve system for local governments and the proper arrangement for stock debt.

scholarly journals Research on Local Government Governance and Enterprise Social Responsibility Behaviors under the Perspective of Cournot Duopoly Competition: Analyzing Taxi Companies and Online Car-Hailing Service Companies

2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Xintao Li ◽  
Zaisheng Zhang
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Dynamic Game ◽  
Regulatory System ◽  
Cost Savings ◽  
Service Companies ◽  
Regulatory Policies ◽  
Governance Model ◽  
Dynamic Game Model ◽  
The Cost

Clarifying the rational choice strategy of local governments and enterprises is crucial for promoting control on the failure of taxis and online car-hailing service companies to fulfill their social responsibilities. The local government can reduce the negative externalities and irresponsibility of such companies by improving the regulatory system; thus, it is important to build a governance model that bridges tradition and modernity. This paper, on the basis of summarizing the achievements of the predecessors, builds a mixed dynamic game model among the local government, online car-hailing service companies, and taxi companies; analyzes the relationship between local government preference, execution, and governance of irresponsible enterprise behaviors; and analyzes the equilibrium solution between local government and duopoly enterprises behavior game deeply. The results show that the key to governance irresponsible companies is to make the punishment cost higher than the cost savings for irresponsible behaviors; no matter what the preference of the local government no-governance of online car-hailing service companies’ irresponsible behaviors may persist; and local government ambivalence when regulating irresponsible companies is derived from the complex relationship between social benefits and company interests. Finally, through the analysis of the equilibrium results for the above model, this paper provides suggestions on regulatory policies so as to provide theoretical support and a decision-making basis for establishing scientific, universal, and feasible governance policies and offering responsible methods of urban transportation.

Investigation of local governments’ preparation for evacuation in nuclear emergency in Japan

2020 ◽  
Vol 55 (3) ◽  
pp. 237-246
Author(s):  
M. Sakamoto ◽  
T. Tsujiguchi ◽  
T. Koiwa ◽  
K. Ogura ◽  
M. Yamaguchi ◽  
...  
Keyword(s):  
Local Government ◽  
Emergency Response ◽  
Local Governments ◽  
Nuclear Power ◽  
Large Scale ◽  
Government Officials ◽  
Evacuation Drills ◽  
Evacuation Plan ◽  
Nuclear Emergency ◽  
Local Government Officials

In Japan, the Nuclear Emergency Response Guidelines were announced in 2015 after the Fukushima Daiichi nuclear power plant accident, and each local government is currently formulating a plan for the evacuation of its residents and a subsequent radioactive contamination inspection. However, there are no reports about the state of preparation of the local governments. Therefore, in this study, we conducted a questionnaire survey regarding the preparation status of each local government responsible for the evacuation of its residents and contamination inspections in Japan and the education training status of staff and summarized the results. Results indicated that 17 of 21 local governments, which answered our questionnaire, have been conducting large-scale evacuation drills at least once a year since 2015 in Japan, demonstrating a high awareness of nuclear emergency response. Conversely, results revealed that the number of local government officials familiar with the evacuation plan and/or contamination inspection flow was small, and issues about education for local government officials were discovered. Statistical analysis suggested that the frequency of training might be related to the high educational needs for risk communication.

scholarly journals Recreational Homes: Town Characteristics and Variations in Concentrations

1979 ◽  
Vol 8 (2) ◽  
pp. 133-141
Author(s):  
Pamela H. Pataky ◽  
Edmund F. Jansen
Keyword(s):  
Local Government ◽  
New England ◽  
Local Governments ◽  
Tax Revenue ◽  
Forest Land ◽  
The Cost ◽  
Over Time

Recreational home development has been and is likely to continue to be a major concern of many local governments in New England and elsewhere. Recreational homes are defined here as homes that are not the owner's primary residence and are used for vacation, leisure, or recreation. It is generally agreed that this type of development is initially beneficial to local government finances. While more town services may be required, the cost is usually outweighed by the added tax revenue. It is believed, however, that over time recreational homes may be converted to primary homes, which could lead to cost increases without proportional increases in revenue (Am. Soc. of Planning Officials, Clark, Payne). Also, from a wider perspective, the loss of agricultural and forest land to this use may not be desirable.

scholarly journals Research on the Evolution of Collusion between Government and Civil Construction Enterprises in Environmental Regulation

2021 ◽  
Vol 248 ◽  
pp. 02053
Author(s):  
Cao Yingying
Keyword(s):  
Local Government ◽  
Environmental Regulation ◽  
Optimal Strategy ◽  
Local Governments ◽  
Evolutionary Game ◽  
Regional Migration ◽  
Construction Enterprises ◽  
Emission Behavior ◽  
The Cost ◽  
The Way

Polluting civil construction enterprises usually use the way of "voting with their feet" to exert influence on the efforts of local government's environmental regulation, promote the formation of collusion between government and enterprises, and make the local government relax the supervision on the emission behavior of civil construction enterprises. Based on the Tibert model, this paper uses the evolutionary game method to study the collusion between government and enterprises in the cross regional migration of civil construction enterprises and its prevention. The results show that: when the civil construction enterprises comply with the production, the local government's optimal strategy is non collusion strategy; similarly, when the local government is not willing to collude, the non-collusion choice of civil construction enterprises will get higher benefits than collusion. In addition, the cost of civil construction enterprises transferring between different regions, the loss caused by the collusion between civil construction enterprises and local governments, and the probability of local government violations being found can effectively prevent the collusion between local governments and civil construction enterprises.

scholarly journals The Administrative Costs of Local Government Property-Based User Charges and Their Regressivity

2014 ◽  
Vol 9 (4) ◽  
Author(s):  
Helena Blažić ◽  
Sandra Stašić ◽  
Saša Drezgić
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Small Scale ◽  
User Charges ◽  
Administrative Costs ◽  
The Cost ◽  
Collection Costs

The paper measures the administrative costs (assessment and collection costs) of immovable property user charges in local governments in Croatia. This study represents a small scale survey comprising mostly small local governments. First, we establish their costs structure and then we compare the cost-revenue ratio with their size. As expected, the administrative costs of the analyzed user charges turned out to be regressive in regards to the size of local governments. The results imply that substitution of those different charges would be beneficial for local government budgets. In order to mitigate the problem we propose several alternatives: one general tax/charge; amalgamation of the smallest local governments or referring to assessment and collection of user charges in small local governments to the larger/mutual unit.

Municipalities and Regions

2020 ◽  
pp. 140-159
Author(s):  
Kurt Houlberg ◽  
Niels Ejersbo
Keyword(s):  
Local Government ◽  
Social Services ◽  
Local Governments ◽  
Central Government ◽  
Economic Activities ◽  
Fiscal Autonomy ◽  
Wide Range ◽  
Major Reform ◽  
High Level ◽  
High Degree

Denmark is a highly decentralized unitary state with a three-tier administrative system consisting of central government, 5 regions, and 98 municipalities. Danish municipalities are some of the largest compared to the rest of Europe. They are multi-purpose entities responsible for a wide range of technical and social services and have for decades been entitled with a high level of fiscal autonomy. A major reform of the local government system in 2007 followed by a strengthened national spending regime influenced the decentralization framework and autonomy of local governments in Denmark. While the Danish local government system continues to be among the most decentralized local government systems in Western democracies and has demonstrated a high degree of adaptability to changing conditions and externalities, it also faces a number of challenges in order to maintain the delicate balance between being local self-government and implementing agency of the state. These challenges include issues like coordination and capacity for handling complex decentralized tasks, pressure on the institutional framework for coordination of the local government’s economic activities with overall national policies, and an increasing politicization of the equalization scheme.

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