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Research on China’s Exchange Online Financial Market: An Exchange Online Financial Capital Asset Pricing Model
Institute of European Studies, Chinese Academy of Social Sciences, Beijing, China
- 1 Institute of European Studies, Chinese Academy of Social Sciences, Beijing, China
American Journal of Industrial and Business Management·Volume 09 (2019)·Pages 1045–1058·Published 4 April 2019·DOI10.4236/ajibm.2019.94072
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Abstract
China, the world’s second largest economy, has become the latest battlefield “fordotcom” companies with online financial exchange businesses booming. While, the traditional CAPM can’t price the online financial capital asset successfully, there is no theory of pricing online capital asset. In this paper we build an exchange online financial capital asset pricing model, which improves the performance of the CAPM in application. In our empirical results, the model ECAPM is more successful in pricing online financial capital asset rather than CAPM. Overall, our findings show some arguments of failure of online financial market in US, but of boom in China.
KeywordsChinaExchange Online FinancialYu’E BaoAsset PricingCAPM
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