j_fprj-2019-0001_tab_006
| Company | Timespan | Beta | |
|---|---|---|---|
| No. 1 | Anhui Grotong Hi-Tech Pipes Industry | 2004-2013 | 0.649 |
| No. 2 | Anhui Water Resources | 2003-2013 | 0.904 |
| No. 3 | Beijing Capital | 2002-2013 | 0.872 |
| No. 4 | China Gezhouba Group | 2002-2013 | 0.748 |
| No. 5 | Chongqing Water Group | 2010-2013 | 0.903 |
| No. 6 | Fujian Zhangzhou Development | 2002-2013 | 0.820 |
| No. 7 | Grandblue Environment | 2002-2013 | 0.606 |
| No. 8 | Guangdong Golden Dragon Development | 2002-2013 | 0.896 |
| No. 9 | Heilongjiang Interchina Water Treatment | 2002-2013 | 0.233 |
| No. 10 | Jiangsu Jiangnan Water | 2011-2013 | 0.543 |
| No. 11 | Jiangxi Hongcheng Waterworks | 2004-2013 | 0.780 |
| No. 12 | Qianjiang Water Resources | 2002-2013 | 0.859 |
| No. 13 | Shanghai Chengtou Holding | 2002-2013 | 0.782 |
| No. 14 | Sichuan Guangan AAA Public | 2004-2013 | 0.792 |
| No. 15 | Sound Environmental Resources | 2002-2013 | 0.634 |
| No. 16 | Tianjin Capital Environmental Protection Group | 2002-2013 | 0.820 |
| No. 17 | Wuhan Sanzhen Industry Holding | 2002-2013 | 0.797 |
| No. 18 | Xinjiang Urban Construction Group | 2003-2013 | 0.894 |
| No. 19 | Zhongshan Public Utilities Group | 2002-2013 | 1.029 |
The effects of competition, pricing, and quality of service announcements on China’s water industry’s systematic risk without the controlling variables
| Regressor | Coefficient | t-value | Adj. R2 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Constant | γ0 | 0.804 | (67.22)** | 0.52 | |||||
| COMP+ | γ1 | 0.011 | (0.88) | ||||||
| COMP- | γ2 | -0.051 | (-3.97)** | ||||||
| PRICE+ | γ3 | -0.057 | (-4.72)** | ||||||
| PRICE- | γ4 | 0.032 | (2.72)** | ||||||
| QUAL+ | γ5 | 0.035 | (4.43)** | ||||||
The overall effect of regulatory announcements on China’s water industry’s systematic risk
| Regressor | Coefficient | t-value | Adj. R2 |
|---|---|---|---|
| Constant | -0.575 | (-15.11)** | 0.61 |
| ANNO | 0.006 | (1.17) |
Descriptive statistics
| Variable | Obs | Mean | Std. Dev. | Min | Max |
|---|---|---|---|---|---|
| Financial leverage ratio | 228 | 0.754 | 0.542 | 0.000 | 2.474 |
| Operating efficiency ratio | 228 | -1.212 | 0.887 | -7.264 | 0.480 |
| Profitability ratio | 228 | 2.438 | 1.398 | 0.000 | 11.068 |
| Liquidity ratio | 228 | -0.425 | 0.854 | -3.467 | 2.366 |
| Firm size | 228 | 5.437 | 2.145 | 0.000 | 9.559 |
The effects of competition, pricing, and quality of service announcements on the systematic risks of individual Chinese water companies
| Regressor | β1 | β2 | β3 | β4 | βs | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| COMP+ | η1 | 0.081 | (0.97) | -0.008 | (-0.39) | -0.015 | (-0.63) | -0.023 | (-1.53) | 0.070 | (2.16)** |
| COMP- | η2 | 0.019 | (0.97) | -0.005 | (-0.14) | 0.037 | (1.04) | 0.041 | (1.43) | - | - |
| PRICE+ | η3 | -0.058 | (-2.43)** | -0.043 | (-1.54) | -0.036 | (-1.65)* | -0.014 | (-0.86) | -0.269 | (-12.86)** |
| PRICE- | η4 | 0.024 | (0.56) | -0.003 | (-0.27) | -0.003 | (-0.12) | -0.007 | (-0.47) | -0.007 | (-0.24) |
| QUAL+ | η5 | 0.013 | (0.45) | 0.010 | (0.80) | -0.009 | (-0.40) | 0.021 | (2.60)** | 0.006 | (0.40) |
| β6 | β7 | β8 | β9 | β10 | |||||||
| COMP+ | η1 | 0.001 | (0.09) | -0.013 | (-0.81) | 0.026 | (1.73)* | 0.071 | (1.13) | 0.001 | (0.03) |
| COMP- | η2 | -0.040 | (-1.67)* | 0.018 | (1.51) | -0.025 | (-0.61) | -0.074 | (-1.35) | - | - |
| PRICE+ | η3 | -0.025 | (-1.93)* | -0.015 | (-0.93) | -0.079 | (-2.61)** | -0.130 | (-1.64) | - | - |
| PRICE- | η4 | -0.001 | (-0.12) | -0.003 | (-0.63) | 0.033 | (1.27) | 0.070 | (1.18) | 0.062 | (3.41)** |
| QUAL+ | η5 | 0.013 | (2.07)** | 0.002 | (0.52) | 0.023 | (1.59) | 0.067 | (1.78)* | -0.026 | (-1.44) |
| β11 | β12 | β13 | β14 | β15 | |||||||
| COMP+ | η1 | 0.016 | (1.24) | 0.003 | (0.14) | 0.005 | (0.41) | 0.034 | (1.04) | -0.012 | (-0.84) |
| COMP- | η2 | -0.036 | (-0.99) | -0.006 | (-0.32) | 0.049 | (1.46) | -0.039 | (-1.45) | 0.016 | (0.90) |
| PRICE+ | η3 | -0.029 | (-2.34)** | -0.039 | (-1.74)* | -0.038 | (-2.18)** | -0.036 | (-2.70)** | 0.006 | (0.47) |
| PRICE- | η4 | -0.005 | (-0.49) | 0.031 | (2.00)** | 0.029 | (3.89)** | -0.026 | (-2.18)** | -0.021 | (-1.68)* |
| QUAL+ | η5 | 0.021 | (1.84)* | 0.005 | (0.51) | -0.005 | (-0.39) | 0.015 | (0.63) | 0.037 | (2.70)** |
| β16 | β17 | β18 | β19 | ||||||||
| COMP+ | η1 | -0.026 | (-1.21) | -0.010 | (-0.90) | -0.022 | (-0.85) | -0.018 | (-0.65) | ||
| COMP- | η2 | -0.007 | (-0.27) | 0.013 | (0.54) | -0.028 | (-0.73) | -0.001 | (-0.03) | ||
| PRICE+ | η3 | 0.003 | (0.09) | -0.026 | (-1.85)* | -0.031 | (-1.93)* | -0.038 | (-1.49) | ||
| PRICE- | η4 | 0.018 | (0.63) | 0.014 | (2.06)** | 0.013 | (0.74) | -0.014 | (-0.59) | ||
| QUAL+ | η5 | 0.003 | (0.15) | 0.013 | (1.75)* | 0.018 | (1.28) | 0.048 | (2.23)** |
j_fprj-2019-0001_tab_007
| Year | COMP+ | COMP- | PRICE+ | PRICE- | QUAL+ | Total |
|---|---|---|---|---|---|---|
| 2002 | 1 | 2 | 3 | - | - | 6 |
| 2003 | - | 1 | 1 | - | - | 2 |
| 2004 | 2 | - | - | - | 2 | |
| 2005 | 2 | ? | ? | 5 | 7 | |
| 2006 | 2 | 1 | 1 | 1 | 3 | 8 |
| 2007 | - | - | 2 | - | - | 2 |
| 2008 | - | 2 | 2 | - | - | 4 |
| 2009 | - | - | 3 | - | 1 | 4 |
| 2010 | 1 | - | 1 | 2 | - | 4 |
| 2011 | 3 | - | 2 | 3 | 8 | |
| 2012 | 1 | - | - | 4 | 5 | |
| 2013 | 1 | - | - | 1 | 2 | 4 |
| Total | 13 | 6 | 13 | 6 | 18 | 56 |
j_fprj-2019-0001_tab_008
| 1. | Announcements that are expected to have a positive effect on competition (COMP+) |
| May 19, 2009 (State Council). Fasten the reform of public utility services; expand the scope of business permits for water and wastewater services. | |
| January 01, 2011 (State Council). Attract private funds by encouraging municipal-owned companies to invest in the water industry directly and indirectly. | |
| 2. | Announcements that are expected to have a negative effect on competition (COMP-) |
| December 10, 2006 (Ministry of Water Resources). Water projects must be supervised and permitted by the Ministry of Water Resources and local water authorities. | |
| April 9, 2008 (Ministry of Water Resources). The supply of water for any projects must be approved and implemented by relevant government bodies. | |
| 3. | Announcements that are expected to have a positive effect on prices (PRICE+) |
| April 19, 2010 (Ministry of Development and Reform Commission). Develop a sustainable pricing mechanism by implementing hierarchical water prices. | |
| August 31, 2011 (State Council). Promote hierarchical water prices; include additional wastewater costs in water tariff. | |
| 4. | Announcements that are expected to have a positive effect on prices (PRICE-) |
| May 28, 2011 (State Council). Set reasonable water prices in the development of water grids in rural areas. | |
| January 7, 2013 (Ministry of Development and Reform Commission and Ministry of Water Resources). Carefully and fully consider local economic development and consumers’ ability to pay when setting water prices. | |
| 5. | Announcements that are expected to have a negative effect on quality (QUAL+) |
| May 28, 2012 (Ministry of Housing, Urban, and Rural Construction). Apply stricter criteria to drinking water quality; drive higher standards; use more advanced technologies in drinking water treatment. | |
| October 2, 2013 (State Council). Apply stricter standards in wastewater management; increase investments in the processing of wastewater. |
The effects of competition, pricing, and quality of service announcements on China’s water industry’s systematic risk after controlling for accounting variables
| Regressor | Coefficient | t-value | Adj. R2 | |
|---|---|---|---|---|
| Constant | γ0 | -0.557 | (-14.61)** | 0.61 |
| COMP+ | γ1 | 0.011 | (0.95) | |
| COMP- | γ2 | -0.025 | (-2.03)** | |
| PRICE+ | γ3 | -0.043 | (-4.12)** | |
| PRICE- | γ4 | 0.012 | (1.15) | |
| QUAL+ | γ5 | 0.020 | (2.88)** |