Credit Risk Analysis Using Quantum Computers Egger, Daniel J.; Garcia Gutierrez, Ricardo; Mestre, Jordi Cahue ...
IEEE transactions on computers,
2021-Dec.-1, 2021-12-1, Volume:
70, Issue:
12
Journal Article
Peer reviewed
Open access
We present and analyze a quantum algorithm to estimate credit risk more efficiently than Monte Carlo simulations can do on classical computers. More precisely, we estimate the economic capital ...requirement, i.e. the difference between the Value at Risk and the expected value of a given loss distribution. The economic capital requirement is an important risk metric because it summarizes the amount of capital required to remain solvent at a given confidence level. We implement this problem for a realistic loss distribution and analyze its scaling to a realistic problem size. In particular, we provide estimates of the total number of required qubits, the expected circuit depth, and how this translates into an expected runtime under reasonable assumptions on future fault-tolerant quantum hardware.
•Using the CFPS database, this study investigates the cognitive ability of migrant children.•Family economic capital greatly enhances the Chinese and Math performance of migrant children.•Family ...education expenditure and parental involvement mediate the influence mechanism.•Regional education level has a significantly positive moderating effect on family education expenditure.
The scale of migrant populations and the prevalence of family-based migration in China have sparked concerns about migrant children. After moving to the city, compared to loacl children, migrant children are at a disadvantage in terms of access to external educational resources and internal family education. It is thus of great academic and practical importance to explore the factors affecting the cognitive abilities of migrant children. Using the CFPS database in 2014, 2016, and 2018, this study investigates the effects and mechanisms of family economic capital on the cognitive ability of migrant children. The findings show that family economic capital greatly enhances the Chinese and Math performance of migrant children and that there is heterogeneity in the effect of family economic capital on the cognitive ability of migrant children attending key schools and non-key schools. In addition, the mediating effect model shows that family economic capital mainly influences the Chinese and Math scores of migrant children through mediating variables such as family education expenditure and parental involvement. At the same time, the results of the hierarchical linear model show that the regional education level has a significantly positive moderating effect on family education expenditure, while the moderating effect on parental involvement is not significant. Therefore, assisting migrant families to increase their financial resources, family educational expenditure, and family communication can contribute to their children's human capital development.
The social scientific analysis of social class is attracting renewed interest given the accentuation of economic and social inequalities throughout the world. The most widely validated measure of ...social class, the Nuffield class schema, developed in the 1970s, was codified in the UK's National Statistics Socio-Economic Classification (NS-SEC) and places people in one of seven main classes according to their occupation and employment status. This principally distinguishes between people working in routine or semi-routine occupations employed on a 'labour contract' on the one hand, and those working in professional or managerial occupations employed on a 'service contract' on the other. However, this occupationally based class schema does not effectively capture the role of social and cultural processes in generating class divisions. We analyse the largest survey of social class ever conducted in the UK, the BBC's 2011 Great British Class Survey, with 161,400 web respondents, as well as a nationally representative sample survey, which includes unusually detailed questions asked on social, cultural and economic capital. Using latent class analysis on these variables, we derive seven classes. We demonstrate the existence of an 'elite', whose wealth separates them from an established middle class, as well as a class of technical experts and a class of 'new affluent' workers. We also show that at the lower levels of the class structure, alongside an ageing traditional working class, there is a 'precariat' characterised by very low levels of capital, and a group of emergent service workers. We think that this new seven class model recognises both social polarisation in British society and class fragmentation in its middle layers, and will attract enormous interest from a wide social scientific community in offering an up-to-date multi-dimensional model of social class.
Why and how do resources provide sources of competitive advantage? This study sheds new light on this central question of resource-based theory by allowing a single resource—entrepreneurial-firm ...patents—to play distinctive roles in different competitive arenas. As rights to exclude others, patents serve a well-known role as legal safeguards in product markets. As quality signals, patents also could improve access and the terms of trade in factor input markets. Based on the financing activities of 370 venture-backed semiconductor startups, we provide new evidence that patents confer dual advantages in strategic factor markets, improved access and terms of trade, above and beyond their added product-market protection. The study has important implications for empirical tests of resource-based theory and the measurement of resource value.
This article aims to explore the dynamic relationship between Fintech (financial technology) and EC(the economic capital of commercial banks market risk) changes for a sample of 16 listed commercial ...banks in China. We estimate a balance panel dynamic system Generalized Method of Moment (GMM) approach for the period of January 2011 to September 2019.The article finds that during the sample period, Fintech has reduced the cost of information on both sides of the transaction, increased the transparency of market information, and reduced the EC. It also finds Fintech can provide a large amount of data for commercial banks to conduct market analysis, which makes the procyclicality of commercial banks less than before. Further tests reveal commercial banks have profit-driven preferences, while banks with strong profitability and high asset scale have higher risk tolerance. The impact of Fintech on the EC of different asset sizes commercial banks market risk is different.
Entrepreneurial ecosystems (EEs) are identified as regions with intensive and coordinated entrepreneurship practices. However, there is less focus on the longitudinal perspective to track how an EE ...has taken form. In this research, to understand the emergence of an EE, we developed a two-phase model with Bourdieu's approach and identified the contents and interaction of entrepreneurship capitals, habitus, and practices in each phase. By analysing 34 interviews of technology entrepreneurs from Shenzhen, China, we found that in the heteronomous phase, pursuing economic capital and the habitus of making quick profit results in entrepreneurship practices of copycat business; and in the autonomous phase, valuing cultural capital and the habitus of altruism result in entrepreneurship practices of innovation activity. This study offers the following implications for practitioners. First, public sectors should invest in industries with high technology affordance that can create entrepreneurship opportunities. Second, social events can transform entrepreneurship practices from distributed individual level to coordinated social construction.
Corporate social performance (CSP) consists of actions in different domains that vary in the information they provide stakeholders, and hence, in their effect on firm performance. To demonstrate ...this, the authors examine the impact of CSP on firm performance in two areas—the product and the environment, referred to as product social performance (PSP) and environmental social performance (ESP), respectively. PSP has a stronger positive impact on firm performance compared to ESP. The findings using disaggregated measures of PSP and ESP indicate negativity bias in that PSP weakness has a stronger negative impact on firm performance compared to PSP strength.
The Chinese educational system operates on a chain relationship, where primary education acts as a gateway to better secondary education. This, in turn, increases the likelihood of attending a ...reputable high school, ultimately leading to a higher probability of gaining admission to a prestigious university. Consequently, primary schools, particularly key schools, represent a significant and influential market at the initial stage of the educational journey. The decision and selection process for a primary school are influenced by three types of capital: cultural capital, economic capital, and social capital. And in order to explore the predominant factors influencing access to a key primary school, this quantitative study has been conducted through questionnaires aimed at 1,082 Chinese students hailing from 21 universities across China. The findings of this study indicate that social capital, cultural capital and economic capital play pivotal roles in predicting access to a key primary school. In this sense, influential variables such as extracurricular activities, purchase housing, mother's education and social relationships have been identified. But it is important to note that both parents do not exert equal influence in this regard, with the mother emerging as the primary determining factor. In essence, the mother wields more influence than the father when it comes to selecting a primary school for their children.
This study examines liquidity and cost of capital effects around voluntary and mandatory IAS/IFRS adoptions. In contrast to prior work, we focus on the firm-level heterogeneity in the economic ...consequences, recognizing that firms have considerable discretion in how they implement the new standards. Some firms may make very few changes and adopt IAS/IFRS more in name, while for others the change in standards could be part of a strategy to increase their commitment to transparency. To test these predictions, we classify firms into "label" and "serious" adopters using firm-level changes in reporting incentives, actual reporting behavior, and the external reporting environment around the switch to IAS/IFRS. We analyze whether capital-market effects are different across "serious" and "label" firms. While on average liquidity and cost of capital often do not change around voluntary IAS/IFRS adoptions, we find considerable heterogeneity: "Serious" adoptions are associated with an increase in liquidity and a decline in cost of capital, whereas "label" adoptions are not. We obtain similar results when classifying firms around mandatory IFRS adoption. Our findings imply that we have to exercise caution when interpreting capital-market effects around IAS/IFRS adoption as they also reflect changes in reporting incentives or in firms' broader reporting strategies, and not just the standards.
This study aims at contributing to literature by investigating characteristics of Generation Z's social media uses and gratifications and the moderation effect of economic capital. Specifically, we ...employed online survey as the main research method to examine the connections between the young generation cohort's online motivations, social media practices, and economic capital. A total of 221 Chinese Generation Z social media users were recruited in the survey. Results indicated that (1) Generation Zs have different social media engagements depending on whether they were connected for daily routine alternatives or socialization; (2) the young cohorts from upper-mid-income families demonstrated a more instrumental-rational habitus to use social media more frequently as a communicative tool than those from low-income families; and (3) motivations and family income interacted to influence Generation Z's social media practices (e.g., social capital accumulating and exchanging and self-expression). Findings here provide empirical reference to deepened understandings of the interactions between social media and digital generations, and their connections with digital social inequalities.
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