# Professor Jennifer Carpenter's research on China's stock market is cited

1 Faculty News June 18, 2015 ![Citywire logo](/sites/default/files/styles/246w/public/assets/images/con_030748.jpg?itok=IFcrIB6m)>

Excerpt from [Citywire](http://citywire.co.uk/wealth-manager/news/can-smart-beta-strategies-work-with-china-a-shares/a821658) -- "[Jennifer Carpenter](http://www.stern.nyu.edu/faculty/bio/jennifer-carpenter) and her co-researchers at NYU Stern School of Business suggested last year \[the diference between China's A share and other markets\] might be due to the isolation of the domestic market, effectively bidding up the cost of funding, this would have a larger effect the greater the ratio of equity capital to capital expenditure. '\[This\] amounts to an inflated cost of equity capital, constraining the investment of China’s smaller, more profitable enterprises,' they said."

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