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15 January 2022, Volume 0 Issue 1 Previous Issue    Next Issue

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The Impact of Structural Shocks on China's Economy: Also on the Economic Impact of the COVID-19 Epidemic WU Liyuan, LIU Yanzhao 2022, 0(1): 3-17.  Abstract ( )   PDF (281KB) ( )   The impact of infectious diseases as a short-term and severe structural shock on China's economy and policy choices has attracted widespread attention because of the global outbreak of COVID-19. This paper is a study based on the dynamic stochastic general equilibrium model that includes the upstream and downstream production structures, the different types of enterprises and the heterogeneous financial frictions. The findings show that the impact of the epidemic is a comprehensive impact on both productivity and demand at the same time, this feature is very important for evaluating its economic effect, and it can explain the stylized fact that the extent of China's consumption has declined more than that of production investment and that the recovery is rather slower since the outbreak of the epidemic. The effect of the structural tax reduction policy on economic stability is significantly better than that of the loose monetary policy, and the welfare loss is smaller, but the combination of the two policies can bring better welfare results. This is because monetary expansion stabilizes the aggregate demand while worsening the mismatch of credit resources at the same time, however, the structural tax reduction can partially correct the credit mismatch, and the use of the policy combinations can give full play to the advantages of the two policies. References | Related Articles | Metrics

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Research of the Compiling of the Land Resource Balance Sheet Based on the Ecological Footprint Approach WANG Junjie 2022, 0(1): 18-32.  Abstract ( )   PDF (276KB) ( )   Compiling a natural resource balance sheet (NRBS) is a prerequisite for the implementation of the off-service audit of the natural resource assets and the accountability system for ecological and environmental damages before the leading officials leave their offices; it also helps to achieve the goal of carbon neutrality. The study of the NRBS still faces some theoretical problems, and it is still a huge challenge to compile a set of reproducible and highly operable NRBS. Reconstructing the theoretical framework of NRBS with reference to ecological footprint ideas can solve some theoretical problems and make the preparations for the plan more maneuverable. The trial compilation results based on the data of the whole province of Jiangxi and the three cities of Nanchang, Ji'an and Ganzhou show that the total equity value of land resources in Jiangxi Province in 2018 is approximately 118 trillion yuan. In the total value composition, forest, arable land, wetland, and grassland account for about 75%, 9%, 8%, and 8% respectively. In 2018, the value of land liabilities in Jiangxi Province was approximately 3.46 trillion yuan. In 2018, the value of land resource equity in Ganzhou, Ji'an, and Nanchang were 26.77, 18.21, and 4.29 trillion yuan respectively. In 2018, the value of land resources in Jiangxi Province was about 21 times the value of the physical capital stock and about 54 times the gross regional product. This result is more credible than that of other existing studies, and it also proves that“clear waters and green mountains are as good as mountains of gold and silver”. References | Related Articles | Metrics

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The Impact of Development of Digital Economy on Local Fiscal Sustainability in China DENG Da, PAN Guangxi, LIN Xiaole 2022, 0(1): 33-50.  Abstract ( )   PDF (316KB) ( )   The development of digital economy and the local fiscal sustainability are two important issues in the face of China's macroeconomic field. It is of great practical significance to study the impact of the development of digital economy on local fiscal sustainability. Based on the provincial panel data from 2011 to 2018, this paper first measures China's local fiscal sustainability index, and then uses the fixed effect model to empirically study the impact of development of digital economy on local fiscal sustainability. The results show that, in the whole country, there is a significant and stable positive correlation between the development of digital economy and the local fiscal sustainability. The results of a mediating effect test show that the development of digital economy can affect local fiscal sustainability through fiscal revenue. Therefore, it is necessary to further optimize and promote the market mechanism and the policy support system for the development of digital economy, and to accelerate the digital industrialization and industrial digitization to promote the development of digital economy. It is also necessary to promote the reform of the financial and tax management system, strengthen the application of digital frontier technology in financial and tax management, and implement digital comprehensive budget performance management system. In addition, it is necessary to do a good job on“increasing income and reducing expenditure,”while the performance supervision and management of financial expenditure funds should be strengthened. References | Related Articles | Metrics

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Population Aggregation and Financial Fragility: An Empirical Study Based on Listed Banks in China DENG Kebin, KUANG Pengcheng 2022, 0(1): 51-65.  Abstract ( )   PDF (283KB) ( )   Population aggregation can exert a certain degree of potential external shock to the stability of finance, which may lead to exposure of the fragility in the financial system. By selecting the micro-data of China's listed banks and the city population density data from 2000 to 2019, this paper conducts an empirical test on the affecting direction of population aggregation on financial fragility and its action mechanism. The findings show that population aggregation can significantly lead to banks' default risks and the rising of systemic risks, i.e., population aggregation has aggravated the financial fragility. While during the banking panic period and in the bank group with lower information asymmetry, the effect of population aggregation on banking risks is even stronger. This reveals that population aggregation can not only result in the increase of bank risks by intensifying financial panic, but also reducing bank risks by alleviating information asymmetry. Further analysis reveals that the population aggregation driven by the reform of the household registration system in 2014 has significantly raised the leverage ratio and loan-to-deposit ratio of regional commercial banks, which further contributed to the increasing of bank risks. This proves that the negative impact of population aggregation on financial stability exists solidly. Therefore, it is necessary to pay attention to the regional coordinated development and avoid excessive population aggregation; to boost public confidence and to prevent and control financial risks in the areas with dense population; and to focus on strengthening the supervision of the banking industry and to safeguard the safety and stability of the whole financial system. References | Related Articles | Metrics

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The Industrial Effect of the Digital Economy: A Theoretical Analysis Based on Data Factorization ZHOU Zhihan, YANG Xi 2022, 0(1): 66-80.  Abstract ( )   PDF (461KB) ( )   By constructing a heterogenous enterprise dynamic equilibrium model and combining theoretical research with quantitative analysis, this paper explores the impact of digital economy on industrial productivity, intra-industry resource integration and social welfare. The findings show that after introducing digital economy, the export critical productivity increases, the changes of the production critical productivity and industrial average productivity are determined by the corresponding critical value of the productivity improvement index, while the degree of the intra-industry production competition is relieved and the degree of the intra-industry export competition is intensified. Through the two paths of changing the factor marginal output and the industrial entry cost, digital economy can exert its effects on the industrial economy at the same time. It has dual effects on the intra-industry resource integration and the social welfare, which means that there exist corresponding critical values of data versus price. On both sides of the critical value, the effects brought over by the digital economy is just the opposite. The value and the changing trend of this relative price critical value depend on such industrial characteristics as the intensity of data factor, the degree of product differentiation, and the industrial trade cost. This research not only builds a theoretical analysis paradigm for industrial digitalization and lays a theoretical foundation for future research on the industrial effects of the digital economy, but also provides a theoretical basis for China to steadily promote the development of the digital economy. The government should implement the precise industrial guidance policies in accordance with the various industrial characteristics and promote the transformation and upgrading of the industrial digitalization according to local conditions. References | Related Articles | Metrics

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Has Bank Partnership Aggravated the Adverse Effects of Liquidity Shocks on Banks? An Analysis Based on the Data of China's Syndicated Loans HUANG Feiming, YAN Han, WEI Lin 2022, 0(1): 81-94.  Abstract ( )   PDF (281KB) ( )   Based on the data of China's syndicated loans, this paper empirically examines the impact of the bank partnership on the bank financing cost, liquidity creation level and credit supply in the case of liquidity shock. The results show that banks with more partnerships will prefer the liquidity management strategy of external“purchased liquidity”rather than internal“stored liquidity”. In the face of liquidity shocks, banks that have established more partnerships through syndicated loans will face higher financing liquidity risks, which will weaken their liquidity creative ability and reduce the credit supply. The business partnership of banks will encourage banks to relax their internal liquidity management, and eventually bring adverse consequences in the face of liquidity shocks. Therefore, the commercial banks should hold adequate high-quality assets with high liquidity, never relying on the fund of other banks. The regulatory authorities also need to strengthen the supervision of bank liquidity risks, and to avoid the liquidity crisis caused by excessive reliance on the short-term interbank funds of partner banks. References | Related Articles | Metrics

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Participation in Poverty Governance and Corporate Risk Level YUE Jiabin, YE Yingzi, SUN Yiwen 2022, 0(1): 95-109.  Abstract ( )   PDF (256KB) ( )   Government and market are the essential entities in constructing the national governance system and achieving the modernization of governance capacity. To straighten out the relationship between the two can better play the role of governance, which has become a research topic attracting the scholars' attention. Taking the implementation of the targeted poverty alleviation policy as the research background, this paper conducts an empirical test of the impact of the listed companies' participation in the targeted poverty alleviation on their corporate risk levels. The findings show that the listed companies as market governance units participating in targeted poverty alleviation led by the government can significantly reduce their risk levels and that enhancing their corporate reputation is an important channel leading to the above-mentioned effects. The results of further study suggest that this role of risk restraining is more significant in the enterprises of state-owned, with less financing constraints or with poor internal quality control. The above results provide empirical evidences for the effectiveness of the cooperative governance mode that the government encourages companies to participate in, suggesting that in the implementation of targeted poverty alleviation, the interconnected governance between the successful government and the efficient market not only conforms to the self-interests of enterprises, but also improves the efficiency of resource allocation for poverty alleviation. Therefore, this study has important enlightenment for the listed companies to summarize their experience of participating in targeted poverty alleviation and for the social powers to participate in the rural revitalization and other national strategies. References | Related Articles | Metrics

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Political Verification or Substantive Verification: The Impact of Industrial Policy on the Administrative Verification of the M&A Committee YUAN Yehu, TANG Sheng 2022, 0(1): 110-123.  Abstract ( )   PDF (260KB) ( )   The institutional arrangement for the administrative verification of the mergers and acquisitions is an important starting point for the optimization of the real economic structure, which can serve the national economic strategic layout, it is also related to the normal functioning of mergers and acquisitions and the healthy and market-oriented development of the capital market. Taking the industrial policy as the entry point and selecting the data of the cases of mergers and acquisitions of A-share listed companies verified by the Mergers and Acquisitions Committee from 2008 to 2018 as samples, this paper studies the essence of the administrative verification of the Mergers and Acquisitions Committee. The results show that when the listed companies supported by industrial policies are the acquirers, the M&A events are more likely to pass the administrative verification of the Mergers and Acquisitions Committee. The findings of further heterogeneous analysis show that the results of remarkably increased probability of M&A events verification of the listed companies supported by the industrial policies are mainly embodied in the samples of listed companies that are private enterprises or from non-western regions or integrated horizontally, which reflects the substantiality of the verification by the Mergers and Acquisitions Committee. However, the social relevance and the grey relevance between the listed companies supported by industrial policies and the Merger and Acquisitions Committee can have adverse effects on the substantive verification of the Mergers and Acquisitions Committee, which may lead to the distortion of the efficiency of market resource allocation in the M&A events. Besides, after the realization of M&A of listed companies supported by industrial policies, the listed company groups can carry out more substantive innovations. References | Related Articles | Metrics

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Data-Based Audit Approach: The Supply-Side Reform of Auditing Driven by Digital Technology FANG Qiaoling, GAO Sifan 2022, 0(1): 124-137.  Abstract ( )   PDF (269KB) ( )   The traditional audit approach restricts the audit supply, which is incompatible with the increasing diversified audit demands of the economic society. Therefore, the supply-side reform of auditing is imperative. Digital technologies have injected strong driving forces into the supply-side reform of auditing, stimulating the transformation and upgrading of the audit approach from the traditional to the data-based. However, we are faced with such challenges as the heavy tasks of the construction of the audit data standard system, the auditors' digital technology ability not fully meeting the demands of the data-based audit approach, the changes of the auditing organizations, and so on. Therefore, we should push forward the construction of the audit data standard system, construct the audit personal training system that fit for the data-based audit approach, improve the scientificity and adaptability of audit organization means, and perfect the ethical norms applicable in data-based auditing. References | Related Articles | Metrics

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Can the Review-Inquiry Letter of Sci-Tech Innovation Board Improve the Level of Information Disclosure on Key Items? JIANG Yaoming, ZHANG Leiyun 2022, 0(1): 138-150.  Abstract ( )   PDF (242KB) ( )   Companies that are to be listed on the Sci-tech Innovation Board have to accept non-administrative punishment supervision of Shanghai Stock Exchange by means of review and inquiries. Therefore, this paper takes 215 Sci-tech Innovation Board companies listed from July 22, 2019 to December 31, 2020 as the research objects and takes the first review and inquiry letter from Shanghai Stock Exchange that they received during the IPO process as research samples to analyze the characteristics of the subject matters of the review and inquire letters by employing the LDA subject analysis tool. It also empirically studies the relationship between the subject characteristics of the review and inquire letters and the improvement of the level of information disclosure on key items. The findings show that the stronger the review and inquiry related to key issues in the process of IPO issuance and listing, the higher the level of information disclosure of key matters in the registration draft of the prospectus of the proposed listed company compared to the declaration draft, and the stronger the improvement of information disclosure level by the review and inquiry on the companies with poorer corporate governance. References | Related Articles | Metrics