Table of Content

15 August 2020, Volume 0 Issue 8

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Theoretical Economics

“Punish-Style”Incentives: An Analysis of the Burden of Enterprises' Employment Guarantee for the Disabled and the Effect

PANG Feng-xi, Niu Li

2020, 0(8):  3-12. 

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The system of employment guarantee for the disabled is a punishment-based incentive mechanism to encourage enterprises to actively arrange job placement for the disabled persons. The original purpose of the policy is to promote the employment of persons with disabilities, to improve the living conditions of them, and to promote enterprises to fulfill their social responsibilities. As for the operation effect of this system, the results of the simulation analysis based on the financial data of A-share listed companies and the corporate field research show that the employment promotion effect of the system of the employment guarantee for the disabled is not significant. On the contrary, it increases the sense of burden of enterprises to a certain extent, and objectively leads enterprises to obtain disability certificates rather than really arrange jobs for the disabled people. Therefore, faced with the current background of coronavirus epidemic sweeping the globe, further intensified economic downturn pressure, and the difficult reality of the enterprise, when giving comprehensive considerations to the practical needs of promoting the employment of disabled people, implementing the policy of reducing taxes and fees, consolidating and expanding the effectiveness of tax and fee reduction, and enhancing the survival ability of enterprises, it is necessary to further promote the reform in strengthening the responsibilities of the public sector, appropriately reducing the standard of collection of employment guarantee for the disabled, revising and perfecting the management methods for the collection and use of employment guarantee for the disabled, and so on.

Retirement Shock and Urban Household Consumption: An Empirical Study Based on the Breakpoint Regression Design

ZHENG Chao, WANG Xin-jun

2020, 0(8):  15-27. 

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Based on the data of China Health and Pension Tracking Survey and the breakpoint regression design, this paper conducts a study of the impact of retirement shock on household consumption in China. The results show that retirement can significantly reduce household non-durable goods consumption by 31.2%. After removing work-related consumption, home food consumption and expenditures on leisure, culture, education and entertainment, the other non-durable goods consumption has not decreased significantly. The retirement shock leads to a significant change on the household consumption structure. It makes a significant increase in health care spending, and a significant increase in the proportion of non-basic consumption, which helps to optimize the consumption structure. The results of further research indicate that retirement shock has significant heterogeneous effects on households with different levels of consumption and different consumption structures. The impact of retirement shock on the families at the left end of the distribution of health care consumption and the families at the right end of the distribution of non-basic consumption is even more significant. Therefore, it is recommended to formulate a more robust social security system, promote the upgrading of the consumption structure of the elderly, and meet the multi-level material and cultural consumption needs of the elderly.

Public Economics & Administration

Under the Halo: Can Tax Reputation Improve Corporate Tax Compliance

LI Jian-jun, FAN Yuan-yuan

2020, 0(8):  28-40. 

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Higher reputation is often regarded as an intangible asset of an enterprise, which can bring benefits to enterprises with higher reputation and also external pressure to them. Based on the differences-in-differences model, this paper takes the disclosure of the tax credit rating in 2015 as a natural experiment to examine the impact of the“good tax reputation”under the halo of A-level taxpayers on corporate tax compliance. The empirical results show that the disclosure of tax credit rating can significantly improve the tax compliance of the enterprises with A-level tax credit, and this effect is more significant for enterprises with higher nominal tax rates, or located at areas with lower tax collection and management power or at areas with lower tax ethical levels. The results of further research show that, on one hand, higher tax reputation can help enterprises to alleviate financing constraints by bringing practical economic benefits to them, thereby encouraging the enterprises to comply with tax laws; on the other hand, the higher tax reputation also forces enterprises to comply with tax laws by bringing external pressure on them. Therefore, in order to advance the construction of “Credit China”and promote the corporate tax compliance, it is suggested to further raise the legislation level for tax-paying credit, strengthen the scientificity and guidance of the evaluation system of tax-paying credit management, extend the scope and strength of the appliance of the tax credit evaluation results, and create fine tax environment for business through simplifying administrative procedures and delegating powers to lower levels.

Can the Reform of Centralized Procurement Improve Pharmaceutical Quality in China

SHI Wu-nan, YANG Xiu-yun

2020, 0(8):  41-53. 

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To improve the centralized procurement system for medicines is an important task of the reform of medical-sanitary system. In recent years, China's centralized drug procurement is gradually turning from the provincial government-dominated into that of national organized. Whether the reform can take advantages of the national overall planning and improve drug quality is worthy of an in-depth analysis. By employing a game model, this study explores the problem of the pricing of centralized procurement and corporate quality decision-making, analyzes the Subgame Perfect Nash Equilibrium of different provinces and its influencing factors, and compares the different impacts on drug quality of the centralized procurement at the national level and at the provincial level. The results show that the provincial governments only optimize their own total welfares. The smaller the economic scale, the higher the sensitivity level of the consumers to the drug prices, and the lower the pricing will be. At the national level, because the positive externality of innovative input for drug R&D can be fully internalized, so regardless of changes in the influencing factors, the quality of drugs chosen by the enterprises in the national procurement is always superior to that in the provincial procurement. Therefore, to carry out comprehensive national centralized drug procurement can help China to realize the transformation from a“Big Country of Generic Drugs”to a“Strong Country of Generic Drugs”.

Modern Finance

Transformation of Monetary Policy Regulation in the Process of Interest Rate Liberalization

LI Cheng, WANG Dong-yang

2020, 0(8):  54-65. 

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Based on the systematic combing of the monetary policy regulation transformation in the process of interest rate liberalization, this paper takes the process of China's interest rate deregulation as a natural experiment and makes use of the micro-data of 1044 listed companies in the period of 2005-2018 to conduct a phased empirical test. The findings show that the monetary policy regulation presented obvious characteristics of benchmark interest rate regulation before the deregulation of the loan interest rate, while after the deregulation of the loan interest rate, it presents the transformation characteristics of paralleled benchmark interest rate regulation and market interest rate regulation, and after the deregulation of deposit interest rate it presents the transformation characteristics of paralleled monetary quantitative regulation and market interest rate regulation. Taking China's special economic and financial environment into consideration, the transformation of monetary policy regulation in the process of interest rate liberalization should be carried out along the two-way reform ideas of quantitative adjustment regulation and price adjustment perfection. The quantity-based monetary policy should pay full attention to the adjustment from the traditional demand management tool to the structural adjustment tool; the price-based monetary policy should focus on improving the quotation of LPR and cultivating the formation and transmission mechanism of market interest rate, so as to maintain financial stability and stable economic growth.

Has the Capital Market Opening Promoted Corporate Innovation? Empirical Evidences Based on the Trading System of Shanghai-Hong Kong Stock Connect

LUO Hong, CHEN Xiao-yun

2020, 0(8):  66-77. 

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Can capital market opening to the outside world promote higher quality development of the real economy? This has always been an issue focused both by the government sector and the academic world. By making use of the quasi-natural experiment of the implementation of“Shanghai-Hong Kong Stock Connect”trading system and from the perspective of corporate innovation, this paper examines the impact of capital market opening on the development of real economy. The results show that the implementation of the trading system of Shanghai-Hong Kong Stock Connect has improved the level of corporate innovation, and this conclusion is valid after a series of robustness tests. The results of the analysis of the affecting mechanism show that the implementation of the trading system of Shanghai-Hong Kong Stock Connect can benefit enterprises through the three channels, i.e., optimizing the corporate information environment, improving their governance levels and improving their risk bearing levels, thus their innovation level will be improved. In addition, in the context of higher efficiency of financial contracts execution and more intensified product market competition, the implementation of the trading system of Shanghai-Hong Kong Stock Connect has a more significant promotion effect on corporate innovation. Therefore, China should continue to promote the opening up of the capital market, deepen and improve the connectivity mechanism, strengthen the guidance and cultivation of local investors and information intermediaries, and actively guard against the risks related to the opening up of the capital market, so as to bring more innovative vitality to the real economy.

Business Administration

A Study on the Formation Mechanism of Job Crafting from the Perspective of Self-Leadership Theory

ZHAN Xiao-jun, ZHU Yang-hao

2020, 0(8):  78-88. 

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From the perspective of self-leadership theory, this paper explores the relationship between coaching leadership and job crafting behavior of employees and the related intervening mechanism and boundary conditions. Through an analysis of the 365 pieces of data from employees at three stages, it is found that there is a significant positive correlation between coaching leadership and job crafting, self-reward and self-punishment play a mediating role in the relationship. The harmonious passion can positively adjust the relationship between the self-reward and self-punishment with job crafting, and the coaching leadership has an indirect effect in employee's job crafting through self-reward.

A Study of the Impact of CEO Humble Leadership on Organizational Ambidexterity: The Mediating Role of Inclusive Climate

ZHANG Gao-qi, SUN Xiu-li, ZHAO Shu-ming

2020, 0(8):  89-100. 

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Humble leadership behavior is one of the hot research topics in recent years, but researches on the impact of humble leadership on the overall organizational results at the enterprise level is insufficient. Based on the social information processing theory, this study explores the influence of CEO humble leadership behavior on organizational ambidexterity and the mediating role of inclusive climate between the relationship of the two. An analysis is conducted based on the data of a number of senior managers, department leaders and employees from 115 enterprises, the findings show that CEO humble leadership behavior has a positive impact on the organizational ambidexterity, that inclusive climate plays a mediation role in it, and that employees' perceived organizational support can positively moderate the active influence of CEO humble leadership behavior on the inclusive climate and the mediating role of inclusive climate.

Industry & Trade

Estimation of the Environmental Friendly Global Value Chain Position for China and USA Manufacturing Industries: Based on World Input-Output Tables and Their Environmental Accounts

SANG Dan-dan, WANG Yuan-yue, DING Li-li

2020, 0(8):  101-113. 

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By making use of the world input-output tables and their environmental accounts, this paper proposes the calculation method of the position index of environmental friendly global value chain (GVC). On the basis of carbon productivity and the position index of GVC, it defines the added value of embodied carbon per unit in exports, the indirect added value of embodied carbon per unit in exports and the foreign added value of foreign embodied carbon per unit in exports. Taking the manufacturing industries in China and USA as an example, this paper conducts a comparative analysis of the GVC position index and the environmental friendly GVC position index from the four levels: high-tech manufacturing industry, middle high-tech manufacturing industry, lower middle-tech manufacturing industry and low-tech manufacturing industry. The results show that the industrial development level of China's high-tech manufacturing industry is far from that of the USA, while the difference between the environmental friendly production levels of high-tech manufacturing industries both in China and in the USA is relatively small. The development of China's middle high-tech manufacturing industry, lower middle-tech manufacturing industry and low-tech manufacturing industry depends mostly on carbon emissions, and is mostly at the expense of the environment; besides, the levels of environmental friendly production are weaker. However, the production level of a small number of low-tech manufacturing industries in China, such as wood and wood products (excluding furniture), straw and knitting products, printing and duplication of recorded media, are more environmentally friendly than that in the USA since 2008.

Corporate Export, Competitive Effect and Independent Technological Innovation

WU Zhao-yang, CHEN Ya

2020, 0(8):  114-127. 

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By combining the patent application database of Chinese enterprises and the database of Chinese industrial enterprises from year 2000 to 2011, this paper takes the invention patents, utility model patents and design patents at the enterprise level as the agency indicators of independent technological innovation, and it employs the propensity-score matching and difference-in-difference methods to study whether the export of enterprises leads to innovation, then it also measures the different impacts of this effect on the quantity and quality of independent technological innovation. The results show that, as a whole, exports can lead to the improvement of the quantity of independent technological innovation and the decrease of the quality; structurally, the quality of design patents of high-tech enterprises, foreign-funded enterprises, state-owned enterprises and private enterprises is improved due to their exports, while the quality of patents of other kinds in other cases is reduced due to their exports, at the same time, the quantity of patents is improved by their exports. The results of further mechanism test show that the impact of export on independent technological innovation is realized through competition effect. The aggravation of export market competition and the imperfection of patent support policy lead to the increase of patent quantity and the decrease of quality. Therefore, we should not only encourage exports, take advantage of the positive side of competition, force the enterprises to carry out innovation, and increase the quantity of innovation, but also improve China's patent examination and approval system and the supporting policies to alleviate the negative effects of competition and improve the quality of innovation.

Modern Accounting

Does M&A Goodwill Affect Audit Fees

JIANG Yao-ming, YANG Li-juan

2020, 0(8):  128-138. 

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At the present capital market, mergers and acquisitions are constantly emerging, the potential devaluation risks due to over estimation of M&A goodwill have not only brought about tremendous shakes in the capital market, but also affected the audit risks of auditors and the auditing fee on M&A enterprises. By making use of the data of Chinese A-share listed firms from 2007 to 2017, this paper investigates the influence of goodwill on auditing fees. It is found that there is a significant positive correlation between the M&A goodwill and auditing fees of the listed companies, in which the action mechanism is that M&A goodwill has increased information asymmetry and agency costs of the listed companies, and in turn increased auditing fees. The results of further study indicate that the fine internal control and external institutional environment can ease the positive correlation between M&A goodwill and auditing fees.

A Study of the Impact of Environmental Information Disclosure on R&D Input-Output Efficiency

XU Hui, ZHOU Xiao-hua, ZHOU Bing

2020, 0(8):  139-149. 

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From the perspective of resource dependence theory, this paper empirically analyzes the influence and the mechanism of corporate environmental information disclosure on R&D input-output efficiency by using the data of listed companies with heavy pollution from 2009 to 2018. The findings show that enterprise environmental information disclosure has a significant promoting effect on R&D input-output efficiency. Compared with monetary environmental information disclosure, non-monetary environmental information disclosure plays an even more significant role in promoting R&D input-output efficiency. The results of further study show that the intermediate mechanism of the impact of environmental information disclosure on R&D input-output efficiency is that environmental information disclosure can relieve the financing constrains and the agency problem. The interaction of environmental information disclosure and R&D input-output can keep the continuity of R&D input and improve the conversion rate of R&D input.