Table of Content

15 March 2020, Volume 0 Issue 3

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Theoretical Economics

Encouraging both Housing Purchase and Renting, Housing Price Changes and Housing Market Development

LIU Shao-tao, ZHANG Xie-kui

2020, 0(3):  3-15. 

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Starting from the new round of housing market system reform“encouraging both housing purchase and renting”, this paper takes China’s 35 large and medium-sized cities as the research objects and empirically analyses the policy impact of encouraging both housing purchase and renting on the changes of housing prices in the pilot cities based on the panel data from the first quarter of 2016 to the fourth quarter of 2018 by employing the Difference-in-Difference model (DID) and the Difference-in-Difference Propensity Score Matching model (PSM-DID). Then it discusses the impact of the policy on the development of the housing market. The results show that the policy of encouraging both housing purchases and renting has a direct impact on the housing market, which can significantly inhibit the rise in housing prices, but also push up housing rents. Further research finds out that this policy has a more significant degree of inhibiting effect on the prices of new housing and small-area housing than on the prices of second-hand housing and large-area housing.

Population Aging and Consumption Rate of Urban Households: An Empirical Analysis Based on Dynamic Stochastic General Equilibrium Model

WANG Yong

2020, 0(3):  16-25. 

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In addition to directly affecting urban households’ consumption, population aging can also indirectly affect urban households’ consumption through housing price. This paper divides urban households into patient and impatient households based on the heterogeneity expectations of urban households on future changes in housing prices. It adds population aging shock and housing preference shock to the dynamic stochastic general equilibrium model which includes patient and impatient households as well as housing development enterprises, so as to study the impact of population ageing on urban households’ consumption rate through housing price-to-income ratio. The results show that: population aging will increase the consumption rate of patient households, while inhibiting the consumption rate of impatient households; population aging will significantly increase the consumption rate of patient households through the direct wealth effect of life cycle hypothesis; population aging will significantly inhibit the consumption rate of impatient households through the indirect substitution effect of housing price-to-income ratio.

Public Economics & Administration

An Analysis of the Effect of Enterprise Income Tax Preferential Policy on the Improvement of Technological Competitiveness of High-Tech Enterprises

SUN Jian-fu, HE Jia

2020, 0(3):  26-37. 

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Enterprises are the major part of scientific and technological innovation, and the competitiveness of science and technology reflects a country’s comprehensive strength. In order to promote the competitiveness of high-tech enterprises in science and technology, Chinese government has formulated a series of preferential policies for enterprise income tax. The findings of the research show that, on the whole, China’s corporate income tax preferential policies can help to improve the technological competitiveness of high-tech enterprises, however, the preferential points of the current corporate income tax preferential policies to improve the technological competitiveness of high-tech enterprises do not match the actual demand points of the enterprises, especially, the effect of the preferential policies of corporate income tax with 15% tax rate is not well to the satisfaction. Therefore, the government should match the preferential strength with the importance of the factors affecting the competitiveness of high-tech enterprises in formulating the preferential policies of enterprise income tax, improve the conditions for the recognition of high and new technology enterprises in The Measures for the Recognition and Management of High and New Technology Enterprises, and continue to carry out the proportion of 75% of the R&D expenses plus deduction, even increasing the proportion appropriately.

Reassessment of the Effect of Preferential Tax Policy for Recycling Resources: An Empirical Analysis Based on Tax Source Survey Data

XIE Hong-tao, ZHANG Jian-shun

2020, 0(3):  38-49. 

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As a policy arrangement to motivate enterprises to innovate in green technologies and to comprehensively use resources for pollution reduction, the preferential tax policy for recycling resources has been implemented for many years. The existing policy evaluation researches have considerable flaws in their methods and data resources. This paper uses PSM method to conduct an empirical test of the micro enterprises data from the national tax survey. The findings show that this policy has a significant reduction effect on manufacturing enterprises’ full use of the intermediate products and the waste; as for the professional waste resources comprehensive utilization enterprises (the environmental protection enterprises), the preferential policies have increased the amount of waste purchased by such enterprises by 15%~17%, that is, the policy has promoted the formation of a professional waste disposal market. However, the policy does not inspire green technological innovation in the manufacturing industry. In order to enjoy the preferential policies, a number of enterprises have adopted low-end physical methods to deal with the waste, and the products have the risk of secondary pollution. Therefore, it is suggested that the identification conditions for the preferential policies should have a higher threshold and the enterprises should be encouraged to develop and apply high-end environmental protection technologies, so as to truly improve the level of green technology innovation of the enterprises.

Modern Finance

Is Bank Credit Discrimination the Result of Government Intervention: Evidence from the Reform Process

HUANG Ke, ZHU Ying

2020, 0(3):  50-63. 

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Through collecting the data of bank loans of China’s listed enterprises during the period of 2005-2016, this paper conducts a study based on the relationship between government and market in the process of China’s economic transition. The findings show that with the transform of government functions and the reform of banking system going deeper and deeper, the government intervention becomes much less powerful in the explanation of credit discrimination, and implicit guarantee becomes the main cause of credit discrimination. To be specific: (1) when the enterprise characteristics factors are under control or separated, there still exist significant differences between the state-owned enterprises and the private enterprises in their credit accessibility; (2) the banks’ credit policies towards enterprises with different ownership have no differences to banks and regions with different degrees of government intervention; (3) the lower the proportion of the tax paid by enterprises in the local financial revenue, the lower the proportion of fixed assets, the bigger the ownership difference of bank credit; (4) financial marketization can reduce the ownership differences of bank credits by hardening the soft budget constraints of SOEs. Under the background of deepening financial reform, how to further eliminate from the root the resource mismatching problems resulted from bank credit discrimination will be the direction for the next step financial reform.

Research on the Function of Interest Rate Swap on the Price Discovery of National Bond Spots in China

ZHANG Chong

2020, 0(3):  64-77. 

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In the context of interest rate marketization and RMB internationalization, from the three perspectives of the causal relationship between interest rate swap and national bond spot, the price discovery contribution and the volatility spillover effects, this paper conducts an in-depth study of the relationship between interest rate swap and national bond spot. The findings show that there is a long-term stable co-integration relationship between interest rate swap and national bond spot. The price discovery function of interest rate swap is stronger than that of national bond spot, and the synergy between the two markets is mainly driven by interest rate swap. Moreover, in the short term, only interest rate swap has a volatile spillover effect on the national bond spot; in the long term, there is a two-way volatility spillover effect between interest rate swap and national bond spot. Stocks and exchange rates only have a significant impact on the long-term correlation coefficients, no significant effect is found on the short-term correlation coefficients. Therefore, we should pay attention to the market impact brought by financial derivative transactions, fully consider the impact of the derivative market on the financial market stability, vigorously develop the interest rate derivative market, establish a dual-pillar system of interest rate swap and bond futures, and focus on the development of interest rate derivatives based on policy tools. We should also better identify and judge the impact of market information, effectively improve the hedging efficiency of interest rate swap, and increase the hedge ratio of long-term interest rate swap on national bond spots in the market environment of rising stock markets and devaluating exchange rates.

Business Administration

Will Media Attention Affect the Quality of Enterprises’ Patents

YUAN Ze-ming, XU Cheng-kai, JIN Yu

2020, 0(3):  78-89. 

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Taking 2007-2016 Chinese A-share listed companies as samples, this paper conducts a test of the impact and the mechanism of the media attention on the quality of corporate patents with the quality data of company patents manually collected by the knowledge width method. The findings show that media attention can significantly reduce enterprises’ patent quality, and this conclusion is still valid when the endogenousness is under control, and that the suppressive effect of media attention on patent quality is more significant in non-state-owned enterprises. It is also found through further distinguishing media types that the policy-type media has a more significant effect on reducing patent quality. The mechanism tests indicate that media attention can reduce the patent quality of enterprises mainly through motivating the catering motivation of the management.

Enquiry Letter Supervision and Corporate Real Earnings Management Strategy

ZHANG Yan

2020, 0(3):  90-101. 

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By making use of the enquiry letters disclosed by stock exchanges from 2015 to 2018, this paper investigates the impact of enquiry letter system on the real earnings management behaviors of the listed companies. The existing literatures point out that the enquiry letters in the financial reports can restrict the accrued earnings management of the listed companies, while this study finds out that the listed companies receiving enquiry letters in financial reports can turn to implement real earnings management. Further study finds out that the behavior of implementing real earnings management by the companies receiving the letters would be more significant in the enterprises with severe agency problems; however, it is restricted in the state-owned firms and the firms with higher reputation auditors or with longer listed years. The above study shows that there is still a certain blind spot of supervision in the enquiry letter system in China’s securities markets. The conclusion of this paper can provide the theoretical basis and policy reference for regulators to improve their regulatory measures.

Will Platform Enterprises Entering the Complementary Markets Promote the Complementary Enterprises’ Innovation Responses: Taking Apple’s Entry into the Photography and Video Markets as an Example

NING Ping, YANG Hui-xin

2020, 0(3):  102-113. 

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The behavior of the platform enterprises entering into the complementary markets and competing with complementary enterprise in the value capture link will generate significant impact on the innovation of platform enterprises. Taking Apple Inc. entering the application market by introducing the software of Clips into the photography and video market as a case, this paper employs the difference-in-difference model to examine the innovation response of the complementary enterprises after the entrance of the platform enterprises with the consideration of the impact of the scale heterogeneity of the complementary enterprises. The findings show that the platform enterprises’ entrance into the complementary market has stimulated the innovation of the complementary enterprises, and that compared with the small scale complementary enterprises, the large-scale complementary enterprises may adopt more active innovative strategies when faced with the entrance of the platform enterprises. In the short term, the platform enterprises entering the complementary markets may improve the efficiency of the platform ecosystem; however, this influence may not be significant in the long term, the platform enterprises can optimize the platform ecosystem by entering the complementary market.

Industry & Trade

Has Imported Product Variety Raised Corporate Cost-Plus?

XU Tong-sheng, FANG Yu-xia

2020, 0(3):  114-125. 

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By employing the difference-in-difference method and the instrumental variable method, this paper matches China Industry Business Performance Database with the customs statistical database from 2000 to 2007 to study the impact of imported product variety on corporate cost-plus. The results indicate that, in general, there is U-shaped relationship between the imported product variety and corporate cost-plus,that is to say, with the increase of imported product variety, the corporate cost-plus would fall down. When the imported product variety reaches a certain threshold value, the corporate cost-plus will go up. Viewing from the sub-samples, the impact of the imported product variety on the corporate cost-plus has obvious heterogeneity, which depends on the type of corporate import trade, corporate technical level, the types of imported products and the location of the enterprises. The mechanism test shows that competitive effects and technology spillover effects are the channels through which the imported product variety affects the corporate cost-plus. Therefore, in order to increase corporate cost-plus, enterprises should continuously increase the imported product variety, and the government should adopt different import development strategies against the different technical levels, different regions, different trade types, and different types of products.

Modern Accounting

Will Managerial Power Affect Bank Loan Contracts?

YAN Huan-min, ZHANG Yan-hua, LI Yao-yao

2020, 0(3):  126-136. 

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By making use of the data of China’s A-share listed companies from 2007 to 2017, this paper examines the relationship between corporate managerial power and bank loan contracts. The results show that the increase of managerial power will significantly reduce the size of bank loans, and the access to bank long-term loans would be more difficult. The level of marketization development can effectively alleviate the negative effect of management power on bank loan contracts. The extended analysis finds out that the greater the power of the company’s managers, the higher the company’s operating risks, and the lower the company’s solvency and the quality of earnings information, which would lead banks to raise the credit conditions. The heterogeneity of company management, the ownership structure, the level of government intervention and the level of rule of law all have a certain moderating effect on the relationship between the managerial power and bank loan contracts.

The Payment Method for Mergers and Acquisitions, the Participation of the Targets in Corporate Governance and the Realization of Performance Commitment

YU Yu-miao, RAN Yue

2020, 0(3):  137-148. 

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In recent years, the frequent occurrence of merger and acquisition performance commitment defaults has seriously damaged the interests of listed companies and their shareholders. Taking the GEM and small and medium-sized board companies which have fulfilled their performance commitment agreements during their merger and acquisition transactions from 2013 to 2017 as samples, this paper studies the impact of the payment method of mergers and acquisitions on the rate of reaching the performance commitments of the target enterprises. The findings show that during the process of merger and reorganization, the two payment methods including the share form are more likely to realize the performance commitment than the single cash payment method. The original shareholders of the target enterprise serving as the acquirer’s board or supervisor and participating in corporate governance are conducive to the realization of the performance commitments.