Contemporary Finance & Economics

Research on the Influence of Internet on the Value Creation of Manufacturing Enterprises: From the Perspective of the Link of Value Creation

XU Yuan-bin, LU Fu-cai

2021, 0(1): 3-13.

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In the context of accelerating the construction of a modern industrial system and promoting the optimization and upgrading of the economic system, it is of great theoretical and realistic significance to explore the role of Internet in the value creation of manufacturing enterprises from the perspective of the link of value creation. The theoretical analysis shows that Internet can promote the value creation of manufacturing enterprises through the mass custom-tailored production modes, the new marketing models combining online and offline, and the servitization of the manufacturing enterprises. The empirical research that makes use of the 2012 World Bank survey data of Chinese manufacturing enterprises indicates that the use of the Internet in production, marketing and service links by manufacturing enterprises can all effectively promote the level of value creation of manufacturing enterprises. The findings of further research show that the effect of the use of Internet in the service link by manufacturing enterprises on the value creation is stronger than that in the production and marketing links. Therefore, during the critical period of transformation and upgrading of manufacturing enterprises, the government should speed up the construction of network infrastructure and industrial Internet platforms.

High Speed Rail and High-Quality Development of Urban Economy: An Empirical Study Based on the Data of Prefecture-Level Cities

LIU Jia, HUANG Xiao-feng, CHEN Jun

2021, 0(1): 14-26.

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Based on the data of 282 prefecture-level cities in China from 2005 to 2016, this paper constructs an evaluation index system of high-quality development of urban economy from the five dimensions of innovation, coordination, greenness, openness and sharing. The findings of the study that employs the difference-in-differences method show that the opening to traffic of high-speed rails has significantly improved the level of high-quality economic development of the cities along the railways. In the long-term, this role is mainly reflected in the two connotative dimensions of innovation and coordination. The heterogeneity analysis demonstrates that the opening of high-speed rails has the stronger promoting effect on the high-quality economic development of large cities and provincial capital cities, but has no obvious effect on small and medium-sized cities and non-provincial capital cities. The analysis of the affecting mechanism indicates that the entrepreneurial activity, the rationalization of industrial structure and the industrial structure supererogation have a significant promoting effect on the quality-oriented growth of cities with high-speed rails.

Performance Management and Risk Prevention of Local Special Debt under the Impact of COVID-19

LI Hong-xia, ZHANG Yang

2021, 0(1): 27-38.

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At present, the comprehensive implementation of budget performance reform has become a breakthrough in the profound reform of government governance; it is also an inevitable requirement for the improvement of the modernization of national governance capacity. In 2020, COVID-19 is spreading around the world, and the impact of COVID-19 on China’s economy is increasing. As an important measure of counter-cyclical fiscal policies, the local special debt has become a direct force to stimulate economic growth. However, with the increase and expansion of the special debts in recent years, the performance management and risk prevention and control of the special local debts are becoming significantly important. At present, investment demand across the country has continued to rise. In many places, projects have been launched in a hurry, and there has been a trend of herd phenomenon. There are such outstanding problems as“idling”of the special debt funds, inflated returns, incomplete information disclosure, and weak supervision, leading to frequent hidden risks on the investment in special debts. At present, the counter-cyclical fiscal policy has entered the“window period”, then how to think calmly about the special debts, how to strengthen the performance management of special debts starting from the bottom line requirements of“preventing risks and stabilizing expectations”, how to establish a dynamic early warning mechanism against the special debt risks, and how to strengthen the disclosure mechanism of special debt information and forge“sunshine debt” have become important issues that need to be resolved urgently.

The Status of Provincial Governments in Local Debt Management: Real Dilemmas and Governance Transformation

YUE Hong-ju, CHEN Jun

2021, 0(1): 39-48.

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The stipulations of the Budget Law authorize provincial governments to exercise the borrowing rights, making the provincial governments not only being the leaders of the financial system reform under the provincial level but also holding the powers to issue exclusive bonds, distribute debt limits to cities and counties, and manage the unified-borrowing and unified-lending business. While there exist contradictions in debt borrowing, debt using, debt repaying and mismatched level-to-level management subjects in the provinces, the debt management powers of the provincial governments are offset by the debt supervising power of the Ministry of Finance. As the switching hub in the relationship between the central and local finances, the provincial governments are not only the core of the debt management system, but also the key to the reform of tax distribution system. Limited by the degree of power separation standards between the central and local governments, the multiple functions of the provincial governments and the constraints of the debt management system, the present debt management of provincial governments is hard to meet the requirements of“the central government does not rescue”,“the provincial governments should undertake overall responsibilities”, and “the governments under the provincial governments take their own responsibilities”. Under the premise of clarifying the status of provincial governments, the direction of the institutional reforms should be turned from management to governing, highlight the multiple interaction between the central and provincial governments, between the provincial governments and the governments under them, and the governments and the markets, and realize the governance transformation of the integration of concentration and decentralization, of the integration of market constraints and government control in levels, and of the integration of democratic governance and legal governance.

On the Natural Transition of Capital Outflow Surges in Emerging Countries

YANG Yi

2021, 0(1): 49-59.

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This paper makes an analysis of the quarterly data of the cross-border capital flows of 39 emerging countries from 1998 to 2017 with the panel smooth transition regression model. The findings show that, firstly, during the high-risk periods of the international financial markets, the capital outflow surges are mainly in the form of short-term capital outflow; while during the low-risk periods of international financial markets, the capital outflow surges of the emerging countries are mainly in the form of the increase of OFDI. Secondly, with the improvement of economic strength, the capital outflow surges of emerging countries are no longer always reflected as capital flight with the purpose of hedging, sometimes it manifests as an increase of outward investment with investment nature. Thirdly, as the impact of domestic economic growth on outward direct investments is opposite to that on outward short-term investment, the natural shift of the capital outflow surges in emerging countries has produced a non-linear impact of domestic economic growth on capital outflow surge in emerging countries. Therefore, the emerging countries should not be too panic when faced with the capital outflow surges, they should distinguish the different natures of the capital outflow surges, resolutely implement the opening-up strategy and the policies that seek advantages and avoid disadvantages, maintain the stability of cross-border capital flows and economic fundamentals, and promote the continuous optimization and upgrading of their domestic economic structure.

Will the Strong Dollar Influence RMB’s Currency Anchor Status?An Empirical Analysis Based on 35 Countries along the Route of the Belt and Road

ZHOU Yang

2021, 0(1): 60-72.

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Under the background of strong US dollar, this paper studies the influence of strong US dollar on RMB’s currency anchor status with an extended empirical model based on the data of 35 countries along“the Belt and Road”. The results indicate that, when US dollar is strong, 11 countries will choose the anchoring RMB to stabilize their currency exchange rates; when the dollar is weak, the influence of RMB is small. RMB, US dollar and Euro are the main currency anchors in the currency circle of the countries along the route of the Belt and Road. The findings of further research show that, in the strong dollar cycle, RMB’s currency anchor status is significantly improved, while US dollar’s currency anchor status is declined. The existence of trade relationship and trade competition is the reason for the improvement of RMB’s currency anchor status, in addition, RMB as a currency anchor is still limited to the areas of ASEAN, East Asian and South Asian countries, and its influence on other countries along the route of the Belt and Road is relatively weak. Therefore, strengthening international policy coordination, continuously deepening trade cooperation and promoting RMB pricing of staple commodities will help to enhance RMB’s currency anchor status and promote RMB internationalization.

Independent Directors’ Share-Holding and Duty-Performing Enthusiasm: Empirical Evidences Based on Independent Ideas

DENG Bo-fu, DONG Ya-hao

2021, 0(1): 73-85.

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Taking the data of China’s A-share listed companies as samples and starting from the basic fact that the independent directors are willing to hold the shares of the listed companies that hire them, this paper conducts a theoretic analysis and proposes the following assumption that the behavior logic of the share-holding independent directors is more aligned with the original intention of the design of China’s independent director system, i.e., the share-holding independent directors can be more independent of the management and the big shareholders, thereby performing their supervisory duties better. The empirical results show that in the companies with share-holding independent directors, the independent directors will express more dissenting opinions, which proves that the share-holding independent directors do perform their supervising duties more actively. Further analysis reveals that independent directors’ shareholding can not only reduce management expense ratio, but also be more likely to deliver dissenting opinions when the company has lower level of equity balance. It can better restrict the tunneling behavior of the large shareholders, i.e., the share-holding of the independent directors can have a better governance effect on the agency problems of both the first and second types. The empirical conclusion is still valid after the PSM method is used to control the problem of endogeneity. The above empirical evidences are both the explorations and tests of the economic consequences of the independent directors’ shareholding phenomenon, and also the analysis and reflection of the problem of how to enhance the independence of independent directors in the context of China’s institution.

The Action Mechanism of the Service-Oriented Leadership on Abusive Supervision: From the Perspective of the Moral Licensing Theory

GAO Ri-guang, GUO Xiao-xiao, ZHENG Kai-xia

2021, 0(1): 86-96.

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The service-oriented leadership characterized by altruism, service and humility has received extensive attention from the academic circles. However, little attention has been paid to the deviant behaviors of the service-oriented leaders after their“warm-hearted”behaviors. Based on the moral licensing theory, this paper adopts the paired data of multiple time points to conduct a statistical analysis. The results show that service-oriented leadership can exert positive impact on abusive supervision through the mediation of psychological rights, and the behavioral consistency of leadership acts as a “valve”when the abusive supervision is spawned on the service-oriented leaders. When the behavioral consistency of leaders is higher, the service-oriented leaders will want to have more psychological rights and produce more abusive supervision. When the behavioral consistency of leaders is lower, the abusive supervision of service-oriented leaders produced through psychological rights will be relatively weakened. This research result has important reference value for the comprehensive understanding of the service-oriented leadership theory and the prevention of the negative effects of the service-oriented leadership.

On the Synergistic Effect of Intermediate Trade Liberalization in Service Industry and Manufacturing Industry: From the Perspective of Export Product Quality

YE Di

2021, 0(1): 97-111.

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Taking the export product quality as the starting point, this paper uses the reduction of import tariff and the relaxation of FDI control to express the opening of intermediate input products in manufacturing and service industries, so as to discuss the synergistic effect of trade liberalization of intermediate goods in manufacturing and service industries on the improvement of export product quality. Firstly, it elaborates the occurrence mechanism of the synergistic effect by constructing an endogenous selection model of the quality of intermediate input export products, including the manufacturing industry and the service industry; on this basis it conducts an empirical test to verify the existence of the synergistic effect. The results of the heterogeneity analysis show that, except for the transportation industry, the finance, telecommunication, wholesale and retail industries all have synergistic effect with the reduction of intermediate input tariff in the manufacturing industry. There exists a synergistic effect between the deregulation of FDI intermediate input with equity restriction, examination and approval and other restrictions, while the synergistic effect of the relaxation of key personnel restriction is not significant. In addition, it is also found that the synergy effect is more significant in the enterprises with lower productivity, but in the foreign-funded enterprises and the processing trade enterprises, it is weaker.

Trade Liberalization and Servitization of China’s Manufacturing Enterprises

XIAO Ting, HUANG Xian-ming

2021, 0(1): 112-123.

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In the context of international trade liberalization, China’s enterprises are facing greater pressure of survival. This paper explores a way for enterprises to survive and develop in this kind of trading environment, that is, to increase the proportion of service supply in their business structure, so as to better adapt to market changes, which is called the servitization of manufacturing industry. The results of the measurement based on the data of the listed manufacturing enterprises show that the lower import tariff of the manufacturing industry causes enterprises to shift from commodity production to service supply, and the trade liberalization promotes and realizes the transformation of Chinese enterprises. It is also found through a mechanism analysis that, under the background of tariff reduction, the manufacturing industry outsourcing its production activities to foreign countries is not the key to realize its transformation of servitization, nothing but the cultivation of enterprises’ R&D ability is the important influencing factor to promote the reform of enterprise business modes under the background of trade liberalization. Because the R&D strength itself is the source of the enterprise comparative advantages, this also conforms to the mechanism of Heckscher-Ohlin theory.

Capital Market Opening and Effectiveness of Executive Compensation Contracts: A Quasi-Natural Experiment Based on the Trading Systems of“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects

SUN Ze-yu, QI Bao-lei

2021, 0(1): 124-136.

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In the policy context of the implementation of the trading system of“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects, this paper employs a multi-time point difference-in-difference model to examine the impact of capital market opening on the effectiveness of the target company’s executive compensation contracts. The findings show that the implementation of the trading system of“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects has significantly improved the effectiveness of the target company’s executive compensation contracts, which is manifested in the improvement of the executive performance-compensation sensitivity. The result of the mechanism test shows that the“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects have improved the effectiveness of the target company’s executive compensation contracts by optimizing their information environment and increasing their information content of the stock prices. Further research also finds out that the governance effect of the trading system of“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects has a continuously enhanced time effect. The trading system of the“Shanghai-Hong Kong”and“Shenzhen-Hong Kong”Stock Connects has also improved the non-lucky performance-compensation sensitivity of the target company’s executives, hence reducing the stickiness of the executive compensation.

Can Auditors Identify the Risk Signals Delivered in Analysts’ Forecast：A Textual Analysis Based on the Tone of Key Audit Matters

LIAO Yi-gang, YANG Yu-xin

2021, 0(1): 137-148.

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Taking China’s A-share listed companies from 2017 to 2018 as the samples, this paper studies the impact of risk signals forecast by analysts on the tone of key audit matters, which derives from the gap between analysts’ earnings forecast and auditors’ earnings expectations. The findings show that the higher the analysts’ forecast risks are, the more negative the tone of key audit matters will be. Media supervision has a positive moderating effect on the negative correlation between the two; while the quality of analysts’ forecasts has a negative moderating effect on the negative correlation between the two. The result of further mechanism study indicates that it is by revealing the earnings management risks that the analysts’ forecast risks will affect the tone of key audit matters.

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