Table of Content

15 August 2012, Volume 0 Issue 08

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A New Round of Industrial Revolution Is Knocking at the Door, What China Will Do?

RUI Ming-jie

2012, 0(08):  1550. 

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A new round of industrial revolution has been quietly approaching; this round of new industrial revolution is not just due to the development of new industries resulted from the development of new technologies, but due to the dramatic changes of the production mode and manufacturing mode of the manufacturing industry resulted from the new technological revolution. Faced with such changes, the United States and other developed countries have launched the so-called“re-industrialization”with the purpose of grasping the new round of big changes of the manufacturing industry, occupying the dominant position in the new round of global division of labor, and restoring the international competition force of the U.S. economy. Although China’s current manufacturing output value has surpassed that of the United States, yet the overall level of China’s manufacturing industry is still lacking technical contents and staying at the lower-middle links in the manufacturing value chain; the more important is that the production mode and the manufacturing mode of the manufacturing industry is still stuck in the state of the beginning or middle term of industrialization, far away from the new round of industrial revolution. Whether being able to seize this historic opportunity of the new industrial revolution, even to catch up and surpass the developed countries during this process, is the key to the transformation and upgrading of China’s manufacturing industry; if not, it is likely that China will continue to lag behind. In such circumstances, we should earnestly study the ideas and strategies to cope with it, try to find a new industrialization road for the manufacturing industry to upgrade, change and develop. We should make bold explorations and deepen the reforms in such aspects as new industrial system construction, selected development of the strategically advanced manufacturing industries, matching pattern designing of the advanced manufacturing industry and the modern service industry, intellectual property protection, high-end talent creation, promotion of service innovation, market environment forging, etc., so as to make an active response to and plunge into the upcoming “third industrial revolution”.

A Study of Welfare Redistribution Effect of Nonlinear Pricing：Based on An Analysis of the Asymmetric Duopoly Market

CHEN Fu-liang

2012, 0(08):  1551. 

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Compared with linear pricing, the advantages of nonlinear pricing in the area of social welfare have been proved repeatedly in the existing theory. While confirming that the nonlinear pricing can improve the social welfare, this paper points out that not all market entities can get a welfare improvement through nonlinear pricing. By establishing models to calculate and analyzes, we propose that“welfare deprivation”may be found in some specific market entities by the nonlinear pricing in the above mentioned two different kinds of situations, which may lead to the welfare redistribution effect.

Reconstruction of Community Fiscal System：Background, Principles and Proposals

JIANG Jing-fa

2012, 0(08):  1552. 

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After the collapse of the unit-neighborhood system, the communities in China have got a nature of duality, from which a mixed dual duty structure is derived. This structure calls for a re-establishment of the principals for community financial system from such aspects as fund raising mode, budget supervision, and allocation program, etc.. There exist some defects in the present community financial system, such as one-sided design, insufficient fund resource for community outlay, lower efficiency of fund operation, lacking of coordination in community construction investment, etc. which seriously restrict the functions of modern community. In order to construct a community oriented public fiscal system, we need to clarify the division of responsibilities between the government and the community, give full play to community’s potential in self-governance and construct a comprehensive fund allocation mechanism.

A Study of Local Government’s Fiscal Responsibility Mechanism and Its Evolution

FU Jing-to

2012, 0(08):  1553. 

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The fiscal responsibility mechanism of local government is composed of fiscal responsibilities and fiscal activities of local government, the fiscal stakeholders and the fiscal accountability; it is a generalization of the influencing factors and their process of local government fiscal responsibility behaviors. The fiscal responsibility mechanism and its changes are decided by the economical, political and administrative systems. Whether in the system combination of “planned economy + weakened politics + centralized power of the central government” or in the system combination of “market economy + weakened politics + decentralized power of the central government”, the fiscal responsibility mechanism of local government in China is still to be improved. The feasible measures to be taken are to propel the decentralization reform at the political, administrational and fiscal levels, at the same time, supporting measures should be provided.

Competitive Financing Structure and Regional Debt Capital Market Construction

LU Jia-liu

2012, 0(08):  1554. 

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In accordance with the theory of incomplete markets, starting from the unicity and diversity of the financial markets, this paper explores the relationship between the financial market efficiency and the financial structure competitiveness and then offers the concept of competitive financing structure. The competitive financing structure refers to the development of diversified financial system and its corresponding diversified financing channels, including the competitive financing institutions and the competitive financing tools. Therefore, the nature of China’s construction of multi-layer capital markets is to change the situation of the financing channels which were once monopolized by banking system and to establish the competitive diversified financing structure system through the development of the capital markets. The formation and development of China’s regional debt capital markets is the expression form of the development of the competitive financing institutions, while the innovation of financial tools on the basis of the capital markets can enlarge the room of assets income, and finally boost the completeness of China’s financial markets and the improvement of the financial efficiency.

On the Financing Choice of Listed Companies between Medium-Term Notes and Corporate Bonds

LI Zhan

2012, 0(08):  1555. 

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In recent years, medium term notes and corporate bonds are developing reversely; however, what is the internal mechanism of the changes of preference between corporate bonds and medium term notes in the listed companies? The study of this paper finds that the high threshold for bonds issuing set by the China Securities Regulatory Commission makes the companies which can issue bonds have the characteristics of longer listing time and higher growth rate of EPS. Under this kind of strict regulation, the issuing companies are not showing better financial characteristics. On the contrary, companies with large scale and abundant free cash flow would prefer to issue medium term notes. Free cash flow per share is lower before issuing debt while the quick growth of EPS is to reach the standard with earnings control. The strict regulation on corporate bonds makes the bond market in the stock exchanges shrink, which reduces the liquidity of corporate bonds. In order to make up the loss in liquidity, the coupon rate of corporate bonds is higher than that of medium term notes, which makes the listed companies even prefer to issue medium term notes.

Effects of Mechanism and Route of Specialized Market Brands on Embedded Brands: Analysis Based on Questionnaire about Yiwu“China Commodity City”

XU Li-xin

2012, 0(08):  1556. 

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Consumers are deeply influenced by the brand images of the specialized markets they are staying when selecting the embedded brand of one certain enterprise. By applying the category reasoning theory (CT) and the Accessibility-Diagnosticity Framework (ADF), this paper studies the influence of inherent mechanism and route of specialized market brand on the embedded brands. And by constructing the corresponding structure equation model, it conducts an empirical test with the market research data about the “China commodity city” in Yiwu. The results show that the specialized market brands are influencing the embedded brands through the two routes, i.e. consumers’ “faith to brand essence attribute” and “brand trust”. During the course of this kind of influence, the “typicality of the embedded brands” and the “familiarity of customers to the embedded brands” are playing a significant regulatory role.

A Study of Fair Value Measurement and Executive Compensation Incentives in Listed Companies

ZHOU Hui

2012, 0(08):  1557. 

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In the context of the implementation of the new accounting standards, the fair value information has become a new factor that cannot be ignored during the executive compensative evaluation. This paper studies the influence of fair value measurement of China’s listed companies on the executive compensation by taking the “changes in fair value loss and profit”in the profit statement as an alternative variable of fair value. The empirical test results show that there is a significant positive correlation between the fair value gains and the executive compensation, while the fair value losses have no obvious effect on the executive compensation. The changes in the fair value loss and profit of the companies with different property rights have a disparate impact on the executive compensation. The changes in the fair value loss and profit have no striking influence on the sensitivity of the performance-related executive compensation of the whole company. This study indicates that the executive compensation incentive mechanism of China’s listed companies remains to be improved.

A Measurement Study of Economic Growth Transition Based on Quality Index: A Case of Economic Growth in Shenzhen

XIANG Shu-jian

2012, 0(08):  1558. 

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How to realize the transition of China’s economic growth from “speed type” to “quality type” is a problem full of exploratory contents; scholars give it wide attention from different theoretical perspectives. And it is an indispensable part of the theoretical research to design an index to measure the transition process from speed to quality from the quantitative angle, so as to visually reflect the degree of transition of economic growth. By drawing on the economic principles and design ideas of the market index, this paper designs the quality index as the quantitative indicator to measure the transition of economic growth model, and quantitatively measures the degree of realization from “Shenzhen speed” to “Shenzhen quality”. The results of the empirical evaluation indicate that “Shenzhen speed” has begun to transit to “Shenzhen quality”, but the improvement of people’s living standards falls behind substantially the level of economic development of Shenzhen. Regarding this as an opportunity, this paper provides an analytical idea for a quantitative measurement of the economic growth transition in China.

Research on the R&D Efficiency of Resource-Based Industries in the Western Region: Based on the Analysis of DEA

ZHANG Wei

2012, 0(08):  1559. 

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From the two perspectives of industrial operating performance and innovative output performance, by applying the input-oriented DEA model of constant returns to scale (CRS) and the super-efficiency method, this paper conducts an empirical analysis of the R&D efficiencies of resource-based industries in the twelve western provinces. The results indicate that under the existing level of output, the efficiency of R&D input of the resource-based industries in those provinces is relatively lower. The differences in industrial R&D strength, R&D management efficiency and operating performance created by R&D results from the same resource-based industries of those provinces lead to the different degree of contribution of R&D input within the same industry. Among the three factors, the difference in operating performance produced by R&D results is the major reason.

Audit System, Audit Method and Government Audit Quality: from the Perspective of Formal and Informal Institutions

WANG Fang

2012, 0(08):  1560. 

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As a formal institutional arrangement, the audit system has such problems as path reliance and higher reform cost in the course of reform and reconstruction. Compared with the audit system, the audit method as the informal institutional arrangement is easier to change, and it can play a more active role in the improvement of government audit independence and government audit quality. The empirical research results of this paper indicate that the audit quality of cross-audit method is higher than that of non-cross-audit method; under the present audit system, the audit quality of resident offices is higher than that of local auditing offices, i.e. the audit quality of the resident offices under the vertical leadership of the National Audit Office is higher than that of the local audit offices which are under the dual leadership. Therefore, under the present conditions that the audit system is difficult to reconstruct within a short period of time, more flexible and feasible audit methods can be adopted to compensate for the deficiency of government audit independence under the current audit system, so as to improve the government audit quality. In the long run, to reform the government audit system is the fundamental way to improve government audit quality. However, whether for audit system reform or for audit method innovation, the substantial independence of government audit must be improved.

Have Accounting Standard Changes Improved Usefulness of Credit Decision in Parent Company’s Statement? From the Perspective of Debt Maturity Structure

LI Ni

2012, 0(08):  1561. 

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The present financial reports in China include both the consolidated statements and the parent company’s statements. Taking A share of non-financial firms in the period from 2004 to 2009 as samples, this paper investigates the impacts of accounting standard changes on the usefulness of credit decisions in the parent companies statements. The research results indicate that the parent company’s statements under the formal standards provide the creditor with no incremental information in addition to the consolidated statements. When the new standard is implemented, the content of incremental information in the parent company’s statements is improved significantly. Further study indicates that the effect of accounting standard changes on the usefulness of accounting information will be affected by the demand for accounting information.