Table of Content

15 April 2019, Volume 0 Issue 04

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Urban Housing Price Bubble and Financial Stability: An Empirical Study Based on the PVAR Model of 35 Large and Medium-Sized Chinese Cities

SHEN Yue, LI Bo-yang, ZHANG Jia-wang

2019, 0(04):  1794. 

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The ever expanding housing price bubble has become the largest“grey rhino”hidden in Chinese economy. Based on the expected equilibrium price model of real estate, this paper makes a scientific measurement of China’s urban housing price bubble. On the basis of theoretical analysis, it takes the panel data of 35 large and medium-sized cities during the period of 2000-2017 as the samples to conduct an empirical analysis of the dynamic relationship between China’s urban housing price bubble and financial stability with the PVAR model. The findings shows that the impact of housing price bubble on financial stability can support the price deviation hypothesis, in the eastern cities and the cities with stronger financial support, the housing price bubble has a greater destructive effect; moreover, compared with bubble expansion, the reduced housing price bubble has a stronger impact on financial stability. In this regard, the real estate regulation and control should adhere to the differentiated regulation measures according to the real conditions of the cities, squeeze out the bubbles in a fine adjustment way, guard against the risk of“two way imbalance”in the implementation of regulation policies, speed up the establishment of a long-acting housing system with multi-subject supply, multi-channel protection, and the double way of rent and purchase.

Fiscal Decentralization, Promotion Incentives and the Rural Public Health Services Supply: An Empirical Study Based on China’s Provincial Panel Data

HU Yu-jie1，PENG Hui2

2019, 0(04):  1795. 

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The No. 1 Document in 2018 of the Central Committee of CPC points out that the government owes too much to the people’s livelihood in China’s rural areas, and the imbalance between supply and demand in rural public services is prominent. In the context of the Rural Revitalization Strategy, it is of great significance to solve these problems. To this end, this paper makes use of China’s provincial panel data to conduct an empirical test of whether the fiscal decentralization effect hypothesis is applicable to China’s rural public service field from the perspective of fiscal decentralization. The results show that fiscal decentralization has a positive impact on the rural public health care service supply, while the degree of promotion incentive has a significant negative impact. At the same time, there is a serious problem of insufficient and imbalanced regional development in China’s rural public health services. Thus, it is necessary to deepen the financial system reform that matches the financial power, improve the performance appraisal mechanism of government officials, establish and improve the public demand expression mechanism for the farmers, and further improve the supply efficiency of rural public health services.

How will Breaking the Politics-Business Revolving Door Affect Stock Price Crash Risks: A Quasi-Natural Experiment Based on No. 18 Document of the Organization Department of the Central Committee of CPC

2019, 0(04):  1796. 

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By making use of the quasi-natural experiment of the officials as independent directors resigning in groups resulted from the issuing of“The Opinions on Further Solving the Issue of Party and Government Leading Cadres Holding Part-time or Full-time Positions in Enterprises”by the Organization Department of the Central Committee of the Communist Party of China, this paper explores the impact and the action mechanism of the closing of the politics-business revolving door on the stock price crash risks. The findings show that in the non-state-owned listed companies, the resignation of officials as independent directors has significantly reduced the companies’ share price crash risks. The results of further analysis show that if the listed companies have higher reliance on external financing, worse legal environment of the location, more severe rent-seeking, and more government intervention, the stock price stabilizing effect after the resignation of officials as independent directors is more significant, which suggests that the closing of the politics-business revolving door can bring the financing constraints tightening effect, the regulation implementing strengthening effect, the rent seeking interruption effect, and the policy burden alleviating effect, all of these will effectively reduce the stock price crash risks. To standardize the rules and measures for the purification of the relationship between the government officials and the businessmen is helpful to stabilize the financial markets.

Embedding and Feedback: Affiliation Level, Governmental Subsidies and Charitable Donations of Chinese SOEs

WANG Li-xiang, YAO Xiao-tao

2019, 0(04):  1798. 

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What is the logic of the charitable donation behaviors of Chinese state-owned enterprises? What kind of SOEs will make more active donations? Based on the data of 975 Chinese listed SOEs during the period of 2010-2016, this paper empirically investigates the influence of SOEs’ affiliation level and government subsidies on their charitable donations, as well as the moderating effects of political connection and government intervention. The results show that firstly, the affiliation level of SOEs is negatively correlated with their charitable donations, the local SOEs at the lower level will donate more because of their higher level of embeddedness and reliance on the localities; secondly, the government subsidies obtained by SOEs are positively related to their donations, and donations have become a way for SOEs to feed back to the government. In addition, as the political connections of corporate management and the intervention level of the local government will enhance SOE’s local embeddedness and needs for feedback, both of the two will positively adjust the above relationships. Finally, through further investigations of such factors as institutional pressure that SOEs are faced, social expectations, and so on, it is also verified that the donation decision-making of SOEs is following the two behavioral logics: embedding and feedback.

The Formation Mechanism and Model Construction of Enterprise Intellectual CapitalBased on Multi-Stage Dynamic Investment

YUAN Ye-hu1, LIU Si-jia2, SHU Hai-tang1

2019, 0(04):  1799. 

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Based on the path dependence of enterprise knowledge evolution, this paper makes an analysis of the stage characteristics of dynamic investment formation of intellectual capital. It also constructs a multi-stage dynamic evolution investment decision-making model of intellectual capital with the real option method, upon which it reveals the formation mechanism of enterprise intellectual capital and expands the traditional investment decision model of entity projects into the multi-stage dynamic investment decision model of intellectual capital.

How Would the Synergy Effect of Industrial Agglomeration Affect Corporate Innovations: From the Perspective of Symbiosis Evolution of “Geography, Technology and Organization”

DAI Yi-xin1, LI Xing2, CHAO Xian-feng1

2019, 0(04):  1800. 

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The existing researches have already begun to pay attention to the negative externalities existing in the over-aggregation of regional enterprises. Compared with the“flocking together”in scale or form, more attention should be paid to the internal synergistic validity during the industrial agglomeration process. From the perspective of “geography, technology and organization”, this paper constructs the index of synergy effect of industrial agglomeration with the triple helix algorithm and finds out the characteristic facts that the synergy effect of industrial agglomeration in China is declining. The empirical results show that improving the synergy effect of industrial agglomeration can promote enterprise innovation and the promotion of enterprise innovation is mainly realized through resource allocation effect and knowledge spillover effect; the synergy effect of agglomeration has a greater impact on the innovations of private enterprises, the enterprises located in central regions, labor-intensive enterprises and start-up enterprises; poor market institutional environment and excessive government intervention will weaken the effect of industrial agglomeration synergy on corporate innovation. Therefore, local governments should develop effective industrial strategies and plans based on local geographical and resource advantages, and guide the introduction of enterprises and resources with the industrial chain as the center. The local governments should also strengthen the institutional construction, make the market play a decisive role in factor flowing and enterprise location selection, and let the enterprises become the core of industrial agglomeration and innovation.

The Renewable Energy Cooperation between China and Brazil: From the Perspective of the Comprehensive Strategic Partnership

XU Yan-ran

2019, 0(04):  1801. 

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To develop the comprehensive strategic partnership is one of the important measures for China to carry out active diplomacy. This paper makes an analysis of the renewable energy cooperation between China and Brazil from the perspective of the comprehensive strategic partnership between the two countries. The findings show that the renewable energy cooperation between China and Brazil is an important component of the two countries’ comprehensive strategic partnership, that the political mutual trust of the two countries based on the comprehensive strategic partnership has increased the comparative advantage profits from the cooperation of the renewable energy industries between the two countries, and that the negotiation mechanism under the comprehensive strategic partnership can effectively prevent and solve the future conflicts that may occur during the cooperation. In order to promote the renewable energy cooperation between the two countries, it is necessary to strengthen the comprehensive strategic partnership with the intelligent relationship playing a leading role and to reinforce the information transparency in the development of the comprehensive strategic partnership.

Can Relaxing Short Selling Control Inhibit Listed Companies from Violating Regulations?

LEI Xiao, TANG Xue-song, ZHENG Yu-xin

2019, 0(04):  1802. 

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By taking advantage of China’s quasi-natural experiments of introducing loose short-selling controls, this paper examines the impact of short selling mechanisms on corporate irregularities. The findings show that short selling mechanisms can inhibit corporate violations. Further research has found that good internal control can strengthen the suppression effect of short selling mechanism on corporate irregularities. Compared with state-owned enterprises, short selling mechanism has a stronger inhibitory effect on the irregularities of private enterprise.

Does Private Equity Investment Have the Power to Select Trading Opportunities？

WANG Jian-feng1, WANG Hui-juan2, ZHANG Ran3

2019, 0(04):  1803. 

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Taking the A-share companies listed for the first time in Shanghai and Shenzhen Stock Markets during 2006-2012 which involve private equity investments as the research samples, this paper systematically investigates the timing behavior of the private equity investments. The findings indicate that unlike reducing share-holdings by other insiders within the company, the private equity investment can only earn excess earnings by selling shares, it cannot avoid possible losses in a timely way, thus the private equity investment only has the passive power to select the trading opportunities. As for the characteristics of the private equity investments, the larger the investment scale, the longer the investment period, the stronger the passive power to select that is owned by the private equity investments which have resident directors and syndicated investments. From the perspective of investment background, compared to non-state-owned private equity investments, the state-owned private equity investments have stronger passive timing ability. Further analyses shows that during the period of reducing share-holding, the private equity investments would create more favorable trading conditions for their passive timing behavior by reducing the quality of information disclosure. The conclusions of this study can not only enrich the relevant literatures about reducing share-holdings by the insiders, but also provide some theoretical references for the government to formulate regulatory policies.