Table of Content

15 June 2019, Volume 0 Issue 06

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Economic Policy Uncertainty, Financing Constraints and TFP: Empirical Evidences from Chinese Listed Companies

DUAN Mei, LI Zhi-qiang

2019, 0(06):  1816. 

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A stable economic policy can provide a stable external environment for business operations, which is conducive to the improvement of total factor productivity. On the contrary, an uncertain economic policy environment may hinder the improvement of total factor productivity. Based on the data of China’s A-share listed companies from 2002 to 2016, the findings of this study indicate that the uncertainty of economic policy has a significant negative impact on the total factor productivity of enterprises. Further distinguishing the nature, scale and location of the property rights of the enterprise, it can be seen that the negative impact of the uncertainty of economic policy on the corporate total factor productivity only applies to non-state-owned enterprises, small-scale enterprises and enterprises located in the eastern region. In addition, for non-state-owned enterprises, small-scale enterprises and the enterprises in the eastern region, the more abundant their internal cash flow, the less negative impact of the uncertainty of economic policy on their TFP. This indicates that the financing constraints faced by enterprises are an important way for economic policy uncertainty to affect the total factor productivity of the enterprises. The abundant internal cash flow alleviates the external financing constraints faced by the enterprises, thus reducing the negative impact of uncertainty of economic policies on the TFP of the enterprises.

Ownership Division, Household Registration Discrimination and Intergenerational Urban-Rural Wage Differences

MENG Fan-qiang1,2, WAN Hai-yuan2, WU Shan-shan2

2019, 0(06):  1817. 

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Based on the consideration of the intergenerational differentiation of migrant workers, this paper makes use of data of the 2016 China Mobile Population Dynamic Monitoring Survey and employs the wage differential decomposition method to analyze the issue of household registration discrimination and intergenerational differences faced by the new and the older generations of migrant workers in the urban labor market. The findings of the research show that the wage difference between the new generation of urban and rural labors is wider than that of the older generation. The difference in individual characteristics is not enough to explain the intergenerational urban-rural wage difference, while the intergenerational difference of household registration discrimination is the main cause of intergenerational urban-rural wage difference. Compared with the older generation of migrant workers, the new generation of migrant workers suffered even more serious discrimination in the household registration. The study of the two different forms of discrimination on the basis of same work with different pay and ownership divisions shows that no matter what are the degrees of same work with different pay or the split effect of ownership, the new generation of migrant workers are suffering more than the older generation of migrant workers, but the difference in the degree of same work with different pay is the main reason for the intergenerational differences in household registration discrimination. Further analysis finds out that the difference in the degree of same work with different pay mainly comes from the intergenerational differences in the “salary premium” of urban migrants, the new generation of urban migrants has gained more “salary premium” in the urban labor market.

The Notion of Tax Reduction and Fee Reduction with Chinese Characteristics

DENG Li-ping

2019, 0(06):  1818. 

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Tax reduction and fee reduction are important arrangements made by the Party Central Committee to grasp the overall situation and to deal with various risks and challenges at home and abroad. It is also one of the most important policy applications in China’s fiscal taxation and economic society in 2019. It is necessary to recognize the specific requirements of the important factors on China’s reduction of taxes and fees, such as China’s state system and polity, the market economy, and the stage of development at the time being, etc.. By expounding the concept of tax reduction and fee reduction with Chinese characteristics in the new era and grasping the six aspects, i.e., the major decision-making and implementation, the glorious tasks and income functions, the long-term requirements and specific missions, the paralleled tax and fee and effect grasp, the burden alleviation expectations and the rigidity of people’s livelihood, the taxation individuals and the masses, this study provides theoretical support and strong evidence for the current application of the larger scale tax reduction and fee reduction. This round of tax reduction and fee reduction is effectively implemented by the tax authorities, which reduces the level of taxes and fees of enterprises and obviously benefits them, thereby achieving high-quality economic development, and finally achieving“enhancing the sense of gain of the people”. Such is the fundamental goal of the notion of tax reduction and fee reduction with Chinese characteristics.

Research on China’s Local Government Debt Risk Early Warning System: Based on Analytic Hierarchy Process and Entropy Method Analysis

SHEN Yu-ting, JIN Hong-fei

2019, 0(06):  1819. 

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In recent years, the problem of China’s local government debt risk is becoming prominent, and the assessment of and early warning against debt risks are receiving much attention. Through constructing a local government debt risk early warning system based on the comprehensive indicators, this paper makes an empirical analysis of China’s local government debts. The findings show that China’s local government debt risk is generally controllable, but the average risk level shows a slight upward trend, and the risk levels of some provincial-level local governments have been increased. On the one hand, Beijing, Shanghai, Guangdong and the Yangtze River Delta region have the lowest risk level because of their large economic growth potential and strong solvency; on the other hand, some provinces in the northern and central regions have higher risk levels under the pressure of hidden debt problems and financing needs. Therefore, we should pay attention to the check and management of the hidden debts of local governments, and establish an effective risk early warning mechanism, so as to timely monitor, prevent and specifically address local government debt risks.

Financial Penetration, Capital Flow and Multidimensional Poverty: Evidence from China’s Counties

WANG Xiu-hua, ZHAO Ya-xiong, FU Pan-pan

2019, 0(06):  1820. 

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Based on the panel data of 1818 counties in 27 provinces of China from 2006 to 2017, this paper focuses on the county regions to study the impact of financial penetration on multidimensional poverty. The findings show that financial penetration can reduce poverty in a multidimensional way by improving the levels of economic development, fiscal revenue, farmers’ income, medical development, etc., in the counties, and this effect is more obvious in poor counties. With the improvement of financial penetration level, the financial institutions in poverty-stricken counties are not playing the role of “blood-drawing machine”, but achieve the effect of multi-dimensional poverty reduction by increasing the access of farmers’ funds; however, it should be noted that this effect should be heterogeneous between poor counties and non-poor counties, for the increase of financial penetration level in non-poor counties will lead to significant outflow of county financial funds, thus poverty reduction will be impaired. Therefore, at present, it is necessary to push the differentiated development of financial inclusion, the poverty-stricken counties should focus on addressing contact exclusion, the non-poverty-stricken counties should focus on the use of utility exclusion, so as to increase farmers’ access to funds and contribute to the realization of the goal of poverty alleviation in 2020.

Financial Development and Capital Mismatch: Empirical Analysis from China’s Provincial and Industrial Levels

CHEN Guo-jin, CHEN Rui, YANG Ao, ZHAO Xiang-qin

2019, 0(06):  1821. 

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Based on Aoki’s (2012) theoretical accounting framework, this paper measures and calculates the capital and labor mismatch coefficients at China’s provincial and industrial levels, employs the two-way fixed effect model to check the relationships between China’s provincial level and industrial level and between the financial development and capital mismatch respectively, and uses the two-step differential GMM and the system GMM to test the robustness. The results show that there is an“inverted U-type”relationship between the provincial level and the industrial level and between the financial development and the capital mismatch. When the financial development is at a lower level, the acceleration of capital accumulation will lead to an increase in capital mismatch, but when financial development reaches a higher level, this effect will be reversed; industries with high external financing dependence or high investment intensity will be benefited most from the financial development, while the industries with higher R&D intensity can potentially reduce the degree of capital mismatch, but its effect is not statistically significant. Therefore, the government should control the scale of bank credit and coordinate the levels of financial development in each region. It should encourage and support the industries with higher external financing dependence and investment intensity through bank credit and market-guided capital allocation to improve the capital allocation of the industry.

Can“Three Importants and One Large”Improve the Performance of State-Owned Enterprises? A Study Based on Quasi-Natural Experiments

LI Wan-li, XU Xi-xiong, TONG Xiao-ge

2019, 0(06):  1822. 

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By making use of the data of the A-share listed companies in Shanghai and Shenzhen stock exchanges from 2007 to 2014, this paper employs the double-difference model system to examine the policy effect and the mechanism of the opinion of the “three importants and one large” system on the performance of state-owned enterprises. The findings show that compared with the non-state-owned enterprises that are not affected by the opinion, the performance of the state-owned enterprises have been significantly improved since the implementation of the opinions of the “three importants and one large”. The results of the channel analysis shows that the opinion of the “three importants and one large”mainly plays its role in such channels as improving the internal control quality of state-owned enterprises, improving the investment efficiency of state-owned enterprises and the performance of mergers and acquisitions. Further research also finds out that the deeper the embedding of the Party organization governance, the more significant the effect of the opinion of the “three importants and one large”on the performance of state-owned enterprises. The above research conclusions not only provide empirical evidence at the micro level for the objectively evaluation of the actual implementation effect of the“three importants and one large”opinions, but also provide new ideas for further deepening the reform of state-owned enterprises.

On the Hotspots, Frontiers and Analytical Framework of Celebrity Endorsement Research: A Quantitative Analysis Based on the Core Collection Literature of Web of Science

XU Ji-nan, NIE Xuan

2019, 0(06):  1823. 

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After years of development, the research on the field of celebrity endorsements abroad has been fruitful. However, scholars at home and abroad have not combed the study of celebrity endorsements by means of bibliometrics. By employing such softwares as Bicomb 2.0, Citespace V, Ucinet 6.0 and SPSS 22.0, this paper conducts a bibliometric analysis of 372 articles on celebrity endorsements in the core collection of Web of Science. It systematically combs the research hotspots in the field of celebrity endorsements, which are reflected specifically in the seven aspects, such as the attributes of the celebrity spokespersons, the types of celebrity spokespersons, the negative information of the celebrity spokespersons, the public management and public health, the social networks, the advertising psychology effects and the brand communication effects. Based on the research hotspots, an analytical framework for celebrity endorsement research is constructed. Finally, it provides an outlook of the future research direction in the field of celebrity endorsement.

The Impact of Service Industry Opening on the Business Makeup Ratio: An Empirical Research Based on the Micro Data of China’s Manufacturing Enterprises

LI Fang-jing

2019, 0(06):  1824. 

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By making use of the production data of China’s manufacturing enterprises and the data of service industry FDI and foreign direct investment, this paper examines in depth the impact and the mechanism of service industry opening on the makeup ratio of the manufacturing enterprises. The findings show that the opening up of the service industry has a significant positive effect on the makeup ratio of manufacturing enterprises, and the service industry going abroad has a greater impact on the business makeup ratio. In the sub-sectors, the going abroad of such industries as leasing and business services, transportation, warehousing and postal services, information and communication services have a greater impact on the makeup ratio of the manufacturing enterprises, while the introduction in such industries as wholesale and retail services, financial services, scientific research and technical services has a greater impact. The results of the mechanism test show that the service industry opening up can affect the enterprise makeup ratio through the two channels of promoting new product innovation and improving enterprise productivity.

Research on the Measurement and Characteristics of Manufacturing Service Level in the Yangtze River Economic Belt

YANG Ling

2019, 0(06):  1825. 

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The development of manufacturing service industry is an important way to realize the industrial upgrading in the Yangtze River Economic Belt. This paper employs the non-competitive input-occupied output model and the input-output table to measure the manufacturing service rate of the 11 provinces and municipalities in the Yangtze River Economic Belt, as well as the domestic service rate and import service rate of the sub-divided manufacturing industry. The findings show that compared with the middle and upper reaches of the Yangtze River Economic Belt, the downstream region has not only no clear comparative advantage, but a comparative disadvantage. Its specific characteristics are as follows: the lease and business service, the information transmission, software and information technology service of the manufacturing industry in the lower reaches of the Yangtze River Economic Belt have a significant comparative advantage; the wholesale and retail service of the manufacturing industry in the middle reaches of the region has a significant comparative advantage; while in the upper reaches the transportation, warehousing and postal service, financial service, scientific research and technical service of the manufacturing industry have a significant comparative advantage. The import service rate of the manufacturing industry is generally low, which is mainly based on the domestic service.

Will the Tax Incentives for High-Tech Enterprises Generate Peer Pressure Effects?

YANG Ming-zeng, ZHANG Qin-cheng

2019, 0(06):  1826. 

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The tax incentives for high-tech enterprises will lead to large differences in income tax rates among companion companies, which will result in peer pressure effects. Based on the construction of peer enterprise relationship, this paper takes China’s A-share listed companies from 2008 to 2016 as research objects to conduct an empirical test of the impact of peer pressure generated by high-tech enterprises’ tax incentives on non-high-tech enterprises’ tax incentive rate. The findings show that the peer pressure will significantly increase the tax incentive rate of non-high-tech enterprises; the high-tech enterprise subsidiaries of non-high-tech enterprises have a mitigating effect on their peer pressure. The results of further research show that when the non-high-tech enterprises are state-owned enterprises, off-site enterprises or facing lower-intensity tax collection and management, the influence of peer pressure on their tax incentive rate is more significant.

Will the Intimate and Clean Relationship between Politics and Business Affect Corporate Innovations? Empirical Evidences from China’s Listed Companies

GUAN Kao-lei

2019, 0(06):  1827. 

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By making use of the health index of the political-business relationship and the data of China’s listed companies from 2013 to 2017, the paper makes an empirical analysis of the influence of the intimate and clean relationship between politics and business on corporate innovation. The findings show that the intimate and clean relationship between politics and business can promote enterprise innovation. The results of the further research indicate that the intimate and clean relationship between politics and business will have different impacts on corporate innovations, if the enterprises have different nature of property rights and belong to different industry. The intimate and clean relationship between politics and business can promote corporate innovation through the four mechanisms, i.e., increasing corporate bank loans, government subsidies, tax incentives and reducing rent-seeking costs. The research conclusions provide a new idea for promoting enterprise innovation.