Table of Content

15 July 2019, Volume 0 Issue 07

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Multi-Sectorial Economy, Heterogeneous Market Structure and Monetary Policy: A DSGE Model with Service Sector

CHEN Li-feng

2019, 0(07):  1828. 

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A Study of the Consumption Structure Upgrading in Core Cities of China’s Three Metropolitan Areas

SUN Jiu-wen, LI Cheng-zhang

2019, 0(07):  1829. 

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By employing the extended linear expenditure system (ELES) model, this paper investigates the consumption structure changes in the core cities of China’s three metropolitan areas, i.e., Beijing, Shanghai and Guangzhou, and conducts a comparative analysis from the three aspects of marginal propensity to consume, income elasticity of demand and price elasticity of demand. The findings show that the living standards of the urban residents in the core cities of the three metropolitan areas have been improved year by year, on the whole it has passed the basic stage with survival consumption as primary consumption, and entered the stage of paying more attention to consumption quality, which gives priority to developmental consumption and increases the proportion of hedonic consumption. During the process, the regional integration has driven the optimization and upgrading of consumption structure in the core cities of the metropolitan areas, the different functional positioning of core cities in different metropolitan areas will make the process have their own characteristics.

A Study of the Fiscal and Taxation Policies Supporting the Commercialization of Research Findings

WANG Qiao1, HUANG Yao-ni1, ZHANG Dong-sheng2

2019, 0(07):  1830. 

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The commercialization of research findings has obvious technology spillover effects; during the process of commercialization of research findings, there exist positive externalities of varying degrees, so relying solely on the market mechanism will lead to production distortion and lower efficiency of market resources allocation to a certain extent. Therefore, it is essential for the government to play a role of guiding and supporting through the corresponding capital investment and preferential policies. After four decades of reform and opening up, the commercialization of scientific and technological achievements is playing an increasingly prominent role in promoting innovation-driven development and economic development. However, from the perspective of the actual situation, there are still some problems in the commercialization of scientific and technological achievements in China, the root cause of which is not only the problems in the policies of scientific and technological development and the management mode itself, but also the inadaptability and mismatch of fiscal and taxation policies. At this stage, the government should promote the commercialization of research findings from the macroscopic angle, not only giving direct fund support through fiscal policies, but also further implementing the preferential tax policies for scientific research entities, in particular, it should further implement the various measures for the small, medium and micro technology-based enterprises in the new round of tax cuts and fee reductions policies, and reduce the comprehensive costs of the commercialization of scientific and technological achievements through the financial and other supporting measures, so as to strengthen the realistic impetus for the commercialization of scientific and technological achievements.

A Study of the Rural Residents’ Willingness to Participate in Public Goods Supply in the Context of Rural Revitalization: On the Role of Disaster Experience, Self-Efficacy and Value Orientation

ZHOU Chun-xiao, YAN Feng-xian

2019, 0(07):  1831. 

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Rural revitalization is a major strategy to solve the problems of agriculture, rural areas and farmers. This paper tries to analyze the factors affecting the willingness of rural residents to participate in the supply of public goods for disaster reduction and the mechanism of action, this will be reduction and promote the smooth implementation of the strategy of rural revitalization. Based on this,?this paper constructs a moderating intermediary effect model to analyze the questionnaire survey data from 889 farmers. The results show that the disaster experience has a significant positive effect on the rural residents’ willingness to participate in disaster reduction public goods supply, that the self-efficacy can have a capture effect in the positive effect of disaster experience on the willingness to participate in disaster reduction public goods supply, and that the value orientation can play a moderating role in the positive effect of the self-efficacy of rural residents on their willingness to participate in disaster reduction public goods supply. To compare the individuals with collective value orientation to those with individualist value orientation, the impact of self-efficacy on the participation of public goods supply in disaster reduction is weaker and smoother. Therefore, in order to stimulate rural residents’ willingness to participate in the supply of disaster reduction public goods, it is necessary to pay more attention to the selection of publicity contents of disaster prevention, formulate scientific and reasonable principles for the participation, and pay close attention to the correct guidance of rural residents’ values.

Private Capital Shares and Bank Performance Improvement: Empirical Evidences Based on City Commercial Banks

HE Mei-ling, HONG Zheng

2019, 0(07):  1832. 

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Under the dual drive of policy encouragement and supplementary capital demand, the introduction of private capital has become the main way for China’s urban commercial banks to reform their equity and increase capital and shares. Based on the data of city commercial banks from 2007 to 2016, this paper analyzes the impact of private capital investment on the operational performance of city commercial banks. The findings show that when the final controller of the city commercial bank is the government, the private capital investment (increasing the private shareholding ratio or the number of major private shareholders) can improve its operative performance. While the heterogeneity study of private shareholders shows that large private shareholders can play an important role in improving the performance of city commercial banks, the introduction of“sand-like”private minority shareholders cannot help the improvement of the performance of city commercial banks; compared with private shareholders from other places, the local private shareholders have a more positive effect on the operational performance of the city commercial banks; compared to the private shareholders with short-term holdings, the private shareholders with long-term shareholdings have a greater positive impact on the operative performance of the city commercial banks. Therefore, the bank equity reform should not just introduce private capitals, more importantly, it should introduce high-quality private capitals, so as to give a full play to the private capitals in the supervision and governance.

Can Financial Efficiency Smooth Economic Fluctuation? An Empirical Study Based on the Panel Data from 61 Countries

YUAN Shen-guo1, ZHANG Zhen-hua2

2019, 0(07):  1833. 

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Based on the panel data of 61 countries from 1981 to 2014 and employing the fixed effect panel model and the TSLS regression method, this paper conducts an empirical study on whether financial efficiency can restrain economic fluctuation and smooth the economic fluctuation in financial openness. The findings show that the financial efficiency has a certain restraining effect on economic fluctuation, especially has a significant restraining effect on the economic fluctuation in countries with middle and higher income, and the improvement of the financial efficiency can significantly smooth the economic fluctuations in the financial openness of these countries. However, the financial efficiency of the countries with lower and middle income has no obvious restraining effect on economic fluctuations, nor has it smoothed the economic fluctuations in the financial openness of these countries. Therefore, while expanding the financial openness, it is necessary to improve the capital formation rate, further promote the reform of the financial institutions, speed up the liquidity of funds in the capital markets, and improve both the efficiency of financial institutions and the efficiency of financial markets, all of these can help the steady growth of the economy.

Officials Exchanges and Reasonable Transfer of Control Rightsof State-Owned Enterprises

DI Ling-yu, BU Dan-lu

2019, 0(07):  1834. 

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The official exchange system has been established as an important arrangement of China’s political system, but can it help to implement the mixed ownership reform in order to realize the effective governance of state-owned enterprises? By selecting 478 state-owned enterprises with change of control rights in the period of 2004-2016 as research samples, this paper conducts an empirical analysis of the influence of the officials exchange system on the probability of transfer of control rights of inefficient state-owned enterprises and the economic consequences. The findings show that the official exchanges can significantly increase the probability of the transfer of control rights of inefficient state-owned enterprises, which is verified when different types of exchanging officials are distinguished. During the exchange period of officials, if the inefficient state-owned enterprises have realized the transfer of control rights, their operational performance can be significantly improved, thus the goal of effective governance can be achieved. The results of the mechanism analysis show that before the changing of control rights of the inefficient state-owned enterprises, if the provincial Party secretary at the location of the enterprise holds the term of office longer, the probability of the transfer of control rights will be greater after the exchanged official takes office. This shows that the exchange of officials helps to break the“network of relations”between the enterprises and local governments, and it is conducive to the implementation of mixed ownership reform.

Monetary Policy, Managerial Overconfidence and M&A Performance

XU Yu-jing1, HU Jun2

2019, 0(07):  1835. 

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Managers are the intermediary factors for enterprises to perceive changes in the external environment, and also the links between the internal and external information and resources when enterprises are resetting. Taking the M&A events of listed companies in Shanghai and Shenzhen stock exchanges from 2005 to 2015 as samples, this paper investigates the impact of macro-monetary policy and managers’ overconfidence on the performance of corporate mergers and acquisitions from the perspective of the interaction between managers’ irrational characteristics and the external economic environment based on the behavioral finance theory. The findings show that the situation of monetary policy can significantly affect the M&A performance of enterprises. When the monetary policy is relatively loose, corporate M&A performance is poor; at the same time, managers’ overconfidence will enhance the negative impact of monetary policy on M&A performance. Further analysis shows that credit channel is an important mechanism for monetary policy to affect the M&A performance. The adjustment effects of managerial overconfidence on the relationship between monetary policy and M&A performance are different due to the difference between corporate characteristics and external governance mechanism, which is mainly reflected in non-state-owned enterprises and non-competitive enterprises.

Genetic Distance and China’s OFDI: The Importance of Friendly Communication

SU Li, HUANG Xin-fei

2019, 0(07):  1836. 

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Genetic distance refers to the time when people of two nationalities traced back to their nearest common ancestors. The longer the genetic distance is, the greater the contractual cost of investment increases, thus affecting the smooth development of outward foreign direct investment. Based on the panel data of China’s 104 economic entities from 2003 to 2016, this paper employs the instrumental variable method to analyze the impact of genetic distance on the scale and location of China’s OFDI and its mechanism. The empirical results show that, generally speaking, genetic distance has a significant inhibitory effect on the scale of China’s OFDI. In the lower genetic distance group, the genetic distance can significantly inhibit the scale of investment; while in the higher genetic distance group, the genetic distance turns to a positive impact on China’s OFDI. China’s investment in the “Belt and Road” economic entities is negatively affected by the genetic distance, while the investment in the none “Belt and Road” economic entities is positively affected. The friendly city communication can change the inhibitory effect of genetic distance on investment.

Can Public Environmental Participation Alleviate Structural Unemployment? An Analysis Based on the Panel Threshold Model

JIN Da, SHEN Hong-liang

2019, 0(07):  1837. 

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In order to avoid the problems of information asymmetry and rent-seeking in environmental governance, it is necessary to encourage the public to fully participate in environmental ecological construction. Based on the panel data of 30 provinces and cities in China from 2007 to 2016, this paper divides the public environmental participation into three dimensions, i.e., publicity, direct petition letters and indirect proposals, to study the non-linear relationship between public environmental participation and employment structure with the threshold panel model. The results show that the environment publicity and environment petition letters and visits have threshold effects on employment industry structure and employment skill structure. There is a threshold effect on the industrial structure of employment in the environment category of the NPC Recommendations and CPPCC Proposals, while there is no threshold effect on the skill structure of employment. The public participation in the environment has optimized the employment structure and alleviated structural unemployment.

Undertaking Universal Responsibilities or Paying Attention to One’s Own Moral Uplift: Major Shareholders’ Pledge of Stock Rights and Charitable Donation

FU Yu-yuan, YUAN Ze-ming

2019, 0(07):  1838. 

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Will the pledge of stock rights of the major shareholders raise or lower the level of donations of the enterprises? This is a competitive proposition. Taking the 2009-2016 China’s A-share listed companies as research samples, this paper investigates the impact of the major shareholders’ pledge of stock rights on charitable donations. The findings show that the major shareholders’ pledge of stock rights has a positive effect on corporate charitable donations, and the scale and frequency of pledges are significantly and positively correlated with the level of donations. The findings of further research indicate that the agency conflict between major shareholders and small and medium shareholders has weakened the positive impact of major shareholders’ equity pledge on charitable donations, that the information transparency will enhance the positive impact of major shareholders’ equity pledge on charitable donations, and that the litigation risks the enterprises are faced with will weaken the promotion effect of the major shareholders’ equity pledges on charitable donations. These conclusions have important reference value for the investors, regulatory authorities and listed companies.

Executive Incentives, Accounting Conservatism and Investment Efficiency

WANG Gui-hua1, PENG Jian-yu2

2019, 0(07):  1839. 

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Taking the A-share listed companies from 1996 to 2016 as the research object, this paper conducts an empirical analysis of the relationship between accounting conservatism and investment efficiency, and the adjustment effect of executive incentives on accounting conservatism and investment efficiency. The findings show that accounting conservatism can inhibit excessive investment, alleviate under-investment and improve investment efficiency, and that executive monetary compensation incentives can enhance the inhibition effect of accounting conservatism on over-investment, while executive equity incentives will weaken the inhibition effect of accounting conservatism on over-investment. Further research finds that the incentives of executives’ monetary compensation in private enterprises will enhance the restraining effect of accounting conservatism on over-investment, while the executive equity incentives of state-owned enterprises will weaken the inhibition of accounting conservatism on over-investment. In companies with lower levels of accounting conservatism, both the executive monetary compensation incentives and executive equity incentives can significantly inhibit over-investment.

The Combing and Summarization of the Music Economy in the Ancient Jiangnan Area: A Review of The History of Jiangnan Music Economy

ZOU Ru-yuan

2019, 0(07):  1840. 

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