Table of Content

15 August 2019, Volume 0 Issue 08

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Labor Income Share and Inequality: Do They Affect Each Other Interactively?

TANG Can-qing1, DONG Zhi-qiang2

2019, 0(08):  1865. 

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Labor income share and income inequality may have interactive effects, which has been rarely studied yet. This paper employs a two-equation vector autoregressive model and makes use of the provincial panel data in China from 1998 to 2016 to investigate the interaction between the two. The results show that although the increase in labor income share will increase inequality in the same year, the direction of the influence in the following year will reverse greatly, and the overall effect of reducing inequality can be seen; while the impact of income inequality on labor income share is not significant. The result of Granger test shows that labor income share is the Granger cause for income inequality; however, the income inequality is not the Granger cause for labor income share. This means that changes in income inequality over the past two decades have had no significant impact on changes in the share of labor income, however, increasing the share of labor income can help to lessen income inequality.

The Impact of Incomplete Technical Information on the Efficiency of Technological Innovation: Based on the Different Factor Allocation Methods

WANG Bi-hao1, ZHANG Yu2

2019, 0(08):  1866. 

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Incomplete technical information consists of three parts: autoregressive disturbance term, endogenous factors and exogenous factors. Under the two different elemental allocation methods of simultaneous selection and one after another selection of R&D funding and R&D personnel input, this paper conducts a comparative study of differentiated impact effect of incomplete technical information on technological innovation efficiency and output levels. Based on the measurement results of the date of 695 listed companies in three industries, this kind of impact effect is analyzed in detail and verified. The research results show that the incomplete technical information of the simultaneous selection method is not fully absorbed, the factor substitution coefficient is low, and the technological innovation efficiency and output level bear a significant impact. While there is larger factor allocation space with the one after another selection method, the factor substitution and incomplete technical information have strong adaptability, the configuration ratio is gradually optimized, and the impact effect is gentle. The correlation between incomplete technical information and its error and R&D fund input and output reflects the degree of error variation.

Comprehensive Evaluation of China’s Taxation Operation Efficiency and Analysis of the Convergence

CAI Qian, LI Hua

2019, 0(08):  1867. 

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Based on the connotation of tax function and the evaluation criteria of tax operation efficiency, this paper constructs an evaluation index system of tax operation efficiency in line with China’s national conditions and conducts index calculation and convergence analysis by making use of the relevant data of China’s 31 provinces from 2007 to 2016. The findings show that, as for the tax operational efficiency index, although the development speed of tax operational efficiency in different regions is different, it shows an upward trend relatively; as for the regional distribution, taking the tax operational efficiency in 2016 as an example, the tax operation efficiency distribution is similar to the division of Eastern, Central and Western regions in China. In terms of regional disparity, the tax operation efficiency of the whole country and the Eastern region shows the trend of convergence first and then divergence, the western region tends to converge in fluctuation, and there is no obvious convergence or divergence in the central region. When the four factors such as education are introduced, it is found that there is conditional convergence among the regions. Therefore, in order to improve the tax operation efficiency and narrow the regional differences, it is suggested to keep the economy running smoothly, strengthen the residents’ education and tax publicity, promote high-level and high quality opening-up, perfect the policy guidance, and accelerate population and talent gathering.

Contract Cost, Incentive Effect and Logic of Inter-Governmental Tax Division

SHI Zi-yin

2019, 0(08):  1868. 

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The contract theory shows that if there are large differences in regional resource endowment and economic development, these regions should have different tax retention rates, and this kind of setting will be efficient. Many kinds of contracts can achieve this differential retention rate, but we need to choose the appropriate contract base on weighing the contract cost and incentive effect according to net revenue maximization. In practice, China has two kinds of contracts, one is directly realizing local tax retention rate differential by setting different tax sharing ratios, the other is indirectly realizing local tax retention rate differential by different scale of transfer payment. In comparison, the tax sharing system is an appropriate form which can balance the cost and incentive effect of tax division so as to realize differential local tax retention rates. But there are some shortcomings in the current share system contract, it is necessary to realize the goal of net revenue maximization of inter-governmental tax division contracts in two ways: one is to reduce the proportion of local expenditure responsibility in order to reduce the scale of transfer payments, the other is to increase the fixed tax items of local governments in order to reduce the proportion of value-added tax sharing.

The Dynamic Economic Growth Threshold Effect of Financial Development on China’s Energy Consumption

LIU Xiao-rui, SUN Tao

2019, 0(08):  1869. 

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Taking China’s 30 provinces as the research subjects and based on the consideration of the habit effect of energy consumption, this paper sets up a dynamic panel threshold model and takes the economic growth level as the threshold variable to investigate the dynamic economic growth threshold effect of financial development on per capita energy consumption. The results show that though financial development can significantly inhibit per capita energy consumption, when the level of economic growth is higher than the threshold value, the inhibitory effect of financial development on per capita energy consumption will become weaker. The inhibitory effect of financial development on per capita energy consumption presents a weaken trend, compared with the central and western regions, the financial development in the eastern region has a weaker effect on the per capita energy consumption. Within the threshold range of lower economic growth level, the financial development can significantly promote per capita energy consumption through economic growth channels, but the channels of technological innovation are not smooth. However, when the level of economic growth exceeds the threshold value, financial development can significantly curb per capita energy consumption through economic growth channels and technological innovation channels.

Banking Structure and Local Banks’ Deposit Interest Rates: A Research Based on China’s Deposit Interest Rate Liberalization

FENG Chuan-qi

2019, 0(08):  1870. 

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Based on the data of 88 local banks in China from 2011 to 2017, this paper explores the impact of banking structure on deposit interest rates of local banks. The research shows that the banking structure has a significant impact on the local banks’ deposit interest rates. In terms of reference model, the higher the market concentration, the higher the local banks’ average deposit interest rates; in terms of product dimension, the increase of market concentration will significantly increase the interest rate of time deposit, but it has nothing to do with the interest rate of demand deposit; in terms of market boundary, the increase of market concentration at provincial level can significantly promote the average deposit interest rate, while no significant effect on the market concentration at prefecture?city?level; in terms of strategy groups, the increase of market concentration of local banks has significantly increased local banks’ average deposit interest rates, while no significant influence is found on the market concentration of non-local banks; in terms of time dimension, the influence of market concentration on local banks’ average deposit interest rate is gradually strengthened year by year. With the gradual abolition of the dual-track interest rate system and further opening up of the financial industry, local banks need to improve the deposit pricing mechanism as soon as possible, so as to prevent the risk of deposit interest rates.

A Research on Effectiveness of Paradoxical Leader Behavior from the Relational Perspective

JIANG Ping1,2, ZHANG Li-hua1, QIN Ge1

2019, 0(08):  1871. 

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As a newly developed native leadership theory, the paradoxical leader behavior (PLB) is relatively short of empirical studies. Based on the social exchange theory, this study probes into the mechanism and boundary condition of the influence of PLB on employee’ s attitude and performance through the data of matching questionnaire investigations collected from 433 persons at the two time-points of direct leaders and their subordinates. The results show that PLB has obviously positive effects on employees’ job satisfaction and work performance and that leader member exchange has played a mediating role in it. The employee’s Zhongyong value orientation has a positive adjusting effect on the impact of PLB on the leader member exchange, at the same time, it can adjust the indirect effect of leader member exchange between PLB and employee’s job satisfaction and work performance, i.e., the higher the level of employee’s Zhongyong values orientation, the stronger the mediating role of leader member exchange.

Social Crowding and Electronic Word of Mouth: The Moderating Effect Based on Overlapping Situation

GUO Yu-lang1, ZHANG Pan2

2019, 0(08):  1872. 

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The degree of crowding in shopping environment has an important impact on consumer behavior. With the method of scenario experiments, this paper examines the impact of social crowding on consumers’ willingness to share electronic word-of-mouth and its mechanism and boundary conditions. The results show that social crowding has a significantly positive impact on consumers’ willingness to share electronic word-of-mouth, that the immersion plays a mediating role in it, and that the degree of overlapping situation can adjust the strength of the relationship between social crowding and consumers’ willingness to share electronic word-of-mouth: when the degree of overlapping situation is lower, the impact of social crowding on the willingness to share electronic word-of-mouth is significant; when the degree of overlapping situation is higher, the impact of social crowding on the willingness to share digital word-of-mouth is not significant.

How Does the Depth of Services Trade Provisions Influence China’s Added Value of Exports？

TONG Wei-wei

2019, 0(08):  1873. 

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Based on the Regional Trade Agreement database and other data sources, this paper investigates the depth of services trade provisions in China’s main free trade agreements and analyzes its impact on the domestic and foreign added value in China’s exports of service industry and manufacturing industry. The major results show that the depth of services trade provisions restrains the domestic added value in the exports of service industry, and the restraining effect exists in the both exports of the intermediate service and the final service. As for the foreign value added effect, the depth of services trade provisions has expanded the foreign added value from China’s FTA partners in the exports of service trade and reduced those added value from the third countries, which indicates that China’s services trade provisions might have caused the trade diversion from non-partner to partner countries. The depth of services trade provisions has significantly promoted the domestic and foreign added value in the exports of manufacturing industry, especially the exports of those final goods manufacturing industry. It is noteworthy that the depth of services trade provisions has also the promotion effect on the foreign added value from the third countries in the exports of China’s manufacturing industry, which indicates that it has the spillover effect in the added values of trade creation.

The Degree of Participation in International Division of Labor of China’s Service Industry and the Position Measurement：From the Perspective of Global Value Chain

LUO Liang-qing, WEN Ting

2019, 0(08):  1874. 

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By selecting the value-added trade data of service industry in China, the United States, the United Kingdom, Japan and Germany from 2000 to 2011, this paper studies the degree of China’s service industries participating in the global division of value chain and the positions in international division of labor, then it explores the comparative advantage of service industry between China and the four trading partners. The findings show that the degree of China’s service industry participating in international division of labor is gradually deepening, but it is still at the downstream position of global value chain. On the whole, China’s service industry has comparative advantages over Japan and Germany, while it has comparative disadvantages over Britain, as for United States, China’s service industry has changed from slightly superior to slightly inferior. For different service industries, changes in the positions of international division of labor and the comparative advantages of bilateral trade are different.

QFII Network Relationships and Company Value: An Empirical Analysis Based on China’s A-Share Listed Companies

QIAO Lin, ZHU Wei, QI Hao-dong

2019, 0(08):  1876. 

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Based on the social network theory and taking the QFII holding the shares of China’s A-share listed companies from 2012 to 2017 as the sample, this paper studies the impact of information effect and governance effect of QFII network relationship on corporate value. It is found that within the QFII investment quota allowed by China’s legal system, the QFII network relationship can significantly improve the company value. And this relationship is more significant in QFII long-term holding companies and at the areas with higher level of investor protection. Further research shows that the corporate information transparency and the corporate internal governance mechanism can play an intermediary role between QFII network relationship and company value. This research conclusion indicates that the moderate increase of QFII introduction quantity is conducive to improving the information environment and the corporate governance, thus it is conducive to the improvement of corporate value.

Theoretical Framework and Implementation Strategy for the Improvement of China’s Public Service Quality: Review of Public Service Quality Management: Theory, Method and Application

SHU Fan

2019, 0(08):  1877. 

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Does Auditor-Client Compatibility Affect Audit Fees and Audit Quality?

JIANG Yao-ming1, ZHANG Lei-yun2

2019, 0(08):  1891. 

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Based on the textual information of“management discussion and analysis”in the annual reports of 6909 A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2017, this paper calculates the cosine similarity among the clients in the same industry at the same year in the same audit firm. Then it takes the cosine similarity as the proxy variable of auditor-client compatibility to analyze the impact of auditor-client compatibility on audit fees and audit quality. The findings show that auditor-client compatibility is positively correlated with audit fees and audit quality; and auditor-client compatibility of domestic 10 major firms is also positively correlated with audit fees and audit quality. The conclusion of the study provides a path for China’s domestic accounting firms to become “stronger” by improving the auditor-client compatibility.