Table of Content

15 August 2018, Volume 0 Issue 08

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Investor Pricing Effect of other Comprehensive Income: From the Perspective of Corporate Information Environment and Investor’s Cognitive Ability

LI Shao-xuan1, XIAO Hong1, ZHANG Rui-li2

2018, 0(08):  87. 

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By making use of the other comprehensive income data of Chinese listed companies from 2009 to 2015, this paper conducts an empirical test on the investor pricing effect of other comprehensive income. The findings show that other comprehensive income has the investor pricing effect, and the pricing effect has strong dependence on the information environment and the investor’s cognitive ability. In addition, the usefulness of investment decisions of other comprehensive income mainly comes from the two specific components, i.e., the available-for-sale financial assets and the effectively hedged cash flows.

IPO Time Consuming, Choice of Earnings Management Modes and Economic Consequences

ZHANG Yan

2018, 0(08):  88. 

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Taking the IPO companies of China’s A-share markets from April 2000 to 2012 as a sample, this paper conducts an empirical test of the impact of the company’s IPO time-consumption on the choice of the two different earnings management methods. The results show that after the IPO procedure is started, the degree of the accrued earnings management manipulated by the company will gradually decline over time, and the degree of manipulating the real earnings management will gradually increase. Further research finds that companies with longer-time IPOs have a relatively higher initial under-pricing rate, and their operation performance will be relatively poorer after listing. The conclusions of this paper can provide some reference for optimizing and adjusting the IPO issuing system.

How Does the Choice of Preferential Policy Affect Enterprise Performance? A Quasi-Natural Experiment with the Case of Economic and Technological Development Zone

HU Hao-ran

2018, 0(08):  89. 

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Taking the samples of the economic and technological development zones as an example, with the data of China’s industrial enterprises from 1998 to 2007, this paper makes use of the Probit model and the difference-in-difference method (DID) to study whether the policy of establishing ETDZs is a preferential choice and its impact on the enterprise performance when the policy is come into effect. The findings show that: (1) the policy of establishing ETDZs is a preferential choice, to establish the development zones in the areas with higher level of industrial development has a larger probability, and such policy can improve the productivity of the local enterprises; (2) as for the enterprises with advantages in their development level and the enterprises with comparative disadvantages, the promotion effect of the policy on the productivity of the advantage enterprises is greater; (3) when the policy is implemented, this kind of comparative advantage will go with the changes of time, showing a tendency of upward first then downward, that is to present a general feature of inverted “V”. The inferior enterprises can bring the latter-development advantage into play with the help of the spillover effect and the learning effect of the policy, so as to gradually realize their catching up with the advantage enterprises.

An Analysis of the Effectiveness of Automobile Purchase Restriction Policy and the Spillover Effects: Based on the Data of Car License Applications

FENG Cai

2018, 0(08):  90. 

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By making use of the data of car license applications by China’s prefecture-level administrative units from January 2010 to December 2015, this paper tries to check whether there are retaliatory license-plate lotteries resulted from restricted demands in the car purchasing and estimate the impact of various car purchasing restriction policies on the amount of cars applying for license plate. In addition, its spillover effects are quantified. By using the DID method to eliminate the interference factors, such as the urban internal characteristics, the local purchase intentions and so on, and adding control variables to rule out such impacts as economic development level, transportation facility construction and so on, it is found that under the same conditions, the lottery policy and the auction policy can both effectively control the amount of cars applying for license plate. Meanwhile, the effect of the auction policy to control the amount of cars is better than that of the lottery policy. However, there are significant spillover effects in both the lottery policy and the auction policy, and the spillover effect of the lottery policy is much greater than that of the auction policy.

Local Government Debt and Corporate Innovation: An Empirical Study based on Provincial Panel Data and No. 43 Document of the State Council

ZHU Chen-he1, YANG Zheng2, CHENG Chen3

2018, 0(08):  91. 

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The findings of this study, which makes use of the provincial panel data from 2011 to 2016 and the cross samples of the data of listed companies, show that local government debt leads to a decline in corporate innovation, which is reflected in the reduced amount of patent applications and patent grants in regions with severe problems of local government debt. The testing result of the regulatory effect shows that non-state-owned enterprises have received stronger innovation inhibition in the regions with serious local debt problems, that the political connections of some non-state-owned enterprises have mitigated the damage of local debt to the enterprise innovations, and that the enterprise innovation of the industries with higher levels of external financing dependence is negatively and significantly affected by the local debts. In accordance with the No.43 document of the State Council, this paper constructs a DID model to carry out a test, the result shows that the governance of local debts can play a role in improving enterprise innovations. The result of an examination of the mechanisms indicates that the governance of local debts has improved the efficiency of credit allocation and reduced the negative impact of financing constrain on enterprise innovation.

A Study of Dynamic Adjustment Path of Corporate Governance Structure under Mixed Ownership Reform

YE Ling1, WANG Ya-xing2

2018, 0(08):  92. 

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The mixed ownership reform is an important breakthrough of the ownership reform of state-owned enterprises, which is helpful for state-owned enterprises to improve the property rights system, re-construct the corporate governance mechanisms, and improve the operating efficiencies. Focusing on the key link of the mixed ownership reform-effectively balanced corporate governance structure, this paper discusses the adjustment path for corporate governance structure from the four dimensions, i.e., the ownership structure, the board of directors, the supervisory board and the management. It mainly explores an effective path through which the Party committee of a company can participate in the company’s important decision-makings and carry out the governance with the three new boards. It also puts forward some related measures to improve the supervision efficiency of the independent directors and the supervisory board and explores the incentive and restraint system for the market-oriented management, so as to establish a better governance structure to promote the development of the economic enterprises with mixed-ownership. Finally this paper offers some new ideas and suggestions for the mixed ownership reform.

Are International Stock Investors Keeping a Watchful Eye onChina’s Macroeconomic Information?

Nishimura Yusaku, ZHAO Yang

2018, 0(08):  93. 

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Based on the realized volatility rate and the ARFIMA model, this paper investigates the transmission mechanism of China’s macroeconomic information (the leading indicators, the coincident indicators and the lagging indicators) to international investors from the perspective of stock market volatility and the release of macroeconomic information. The empirical results suggest that the volatility of US stock markets is obviously increased at the date of the release of China’s macroeconomic information, so it is really affected; and the leading indicators are significantly impacting US stock markets. When the expected deviation is introduced, it is found that the international investors make greater response to the negative deviation information of the leading indicators. The release of China’s macroeconomic information does have a significant effect on US stock market volatility, which is significant for us to further explore the function of macroeconomic information and the transmission mechanism of stock market volatility.

Credit Imbalance, Business Efficiency Heterogeneity and Formation of Zombie Enterprises

LV Jiang-lin, CHEN Jian-fu

2018, 0(08):  94. 

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The formation of zombie enterprises is closely related to credit imbalance and enterprise efficiency heterogeneity. Through theoretically analyzing the internal mechanism of the formation of zombie enterprises and making use of the data of China Industrial Enterprise Database, this paper conducts an empirical analysis of the relationship between the formation of zombie enterprises, the credit imbalance and the heterogeneity of enterprise efficiency with a Logit model. The findings show that the probability of formation of Chinese zombie enterprises is positively related to the degree of credit imbalance and the heterogeneity of enterprise efficiency. If Chinese governments at all levels and the relevant policymakers can identify the potential or forthcoming zombie enterprises earlier from the two aspects of the credit imbalances and the heterogeneity of enterprise efficiency during the economic and financial operation, it will be of positive significance for China to effectively reduce the disposal cost on the zombie enterprises. At the same time, China must speed up the reform of the financial system, reduce the financial friction and promote the flow of funds into the high efficiency enterprises. The enterprises with lower production efficiency should also try to practice the system and technological innovation, constantly improve the total factor productivity, reduce the differences in the average total productivity among the industries and regions, and strive to improve the core competitiveness，so as to generally reduce the probability of the occurrence of zombie enterprises in China.

A Study of the Factors Influencing Provincial PPP Projects and Risk Measurement

XIAO Jian-hua

2018, 0(08):  95. 

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PPP Model can play a better role in promoting China’s economic development and improving people’s livelihood. However, during the development process, PPP projects are faced with greater risks. Especially each province has its own concerns during the process of promoting PPP projects, and each has different risks. By constructing a PPP project risk index system, this paper studies the risk factors influencing provincial PPP projects with the method of analytic hierarchy process. The results show that the economic operating environment is an important cause of the risks for PPP projects; its weight is up to 52.78%. On the basis of determining the weight of the index, the efficiency coefficient method is used to grade the index, and the linear comprehensive evaluation model is used to calculate the risk assessment comprehensive value of all the provinces in China. The empirical results show that the risk level of PPP projects in Beijing, Shanghai and Guangdong is relatively lower, but it is relatively higher in other 6 provinces such as Guizhou and Yunnan. Therefore, in order to guard against the PPP project risks, some improvements should be made in the future, such as preventing technical risks, preventing and punishing corruption, improving the laws and regulations on PPP projects, rationalizing market profits, etc..

On the Historical Orientation of the General Relation Domain in China’s Supply-Side Structural Reform

LIU Ai-wen

2018, 0(08):  96. 

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How to correctly understand China’s supply-side structural reform bears a great significance to the continuous promotion of the socialist cause with Chinese characteristics. From the perspective of the dialectical unification between the“two-point view”and the“key-point view”, China’s supply-side structural reform is general-relationship oriented, which not only gives an overall consideration to the relationships between productivity and productive relations, and between government and market, but also highlights the key points, so as to realize the sustainable development of social productive forces. Productivity has such characteristics as the embedment of the economic forms, the process of reform and the ever changing general relationship of economic forms along with the changing of the economic situations both at home and abroad, therefore, the general relationship which restrict the development of productive forces has a strong historical orientation. The historical orientation of the general relationship domain renders China’s supply-side structural reform with both generality and particularity. The neoliberal economists, ignoring the current world and national situations that China is faced with, are trying to copy the ideas of the Western supply-side schools, which will terribly mislead China’s supply-side structural reform.

A Research on the Spatial Correlation and Growth Factors of China’s Regional Tax Revenues

LIU Xiang, LI Hong-xia

2018, 0(08):  97. 

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By constructing a spatial panel model, this paper conducts an empirical analysis of the affecting factors on the growth of China’s regional tax revenues. The findings show that China’s local tax revenues are obviously leveled. The distribution characteristics conform to the level of economic development. The local tax revenues are affected by inter-governmental strategic behaviors, the spatial correlation is significant, but there are differences in the different tax categories due to the patterns of strategic behaviors. The local tax revenues are subject to the impacts of such factors as investments, consumptions, importations and exportations, savings, industrial structures and headquarters economy, etc., but the direction and degree of each influencing factor is somewhat different among the different tax categories. In order to achieve the equal access to basic public services, narrow the gap between inter-regional economies and tax revenues, and to promote the coordinated regional economic developments, various measures should be taken, mainly including establishing the tax cooperation mechanism among local governments, continuing the reform of streamlining the administration, delegating power, strengthening regulations and improving services, and further deepening the tax reform.

A Study of the Impacts and Mechanisms of Corruption on Subjective Well-Being of Chinese Residents

LIN Xiang-sen, ZHOU Yu-wen

2018, 0(08):  98. 

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By making use of the 2015 CGSS survey data, this paper studies the impact of corruption perception on individual subjective well-being and its mechanism of action. The findings show that: (1) corruption perception has a negative impact on the subjective well-being of residents; when corruption perception reaches the medium level of corruption, individual’s happiness will be significantly reduced; (2) the regression result of the mediation effect model shows that the corruption perception can significantly impact residents’ subjective well-being through affecting the three paths of social security satisfaction, government trust, and the feeling of unfair income distribution, of which the impact on social security satisfaction is the most important; (3) there are heterogeneous in the impacts of these three mechanisms for different social strata: the impact on the subjective well-being of lower-level social groups is significant, while on the happiness of middle and higher-level social groups is not significant enough. The above conclusions indicate that the government should continue fighting against corruption and focus on strengthening anti-corruption in areas related to social security services, which can help to improve the happiness of our residents.

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

JIANG Yao-ming1, ZHANG Lei-yun2

2018, 0(08):  1875. 

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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.