Table of Content

15 September 2015, Volume 0 Issue 09

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Substitution Effect of Internal Control for Government Regulation Based on Accounting Conservatism

ZHAO Xing-mei

2015, 0(09):  518. 

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To substitute the external contractual regulation for the internal contractual governance as the internal-controlled government regulation will generate substitution effect for accounting conservatism and other external information regulation. The government regulation can effectively reduce the investors’ dependence on accounting conservatism, thus the accounting conservatism in government-regulated companies is significantly lower. The audit intervention can relieve agency conflicts and information demand conflicts, so the accounting conservatism in the government-regulated companies is significantly lowered. The state effect and regional effect also have substitution effect for accounting conservatism, but the internal-controlled government regulation will weaken the influence of these effects．

Choice of Financial Flexible Policies and R&D Investment: A Study Based on GEM Listed Companies

XU Ling1,2, FENG Qiao-gen1

2015, 0(09):  519. 

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On the basis of distinguishing the different policies of financial flexibility, by taking the heterogeneity of R&D investment as foothold, this thesis verifies the relationship between the GEM listed companies’ choice of financial flexible policies and the R&D investment. The results indicate that from an overall perspective, different financial flexible policies exert different influences, i.e., the combinational financial flexible policy has a maximum improvement on the R&D investment, the pure debt flexibility policy may restrain the R&D investment, whereas the pure cash flexible policy can play a dominant preventive role under the conditions of higher financial risks. Various financing flexible policies function dissimilarly between high-tech enterprises and non-high-tech enterprises, indicating that faced with future liquidity resources, there exists a game between the real investment and R&D investment, and the power of the game is different between these two kinds of enterprises. The different state policies that enterprises are faced will affect the functions and conditions of the financial flexible policies; therefore, when choosing the financial flexible policy, the macro factors should be taken into consideration.

Regional Trade Openness, Fiscal Expenditure Expansion and China’s Trade Balance Linkage

LIN Feng

2015, 0(09):  520. 

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Considering the differences of regional trade openness, this paper constructs a provincial panel threshold model and conducts an empirical test of the nonlinear comovement relation between China’s fiscal expenditure and trade balance. The results show that the impact of China’s fiscal expenditure on trade balance could present significant threshold characteristics due to the differences of regional trade openness. For such provinces with low trade openness, the impact of fiscal expenditure on trade balance is not significant, and then the Ricardian equivalence hypothesis is established. As for provinces with medium trade openness, fiscal expenditure and trade balance present the“double divergence”effect; the fiscal expenditure expansion could improve trade balance effectively. However, for provinces with higher trade openness, fiscal expenditure and trade balance have a“twin deficits”relation; the fiscal expenditure expansion would lead to worsening trade balance. It also shows that the threshold effects at each region are subject to the fiscal expenditure structure, the impact of transfer expenditure on trade balance is higher than purchase expenditure.

Factor Income Difference, Trade Division and “Comparative Profit Paradox”

LI Feng

2015, 0(09):  521. 

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From the perspective of factor income, we can also make a better explanation on the current international trade division. On the basis of establishing a theoretical analytical framework of factor income differences and trade division, this paper puts forward the comparative profit principle, namely one country or region is inclined to export more products with higher factor relative gains. Through the improvement on the gravity model of trade, it conducts an empirical test on the trade data of the main export countries. The result proves that most of the export countries are in line with the principle of comparative profits, while China has the “comparative profit paradox”. The main reason lies in the factor that most Chinese sectors are located at the downstream of global value chain, participating in the international division of labor more with the form of processing trade.

A Study of the Advance Sale Market for Perishable Goods and Its Risks

CHENG Yong-sheng

2015, 0(09):  522. 

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Taking sale on spot as the benchmark, this paper studies the advance sale market and its risks from the perspective of perishable goods retailers. Based on the benchmarking analysis of the sale on spot market, it analyzes the consumers’ behaviors both in the sale on spot market and in the advance market and examines the demands in these two markets. The results show that the risks of consumers’ purchase in advance will increase the uncertainty in the advance sale market, but it is harmless. It establishes a model of the profits of optimized advance sale prices and discusses the market risks brought about by decision failures resulted from inaccurate survey information. The numerical analysis shows that either sale on spot or advance sale has its advantages and disadvantages. It is beneficial for retailers to try to reduce consumers’ risk costs of their pre-ordered goods; this can not only help to raise the prices of advance sales, but also help to increase the sales volume. Further risk study indicates that sale on spot relies heavily on the accuracy of market prediction, while sale in advance is not subject to it and can mitigate all sorts of uncertain risks effectively.

Combinative Matching between Central Bank’s Communication and Actual Intervention Tool: Evidence from FED

SHI Huan-ping1, TAN Tian-jiao2

2015, 0(09):  523. 

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As a new and useful regulation tool, central bank communication (CBC) has been taken into the special monetary policy by many countries. Taking the Federal Reserve (FED) as the research sample, this paper studies and compares the two regulated effects with or without the combinative matching between central bank communication and actual intervention tool. The results show that there exists a cause-and-effect relationship between CBC, CPI and economic growth. Meanwhile, compared with the mismatching of actual intervention tool, in the context of the matching of CBC, the forward looking guide can more effectively lead economic subjects to forming rational expectation, and the degree of impact and the contribution rate of CPI and economic growth will be greater. China should take CBC as the normalized regulating means in its monetary policy, so as to realize the combinative matching with the actual intervention tools on the basis of the clarified implementation framework, range of action and transmission mechanism of CBC.

The Impacts of Control Mechanism in Strategic Alliance on Alliance Performance: from the Perspective of Boundary Dilemma

SHEN Hao1, XIE En1, WANG Dong2

2015, 0(09):  524. 

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In order to solve the problem of boundary dilemma in the strategic alliance, this paper firstly examines the impact of the control mechanism in the strategic alliance on the coordinative efficiency and speculative risks of the alliance, and then it tests the different impacts of coordinative efficiency and speculative risks on the performances of the alliance members. The empirical results indicate that the formal contract control can efficiently resolve the problem of speculative risks in the boundary dilemma, so as to improve the performances of the alliance members; whereas the informal social control including relation control and information control can efficiently solve the problem of coordinative efficiency in the boundary dilemma, so as to improve the performance of the alliance members. These findings can enrich and extend the present literatures in strategic alliance management and provide significant empirical evidences and theoretical supports to the strategic alliance members to resolve boundary dilemma and further enhance alliance cooperative performance.

Stock Price Synchronicity, Volatility Difference and Liquidity: An Empirical Study Based on Shanghai and Shenzhen Stock Markets

HAN Jin-xiao, WU Wei-xing

2015, 0(09):  525. 

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Stock price synchronicity can reflect the relative proportion of market information and heterogeneity information in the stock price volatility, while the volatility of stock prices can be decomposed into systematic volatility caused by market information and idiosyncratic volatility caused by heterogeneity information. Due to information asymmetry and other causes, the stock price volatility is significantly correlated with stock liquidity. Therefore, the stock price synchronicity which reflects the relative proportion of the market information should have some impact on the stock liquidity, and that impact should be consistent with the impact of systematic volatility of stock prices. Through the empirical analysis of the transaction data during 1994-2013 in Shanghai and Shenzhen Stock Exchanges, it is found that stock price synchronicity can really affect stock liquidity, i.e. the higher stock price synchronicity can improve the liquidity of individual shares; while the systematic volatility of stock prices is significantly and negatively correlated with the liquidity. The reason for this lies in the “Herd Effect”of Chinese investors and the underdeveloped derivative market which renders the stock market unable to hedge the systematic volatility.

Tax Contributions of China’s Three Industries and Policy Adjustment

XI Wei-qun

2015, 0(09):  526. 

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This paper applies such indexes as macro tax burden, tax elasticity and tax coordination index to calculate the tax contribution of China’s three industries. The results show that the second and third industries are the main tax bearer, and the third industry has the greatest tax contribution. Meanwhile, the eastern region is the main bearer of industrial tax burden, and has excess tax contribution, while the central and western regions depend more on the construction industry and the realty business than the eastern region. Therefore, we should perfect the agricultural tax system to promote the development of the primary industry, further standardize the turnover tax to lessen the tax burden of the third industry with value-added tax replacing business tax, and apply the corporate income tax policy to accelerate the readjustment of industrial structure in the central and western regions.

A Study of the Impact of Local Governments’ Financial Pressure on Corporate Philanthropic Activities

LU Hong-you, TAN Wei-jia

2015, 0(09):  527. 

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By introducing the reciprocal effect between the characteristics of local government’s financial pressure, the government-business relationship and the characteristics of financial pressure into the model of corporate philanthropic activities, this paper interprets the political factors underlining the corporate philanthropic activities from the perspective of the characteristics of local government’s financial pressure. The results show that in the regions where the local governments bear greater financial pressures (i.e. the degree of effort for collection is high while the level of public expenditure is low), the corporate philanthropic behaviors are more active. The state ownership can weaken the impact of local governments’ financial pressure on corporate donations. The political connection will make the enterprises more sensitive to the local governments’ financial pressure. Therefore, it is necessary to strengthen the independence of the public welfare organizations and to guide the individual’s donation, so as to reduce the degree of dependence of the local governments and the whole society on the corporate donation.

Aftermarket Monopoly: Cause, Efficiency and Policy Controversy Western Researches and Practice and China’s Policy Difficulties

WU Chang-nan

2015, 0(09):  528. 

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In the context of the present increasingly severe market competition on products, the aftermarket monopoly has become an important operation mode for many manufacturers. The researches on the aftermarket monopoly have been carried since early in the 1980s and 1990s in foreign countries, and abundant literatures have been produced. The major studies focus on the meaning of aftermarket, the causes of aftermarket monopoly, the motivation of aftermarket monopoly, the pricing of aftermarket monopoly, the efficiency of aftermarket monopoly, and the controversy over antitrust policies. Although China recently has carried out antitrust policy against the automotive aftermarket, no theoretic basis has been really found for the implementation of antitrust policy in the aftermarket. Therefore, there are certain theoretic and practical difficulties to be solved for the implementation of the aftermarket antitrust policy in China.

Advantage Agglomeration Oriented Economic Development Model

XIE An-shi1,2，YU Yong-da2

2015, 0(09):  529. 

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Different from the existing traditional economic growth theories, the theory of agglomeration advantages believes that the material resources, technological progress, human capital, labor division, industrial structures and the factors of institution and culture are the objects of the agglomeration advantages; the advantage agglomeration oriented mode of production is the core driving force of economic growth. Although the United States has been promoting the theory of comparative advantage for developing countries, if examining its development history from the founding of the United States to the time before the First World War, it can be seen that its economic development and catch-up process is the process of agglomeration advantages. In an open economic environment, by formulating and implementing the advantage agglomeration oriented economic development strategy, forming the advantage agglomeration oriented economic development model, and encouraging advantage agglomeration oriented economic behaviors, the backward countries will grow by leaps and bounds, so that they can accelerate the process of narrowing the gap between themselves and the advanced countries. Based on higher long-term growth rates, they can achieve their catch-up both in economic gross and in per capita income.