Table of Content

15 February 2015, Volume 0 Issue 02

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Can Internal Control Restrain Cost Stickiness Theoretical Analysis and Empirical Evidence from the Perspective of Information Theory

MU Shao-hong1; LI Qi-hang1; CHEN Han-wen2

2015, 0(02):  601. 

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On the basis of the fully combed domestic and overseas research literatures related to cost stickiness, this paper sets up a research framework based on information to conduct the study. The results show that cost stickiness is derived from dissymmetry and deficiency of corporate internal and external information, and thus it shows that internal control can inhibit cost stickiness. Then it sets up an econometric model based on this and makes use of the financial data of China’s A-share listed companies during 2007-2011 and the internal control index developed by Xiamen University to empirically test the influence of internal control on cost stickiness. The results reveal that the better the quality of internal control of one company, the lower the cost stickiness will be. After controlling the range of income changes or distinguishing the direction of cost changes, the above-mentioned result is still solid. Through further test of each index of the five elements?of?internal control?respectively, it is found that except the risk assessment index, the other high quality elements of internal control all have a significant?inhibitory effect on?cost stickiness.

Institutional Investors’ Heterogeneity, Accounting Conservatism and Investment Efficiency: Empirical Evidence from China’s Listed Companies

LI Zheng-guang1,2,

2015, 0(02):  602. 

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Taking China’s A-share listed companies from 2007 to 2012 as research samples, this paper tries to measure the accounting conservatism with the cumulative non-operating accrued profits and explores the influences of accounting conservatism on investment efficiency from the perspective of institutional investors’ heterogeneity. The findings show that the level of accounting conservatism is negatively correlated with overinvestment and positively correlated with underinvestment significantly. On the basis of dividing institutional investors into the transactional institutional investors and the stable institutional investors, a further analysis finds that compared with transactional institutional investors, the stable institutional investors have exacerbated the negative correlation between accounting conservatism and overinvestment. At the same time, the stable institutional investors have also eased the positive correlation between accounting conservatism and underinvestment. This indicates that different types of institutional investors can play a regulatory role in the relationships between accounting conservatism and overinvestment and between accounting conservatism and underinvestment.

On the Achievements of Industrial Transfer Undertaken in China’s Midwest: Based on Spatial Analytic Method of Geographic Information System

HU Wei1,2, ZHANG Yu-jie1

2015, 0(02):  603. 

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By employing the spatial analytic method of geographic information system, on the basis of the interprovincial panel data, this paper tries to analyze China’s industry and the three industrial evolution of spatial framework during 1996-2012, the path evolution of the industrial transfer undertaken in the central and western regions, and the impact of industrial transfer on the regional industrial restructuring and regional economic growth. The results indicate that during 1996-2012, China’s three industrial spatial frameworks have changed profoundly; the transferring direction and range of the three industrial focuses are quite different. The central and western regions undertaking industrial transfer present obvious stage characteristics, and have entered the stable growth stage of undertaking industrial transfer; but large-scale industrial transfer has not come into being. The industrial structures of every province (cities or areas) have experienced profound adjustments; the ratio of non-agricultural industries has been widely improved, especially in the provinces (cities and areas) of the central and western regions. The promoting effect of the regional industrial adjustment resulted from regional industrial transfer varies from province to province, and the differences are larger.

Biased Technological Progress, Factor Substitution and China’s Manufacturing Industry Costs: An Analysis Based on Panel Data from 30 Industries

ZHENG Meng, YANG Xian-ming, LI Bo

2015, 0(02):  604. 

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With the rising of wages and energy prices, China’s manufacturing industry is losing its competitiveness once gained from its cost advantages. This paper makes an analysis of the data of China’s 30 manufacturing industries from 2001 to 2010 by constructing a KLEM translog cost function model containing the neutral and biased technological progresses on the basis of the framework of the factor substitution. The results are as follows. Firstly, all the factors present a substitutive relation in general, except that the relationship between labor and energy complementation and the relationship between energy and intermediates are uncertain. Secondly, technical progresses from different sources have different effects on cost savings. Thirdly, there does exist technical bias in China’s manufacturing industry, among which R&D is more inclined to technical progresses of capital-enhancement mode and capital-biased mode, whereas FDI is more inclined to technical progresses of energy or labor-enhanced mode and energy or labor-biased mode.

Can Media Reports Affect IPO Underpricing of Companies Listed on SME’s Board?

NIU Feng1,2, YE Yong1

2015, 0(02):  605. 

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Taking 403 companies listed on the SME’s board in Shenzhen Stock Market during 2009-2012 as the research samples, this paper examines the relationship between media reports and IPO underpricing from the three dimensions of media coverage, media supervision and negative public opinion revealed by media. The empirical results show that the more media reports, the heavier the media coverage, and the higher the corporate IPO underpricing. Due to the number of negative media coverage is small, although there exists a negative correlation between media monitoring and IPO underpricing, it is not significant. However, when taking the ratio of the number of negative reports to the total number of reports as a proxy variable of media negative public opinion, it can be found that the media negative public opinion can significantly reduce the IPO underpricing rate and effectively inhibit higher IPO underpricing.

D-A Job Fit, Employability and Turnover Intention: The Mediating Effect of Job Satisfaction

CHENG Jun-jun, SU Yong, WANG Yu-yang

2015, 0(02):  606. 

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Based on the questionnaire survey of employees in a number of domestic organizations, this paper tries to explore the relationships between demands-abilities (D-A) job fit, employability, job satisfaction and turnover intention. The results indicate that the internal satisfaction of employees towards workplace can significantly reduce their thoughts of quitting and that the interpersonal satisfaction can significantly decrease their plans to leave. The perceived employability can significantly enhance their thoughts of quitting and plans to leave. The demands-abilities job fit can significantly increase internal satisfaction, interpersonal satisfaction and perceived employability; while at the same time it can also significantly decrease their thoughts of quitting and plans to leave. The internal satisfaction can partially mediate the relationship between D-A job fit and thoughts of quitting, while the interpersonal satisfaction can partially mediate the relationship between D-A job fit and plans to leave.

Internet Payment: Financial Risks and Regulation Design

MIAO Wen-long

2015, 0(02):  607. 

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One important base of internet financial is internet payments. When the regulatory authorities strengthen their efforts in regulation, the payment business income and the innovative business income of the payment institutions will be certainly affected, and their management cost and supervising cost will be increased, if they strictly obey the laws and regulations to manage the merchant risks. At the same time, the effects of the policies of local governments to develop local internet finance will be influenced. Therefore, while expanding the payment market business in an extensive manner, the best option for the payment agencies is to make more efforts to enter the internet financial market. However, in reality these behaviors may directly lead to the series of illegal operations of payment institutions, generate higher risks of money laundering vulnerabilities, and accumulate more financial risks. Thus, it is necessary to pay more attention to the business substance of the internet payment service agencies, to carry out functional regulation and risk supervision, and so on.

A Study of Information Content of China’s Commodities Futures Market Positioning

ZHENG Zhen-long, SUN Qing-quan, YANG Han-yu

2015, 0(02):  608. 

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The subject of this paper is to study whether the total futures market positioning has the ability to predict the financial asset prices, as well as what information the market positioning has reflected and implied. Based on China’s commodities futures market data, this paper conducts a study by constructing the growth rate factors of market positioning. The results indicate that the total market positioning factor has a significant ability to predict the yield rate of commodity futures, the excess return of bonds and the short-term interest rate. However, the market positioning factor of the single commodity market is weaker in this ability; and the stronger the speculativeness of the commodity futures is, the more intense the degree of noise influence on the predictive ability of market positioning factors will be. Meanwhile, the predictive ability of market positioning factors may be derived from the market speculative factors (expressed by the ratio of trading volume and positions), basis, inflation factor and expectation factor; and the market speculative factor is the key one.

Land Finance, Local Government Debt and Housing Price Level: An Empirical Research Based on Provincial Panel Data

DIAO Wei-tao

2015, 0(02):  609. 

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State-owned land transfer income and local debt income are two important parts of the wider-diameter “land finance”. The empirical study of the panel data from China’s 30 provinces during 2009-2012 shows that these two factors can play a positive role in promoting the local housing prices. The influencing mechanism of the latter is mainly the capitalization of the repayments of debts. This conclusion can provide some enlightenment for China’s housing price regulation as well as the governance of land finance and local debts. Thus, it is suggested to further perfect the financial system of the tax distribution system, to reduce the dependence of local governments on the land finance, to correct the appraisal system with GDP as the core index, to bring the local debt scale and the repaying capacity into the appraisal system, and to strictly control the bond-issuing scale of local governments and normalize their spending orientation under the “new rules” for local government debts.

Political Influence, Fiscal Decentralization and Civil Servants Scale of Local Governments

CHEN Zhi-guang

2015, 0(02):  610. 

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The intergovernmental political relations and the fiscal relations have significant impacts on the civil servants scale of China’s local governments. Compared to the political influence of the central government which is the total political influence related to the members of the Central Committee, the local governments can play a positive role in the civil servants scale indicated by the “ratio between officials and people”. Compared with the fiscal decentralization of the central government, the measuring indicators of local governments, including revenue decentralization, expenditure decentralization and fiscal dependence, also play a positive role in the expansion of civil servants scale. Therefore, the feasible strategies to be used to control and optimize the civil servants scale of local governments include optimizing and balancing all kinds of power, responsibility and interest, strengthening and improving Party’s leadership, improving the construction of local autonomy system, and promoting the work of government information disclosure.

Flow of Credit, Development of Small and Medium-Sized Banks and Urban-Rural Income Gap: An Empirical Study Based on Provincial Panel Data

TAO Zhen-sheng, FU Hong, HU Juan

2015, 0(02):  611. 

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This paper tries to analyze the impact of financial development on the income gap based on the inter-provincial panel data. The results of the empirical analysis show that the structural factors in China’s financial development have significant impact on the urban-rural income gap. The findings are as follows: (1) there is an inverted U-shaped relationship between the financial development and the urban-rural gap in general, but the evidence for the inverted U-shaped relationship cannot be found within the three bigger regions; and the financial development in the regions with higher level of economic development has smaller power to widen the gap. (2) The credit flowing to the city can play a significant role in widening the urban-rural income gap; while in the eastern region with higher efficiency of fund allocation in rural financial institutions, the credit flowing to rural areas has significantly narrowed the urban-rural gap. (3) The increase of the credit size of the four major state-owned banks has widened the urban-rural income gap, while the development of small and medium-sized banks can play a role in restraining the widening urban-rural income gap, especially in the central region where a large number of rural labors is outgoing.

Intergenerational Income Mobility in Different Ownership Sectors：From the Perspective of Labor Market Segmentation

CHEN Lin, GE Jin-feng

2015, 0(02):  613. 

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Intergenerational income mobility can reflect the influence of the parent income on the income of their offspring, so it is an important indicator in measuring opportunity fairness. The results of this study show that the intergenerational income mobility is significantly different in China’s different ownership sections. The parents working in Party and government offices, public institutions, SOEs and other sectors within the system have biggest impact on the income of their offspring, followed by those working in the private enterprises, foreign-funded enterprises, self-employed and other sectors outside of the system; while those working in the collective economic sectors have the least impact on their offspring. The contribution of the individual characteristic differences of the offspring to the offspring income gap between the sectors outside of the system and the collective economic sectors is more than 65%，while to the offspring income gap between the sectors within the system and the two other sectors is only less than 50%. Meanwhile, the contribution of the degree difference and the individual characteristics of the intergenerational income mobility to the income gap has different expressions at different positions of the offspring income distribution.