Table of Content

15 January 2015, Volume 0 Issue 01

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A Study of Rarely-Seen Disaster Impact and Fiscal Policy Effect: An Empirical Test Based on China’s Economy

CHAO Jiang-feng

2015, 0(01):  612. 

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By constructing a dynamic stochastic general equilibrium model containing disaster expectation and factors of government spending, this paper makes an analysis of the effect of rarely-seen disaster events on the fiscal policy in China’s macro economy. The results show that the government spending can significantly weaken the impact of the rarely-seen disasters on China’s economy and improve the ability of macro economy to withstand rarely-seen disasters. The government fiscal subsidies show different characteristics in the two-department and three-department disaster economic entities; the wider fiscal subsidy range (accounted for more than 6%) can effectively resist the rarely-seen disaster impact on the two-department economic entity, but can not effectively shorten the recovery time of the economic entity. On the other hand, the role of fiscal subsidies must be treated differently in the three-department disaster economic entities: a lower proportion of fiscal subsidies (accounted for less than 3%) will intensify the instability of the economic entity due to the crowding-out effect on the fiscal expenditure, while a higher proportion of financial subsidies can offset the negative impact of the reduced fiscal spending, thus the economic entity can maintain a higher ability to resist risks.

On the Identification of Internal Control Efficiency: Steps, Methods and Scope

WANG Dong-sheng, WU Qiu-sheng

2015, 0(01):  614. 

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The designing efficiency should serve the performing efficiency throughout the steps of identification of the internal control efficiency. As for the methods for the identification, the positive identification based on the idea of “goal achieving” is more aligned with the connotation of the internal control efficiency than the negative identification based on the idea of “significant defect”. As for the scope of identification, the goal of internal control should be divided into two levels: the reasonable assurance level and the realization promoting level.

On the Theoretical Integration of Accounting Subject and the Boundary of Accounting

CAO Wei

2015, 0(01):  615. 

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The subject of accounting has formed many branches, and from it split some independent majors as well, such as financial management, auditing, and so on. However, due to lacking of comprehensive thinking and theoretical summary, some of the basic relationships between accounting branches still cannot be explained clearly in theory, thus making people have difficult in understanding clearly the hierarchical structure of the accounting discipline and the nature and boundary of accounting. The idea of theoretical integration presented by this study is: to reconstruct (or return to) the basic theoretical structure of accounting, and on this basis to establish the basic accounting; to shape some accounting branches through the cross links between the basic accounting and other related disciplines; to form a narrow-sense accounting with the external and internal two information systems of the accounting entity, which should be developed on the basis of the basic accounting; and to integrate such disciplines as the narrow-sense accounting, financial management and auditing into a generalized accounting through the value management of the accounting entity, which is necessary. Some interdisciplinary subjects shaped by the accounting information system with some related crossing disciplines (such as national economic accounting, forensic accounting, etc.) belong to a more generalized accounting.

Political Connection，Institutional Environment and Export Behaviors of Chinese Enterprises

GUO Ping

2015, 0(01):  616. 

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Institutional environment has become an important factor which influences the behaviors of the export enterprises. However, during the period of economic transition with present imperfect formal institutions, political connection as an informal institution is also playing an important role. Based on the data of investment climate survey from World Bank, this paper analyzes the relationships between political connection, institutional environment and corporate export behaviors. The results show that both political connection and institutional environment can positively impact the “extensive margin” and “intensive margin” of the export enterprises, and there exists a significant alternative relationship between the two. Political connection and institutional environment have a significant positive effect on the extensive margins and intensive margins of exports of non-state-owned holding companies, while they have a significant positive effect only on the extensive margin of the export behaviors of state holding enterprises and on the intensive margin of the export behaviors of foreign-controlled enterprises.

Research on the Shopping Life Cycle Model in the Context of SoLoMo

WANG Hai-ping

2015, 0(01):  617. 

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The influence of social, local and mobile factors in the context of SoLoMo on consumer psychology and behaviors has formed a shopping life cycle model different form that in the context of traditional network environment. This model is made up of five cyclic stages, including demand generation, information retrieval, online transaction, offline consumption, online evaluation and sharing. In each stage, the consumers’ mental models have different characteristics. With consumption experience and interaction as the core, the model shows that consumers can complete all the stages whenever and wherever possible. Therefore, online merchants should enhance their ability of interaction and communication with consumers in each stage of the life cycle model and provide better personalized service experience to consumers, so as to achieve a win-win situation between them.

Legal Environment, Contract Execution and Export Behaviors of Chinese Enterprises

JIANG Wei1, JIANG Liu2

2015, 0(01):  618. 

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To comprehensively promote the socialist legal system construction and establish favorable business environment is a key to achieve a continuous and healthy growth of China’s economy. By making use of the business data from 422 small firms in manufacturing industry in China’s 30 provinces from 1998 to 2007 and adopting the two dimension index of the provincial legal environment and the degree of industrial contract dependence, this paper tries to conduct an empirical study of the impact of legal environment on China’s export behaviors with the estimation method of “difference in difference”. The results show that the improved legal environment has promoted the expansion of export intensive margin and extensive margin. The improved business legal environment can play a more significant role in promoting the export probability and export value of the enterprises in the more contract-dependent industries. The operating years, average wage and enterprise scale have greater impact on the export behaviors of the enterprises in the more contract-dependent industries, while the productivity paradox exists only in the contract-dependent industries with lower degree.

Monopolistic Advantage, Executive Contribution and Executive Compensation

DU Wen-cui

2015, 0(01):  619. 

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When the monopolistic advantage being introduced into the modified optimal contract model, it can be found that the monopolistic advantage has an amplification effect on the executive behaviors of state-owned monopoly enterprises. Only by including the monopolistic advantage in the remuneration contracts, can the problem of the distorted executive compensation resulted from the amplification effect be solved. This paper selects the relative data from state-owned monopoly enterprises during 2001-2010, estimates the executive contributions of the state-owned monopoly enterprises by making use of the difference values between the actual performance and the expected performance, and conducts a test on the rationality of the executive remuneration contracts of the state-owned monopoly enterprises through the matching degree between executive contribution and executive compensation. The study finds out that the existing executive compensation contracts in state-owned monopoly enterprises are not reasonable, mainly in the form of receiving higher compensation with less contribution.

An Empirical Analysis of China’s Financial Security Index Synthesis

JIA Xiao-jun, LI Meng-gang

2015, 0(01):  620. 

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The composite index method has such features as simplicity, clearness, flexible operation and continuous timing sequence. By employing the composite index method to synthesize financial security index, this paper conducts a comprehensive assessment of China’s financial security through the changes in the index. The results show that China’s financial security index from January of 2005 to March of 2014 shows a fluctuating trend, when taking into special considerations of such factors, which would lead to liquidity risks, as the off-balance sheet business, the interbank business and the impact of subsidiaries. This trend generally coincides with the trend of historical changes in China’s financial security situation, indicating that the synthetic financial security index can basically reflect the real situation of China’s financial security.

Measurement and Factor Analysis of China’s Financial Stability (1994-2013): From the Perspective of Comprehensive Assessment of“Performance”and“Ability”

ZHOU Hai-ou, XIAO Xi

2015, 0(01):  621. 

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Maintaining financial stability has become one of the key issues in China’s macroeconomic management. According to the connotation of financial stability, this paper believes that the assessment of financial stability must take into account the principles of“performance”and“ability”. It establishes a financial stability index which contains 16 basic indicators in terms of China’s reality and the availability of data. On this basis, it employs the principal component analysis method to carry out a quantified measurement and prediction of the conditions of financial stability from 1994 to 2013. The results indicate that in the past 20 years, China’s financial stability has been significantly improved. Financial stability depends on the stability of the banking system to some extent. The reform in the financial supervision system, the joint-stock system reform of state-owned commercial banks and their going public, and the reform of non-tradable shares in shock market all played an active role in improving China’s financial stability. A further validity analysis and sensitivity test on the measurement result indicate that the index established in this paper can acutely characterize the changing trend of China’s financial stability and that it can be sensitive to show the impacts of the internal and external factors on China’s financial stability. This index can also provide some important information for people to understand the determinants of China’s financial stability, so it has a strong value in policy application.

A Study of the Threshold Effects of Environmental Regulation, Element Agglomeration and Total Factor Productivity

TAO Chang-qi, ZHOU Xuan

2015, 0(01):  622. 

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Based on the theory of nonlinear econometrics, this paper takes the environmental regulation intensity and the degree of element agglomeration as threshold variables to establish panel threshold regression model, in order to exploring the impact strength of environmental regulation and element agglomeration on TFP and its decomposition. The results show that the environmental regulation presents dual, triple and single threshold effects to environmental TFP and its decomposition, while element agglomeration presents triple, dual and dual threshold effects to them. The effects of the provincial environmental regulation intensity and the degree of element agglomeration show an apparent polarized phenomenon. The government should moderately control the environmental regulation intensity and make it transfer to the medium group, so as to achieve the positive externalities of environmental TFP. Moreover, each province and city should continuously stride over the threshold level of element agglomeration degree, which is the key to achieving the scale economy of environmental TFP growth as well as promoting the collaborative development of economy and environment.

Land Finance and Land Financing: Coupling Risk and Control

XIN Bo

2015, 0(01):  623. 

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Land finance and land financing as well as the coupling of the two can be seen as a special kind of economic phenomenon in China in recent years, they are also an important driving force for China’s fixed asset investment and high-speed economic growth. Through an analysis of the coupling conditions and formation process of land finance and land financing, it can be found that land finance and land financing can alleviate local government financial pressure and promote local economic growth and social development, while at the same time they have also accumulated a lot of risks, such as the unilateral land urbanization, the unsustainability of the economic growth impetus, having weakened the central government’s ability to conduct macroeconomic regulation and control, and so on. Therefore, they should be watched attentively and controlled with further measures.

Reestimating the Housing Consumption of Chinese Urban Household: An Empirical Analysis Based on Chinese Family Tracking Survey Data

ZHAO Feng-jun

2015, 0(01):  625. 

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Housing consumption is an important part of household consumer spending and GDP. International experience shows that the virtual rent of owner-occupied housing constitutes the main part of the housing consumption. Chinese housing consumption in both urban and rural areas has been underestimated because the traditional accounting methods underestimated the virtual rent of the owner-occupied housing. Based on the data of 2010 provided by the Chinese Family Panel Studies database (CFPS), this paper adopts the rental-equivalence approach to reestimate the housing consumption of urban household, including the owner-occupied housing. The results show that the reestimated value of the housing consumption has increased significantly, but it does not significantly increase the consumption share in GDP. China’s problem of low consumption rate cannot be attributed to systematic underestimation of housing consumption.