Table of Content

15 December 2014, Volume 0 Issue 12

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Restatement of Asset Concept from the Perspective of Accounting Control Theory: A Review of The Conceptual Framework for Financial Reporting (Discussion Draft) Issued by IASB in 2013

WANG Qiu-hong, TANG Xiang-xi, CHEN li

2014, 0(12):  624. 

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Assets must be clearly defined to implement overall and effective accounting control. However, there are some problems in the current concept of assets (mainly FASB, IASB and the concept of Chinese definition), such as not clearly reflecting the nature of the assets, the scope of “transaction or event”not being unified and the definition of “owned or controlled” being in conflict with the equity theory, etc.. Thus, drawing on the modern property theory and from the perspective of accounting control theory, this paper elaborates the positive significances about the asset concepts laid down in The Conceptual Framework for Financial Reporting (Discussion Draft) issued by IASB in 2013, which“can clearly reflect the nature of the assets”, “integrate accounting control and resources allocation effectively”and“promote the development of accounting control idea to a new stage”. Finally, in view of China being currently in a special period of economic transition and upgrading and accounting standards being faced with convergence and differentiation, this paper proposes that the concept of assets in China should be revised as“the present economic resource formed by past transactions or events and controlled by particular property subject”.

Liquidity Constraints and Business Export Binary Margin: Evidence from China’s Industrial Enterprises

LI Xiang, ZHANG Zuo-ming

2014, 0(12):  626. 

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Based on the new-new trade theory and panel data from China’s industrial enterprises during 1998-2007, this paper adopts the Heckman two-stage selection model to test the effect of liquidity constraints on the export behaviors of China’s enterprises. The results show that liquidity constraint is an important factor that affects the export decisions of China’s enterprises and the export volume of the export enterprises. Compared to the intensive margin of trade, the effect of liquidity constraints on the extensive margin of export enterprises is more significant. Meanwhile, further study indicates that the above-mentioned conclusion exists mainly within the private enterprises and the mixed-ownership firms; the export of both the state-owned or collectively-owned enterprises is not subject to the liquidity constraint.

A Comparison between Behavior Auditing and Information Auditing: On the Development of Auditing

ZHENG Shi-qiao1, SONG Xia-yun2

2014, 0(12):  627. 

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According to different auditing subjects, auditing can be divided into behavior auditing and information auditing. This paper tries to make a comparison between behavior auditing and information auditing in terms of the ten basic issues of auditing. Then based on the comparison, it reflects on the status quo and the future outlook of the auditing development. Both behavior auditing and information auditing have their own characteristics in such aspects as auditing motive, auditing?objective, ?audit subject, audit object, audit contents, ?audit criteria, auditing procedure, audit evidence-obtaining model, audit conclusion, audit professional judgment and so on. Up to now, the branch of auditing that has been developed is mainly the financial information auditing, while the non-financial information auditing and behavior auditing are still in their infancy.

A Study of the Driving Factors of Enterprises’ Pseudo-Social Responsibility Behaviors

ZHAO Hong-dan

2014, 0(12):  628. 

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Taking the grounded theory as the main analyzing tool, this paper makes use of the related literatures to explore the driving factors of enterprises’ pseudo-social responsibility behaviors. It constructs a driving factors model of enterprises’ pseudo-social responsibility behaviors with three-level coding, from which 12 sub-categories and 3 corresponding major-categories, namely external pressure, internal pressure and fraud tolerance, have been obtained. In addition, the results also indicate that the acting paths of the three main categories are not the same. In particular, the external pressure is external motivation, the internal pressure is internal motivation, and the fraud tolerance is situational motivation. On such basis, this paper gives further discussion on the research results and theoretical contributions, and then puts forward some management suggestions for the governance of enterprises’pseudo-social responsibility behaviors.

A Study of Product Quality in Bilateral Trade of Sino-US Manufacturing Industries: 2002-2012

LI You

2014, 0(12):  629. 

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The economic gap between China and the developed countries is mainly reflected in the quality of the economy, while the trade quality is an important part of the economic quality. Based on the measurement of the product quality index, this paper studies the product quality in the bilateral trade of Sino-US manufacturing industries around recent 11 years. The results show that in China-US trade relations of the manufacturing sector, China is positioned at an absolutely disadvantageous end in terms of product quality, while US holds an absolutely dominant position. Among the 28 manufacturing industries, only China’s tobacco processing industry holds a position of high-quality trade status in general, as for the rest of the industry China has to admit its trade status of low quality. As far as the development trend is concerned, the product quality of China’s resource-intensive industries presents a trend of gradual improvement compared to the US. As for the high-tech capital-intensive industries, China’s trade quality is deteriorating relative to the US; while the related product quality of the labor-intensive industry has no obvious trend of change on the whole.

Research on the Service Innovation Model of Manufacturing Enterprises for Service-Oriented Manufacturing

LUO Jian-qiang, PENG Yong-tao, ZHANG Yin-ping

2014, 0(12):  630. 

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To shift from merely producing tangible products to providing value-added services based on products is a clear trend of China’s manufacturing enterprises to achieve a synchronous development of industrialization and servitization at present. The practice of the idea of service-oriented manufacturing in China has accelerated the service innovation of the manufacturing enterprises, which enables the enterprises to shift from the simple manufacturing and processing operations to providing the customers with comprehensive and whole-life-cycle service, thus the manufacturing businesses are elevated to the high value end. Through productive service, service production and real-time customers’ participation, a mutual fusion of products and services of manufacturing enterprises has been realized, which can effectively accelerate the pace of the transformation of China’s manufacturing industry. The research results show that the main driving factors for the service innovation of China’s manufacturing enterprises include the market competition degree, the customer heterogeneity and the demand for the solutions for a whole-set problems, with which the manufacturing enterprises are faced, as well as the service-oriented strategic concept. While the features of the products provided by the enterprises, technological levels, management capabilities and the ability to create network value have all provided effective support for the implementation of service innovation of manufacturing enterprises.

Verification of Bank’s Risk-Taking Channels of China’s Monetary Policy: An Empirical Study Based on GMM

LI Jing, HUANG Jun

2014, 0(12):  631. 

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Based on the panel data of China’s 72 commercial banks during 2006-2013, this paper constructs risk-taking proxy variables of commercial banks in selecting assets and liabilities and then verifies the integrity of bank’s risk-taking channels of China’s monetary policy with the GMM method. The empirical results show that on the whole the bank’s risk-taking channel of China’s monetary policy does exist, which is affected by macro economy and micro bank characteristics. On one hand, the incentives of the expansionary monetary policy on bank’s risk-taking behaviors are reflected in the asset selection, rather than liabilities selection behavior; on the other hand, the increase of bank’s asset risk taking will lead to the increase of credit availability, while the increase of liability risk taking will encourage the decrease of credit availability. This means, from a financial stability perspective, the monetary policy is not neutral. Therefore, when designing the monetary policy under the institutional framework of macro-prudential management, China should take into account the objective of financial stability.

A Study of Credit Risk Mitigation Instrument and Bank’s Risk-Taking Behavior

QIU Zhao-xiang, XU Kun

2014, 0(12):  632. 

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The Credit Risk Mitigation Instrument was promoted by the Association of Inter-bank Market Dealers in China at the end of 2010, which opened the era of credit derivative instruments of banking risk management. In recent years, in order to reduce banking credit risks and vitalize credit fund stock, credit risk transfer instrument was again mentioned by the regulatory authorities, which further enhanced the importance and urgency of the study of the credit risk mitigation instruments and the banking risk-taking behaviors. On the basis of the existing researches, taking bank’s risk-taking behaviors in China as research object, this paper conducts a selective analysis of the influence of credit risk mitigation instrument on bank’s risk-taking behaviors. The conclusion of the study indicates that the credit risk mitigation instrument can improve the bank’s risk-taking capacity. But taking into account the external economic influencing factors, its role is not significant. This shows that China’s credit risk mitigation instrument is only a supplementary means to banking risk management, and its risk transfer function remains to be further excavated.

An Economic Analysis of Participatory Budget

CHENG Guo-qin

2014, 0(12):  633. 

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The reform of participatory budget can not only manifest the value of democracy, but also contain profound economic significance. The participatory budget is conductive to achieving the expression, coordination and unification of public preferences, making the use of public funds meet the real public demands, and promoting the efficiency of public budget. The participatory budget can improve the transparency of public budget, correct the information asymmetry between the public and the government, and reduce the information search cost of the public and the moral risk of the government. The reform mode of China’s participatory budget agrees with China’s reform path, i.e., the exploration and innovation by the local governments and the recognition and support by the central government, which reflects the cooperative game between the local governments and the central government. The participatory budget can promote the competitive game between the local governments; in return, the competitive game between the local governments can promote the further development of the participatory budget. The Amendment to Budget Law passed in August 31, 2014 can also provide the relative institutional support for the advancement of the participatory budget.

The Differential Influence of Competition on the Effectiveness of Third Party Mark: Theory and Evidence

WANG Yu1, QIAN Hui-xiong2

2014, 0(12):  634. 

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The intensified competition resulted from increased sellers in the internet transaction market will influence the effectiveness of the third party mark as a signal transmission mechanism. It is found through the analysis of both the separating equilibrium and the pooling equilibrium in bilateral monopoly and competitive market in the theoretical framework of signal transmission that the intensified competition has exerted heterogeneous influence on the effectiveness of the third party marks. When the difference of one buyer’s willingness-to-pay towards different sellers is higher than the marked cost of the honest sellers but lower than the marked cost of the speculative sellers, the intensified competition will damage the effectiveness of the third party marks. However, when the difference between the marked costs of different sellers is relatively larger, but lower than the difference between the willingness-to-pay of the buyers, the effectiveness of the third party mark will increase first and decrease later along with the intensified competition. The above conclusion is empirically supported by the empirical analysis and effectiveness comparison of various mainstream third party marks on the internet transaction of Taobao under the different competitive environments.

A Study of Off-Budget Revenue and Fiscal Effort of Local Governments

WANG Zheng1，ZHOU Quan-lin2

2014, 0(12):  635. 

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Traditional studies on fiscal efforts are limited in the budget framework, neglecting the fact of large amount of long-standing off-budget revenue existing in China. Through an empirical analysis of theory and provincial panel data, this paper makes a study of the influence of local governments’ off-budget revenue on the fiscal efforts within the budget. The result shows that there exists significantly negative correlation between the two; the increase of off-budget revenue has restrained the fiscal efforts within the budget of local governments. Besides, the differences between the regions are relatively significant, the off-budget revenue in the eastern region has a more significant restraining effect on the fiscal efforts of local governments, while the western region has not. Therefore, it is of great importance to stimulate the fiscal efforts of the local governments through deepening the fiscal system reform and restraining effectively the pursuit of off-budget revenue and non-tax revenue by local governments.

A Measurement of Inter-Provincial R&D Capital Service: 1998-2012

XI Wei, XU Jun

2014, 0(12):  637. 

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The effect of bringing R&D expenditure as part of capital formation into GDP accounting is nothing less than a technical revolution in the statistical theory. Due to various reasons, such as different levels of efficiency in the market and different data foundation, there are lots of technical details to be improved in the practice of R&D capital measurement. Taking R&D assets as the research object, referring to the discourses of capital services in the National Accounting System in the year of 2008, this paper makes full use of the existing data and materials to re-measure the inter-provincial R&D capital stock in China with the perpetual inventory method. Furthermore, it explicitly distinguishes between the productive R&D capital stock and the wealth R&D capital stock. The results of this study can provide the relative data and literature to the researches of the contribution of quantized capital to economic growth.