Table of Content

15 July 2018, Volume 0 Issue 07

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Product Market Competition, Cash Dividends and Company Performance

LIU Yun, YE De-lei

2018, 0(07):  99. 

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The relationship between cash dividend policy and company performance is a hot issue that is concerned by both the theoretical and practical circles. By selecting China’s A-share listed companies from 2010 to 2016 as research samples, this paper empirically examines the relationship between the degree of product market competition, the level of cash dividends, and the company performance. The results show that to increase the cash dividends by the listed companies can help improve their performance, and that the degree of product market competition is positively correlated with the level of cash dividends. Then it further examines the role of product market competition in adjusting the relationship between the level of cash dividends and the company performance. The findings reveal that if the industry has higher degree of product market competition, its level of cash dividends will also be higher, and the performance of its listed companies can be all the more improved. The regulators should examine the heterogeneity of the industry and the companies thoroughly, establish a scientific and effective dividend supervisory mechanism, and promote the healthy development of the capital market.

The Impact of China’s Urban Housing Price on Corporate Over-Debt: From the Perspective of Corporate Heterogeneity

XU Ye, YU Jia-ju

2018, 0(07):  100. 

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Based on the samples of 35 large and medium-sized cities in China from 2003 to 2013, this paper discusses the influence of urban housing prices on corporate debt financing from the two dimensions of corporate over-indebtedness and credit constraints. The findings show that if the nature of property rights and the degree of credit constraints are different, the impact of the rising house prices on corporate debt financing is also significantly different. The non-state-owned enterprises with weak credit constraints have a significant“crowding out”effect, for which their funds will be attracted into the real estate industry, thus the“de-reality”of the economy will be intensified; while the non-state-owned enterprises with no credit constraints will have a“crowding-in”effect. However, as for the non-state-owned enterprises with strong credit constraints, their financing costs will be increased. To a certain extent, this can alleviate the ownership discrimination in debt financing and facilitate the flow of social capital into the non-state-owned enterprises.

Can Servitization of Manufacturing Input Improve Total Factor Productivity? From the Perspective of Cost and Risks

XIA Qiu, HU Zhao-ling

2018, 0(07):  101. 

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The cost and risk issues in the transformation of enterprise servitization may trigger negative impact on the productivity. From the perspective of cost and risks, this paper analyzes the nonlinear effect of the servitization of manufacturing input on total factor productivity with the cross-country panel data. The empirical results show that the servitization of manufacturing input has “U-shaped” effect on TFP; the lower level of servitization of manufacturing input has an inhibiting effect on TFP, but after passing through the inflection point, it has a positive impact on TFP. This kind of “U-shaped” effect that first inhibiting then promoting exists in both the developed countries and the developing countries; the inflection point on the “U-shape” curve is located around 83% of the servitization of manufacturing input. When implementing the servitization strategy, each country should do it step by step, pay attention to customer participation, establish risk sharing mechanism, and avoid the adverse impact of blind servitization adjustment on economic growth.

Service Trade Policy and Productivity of Manufacturing Industry: the Role of Government Governance

FENG Zong-xian1, LU Hui-xin1, GUO Gen-long2

2018, 0(07):  102. 

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This article makes use of the panel data of 38 countries with different economic development levels to study the impact of service trade restrictions on the productivity of manufacturing industries of these countries. It also analyzes the regulating effects of government regulation on this kind of impact. The results show that the impact of the service trade restrictions depends to a large extent on the level of governance of the governments of each country; the fewer the service trade restrictions, the more significant the improvement of the productivity of the manufacturing industry of the countries with higher level of government governance will be. The lower productivity of the manufacturing industry is correlated with the higher degree of service trade restrictions, its effect will be weakened along with the improvement of the level of government governance. The regulating effect of government governance in the countries with middle and lower level of income is greater and more significant than that in the countries with higher level of income. Under the different ways of provision of service trade, the government governance has different channels to play its positive roles.

Foreign Directors, Organizational Legitimacy and Corporate Sustainable Growth

ZHANG Chen1, WANG Jing2, LIU Xiang3

2018, 0(07):  103. 

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The purpose of introducing foreign directors is to improve the level of decision-making of the board of directors and standardize its behaviors, so as to obtain the recognition of stakeholders, improve the organizational legitimacy and finally achieve sustainable growth. Taking the listed companies in Shanghai and Shenzhen stock markets from 2011 to 2015 as research samples, this paper conducts an empirical study. The findings show that the introduction of foreign director is conducive to the improvement of organizational legitimacy. This kind of regulation effect is to a large extent produced by the advanced management experiences brought about by the foreign directors, rather than by removing the interference of human relations. In addition, it is also found that the improvement of organizational legitimacy is conducive to corporate sustainable growth; and having foreign directors and Chinese mainland directors with overseas background could both promote the positive correlation.

The Impact of Service-Oriented Leadership on New Generation Employees’ Pro-Social Illegal Behaviors: Mediating Effect of Psychological Safety

HE Qin-qing1,

2018, 0(07):  104. 

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Pro-social illegal behavior is a new concept proposed in recent years, and there?are fewer?studies and empirical researches about its formation mechanism. Taking the new generation employees as the study objects, this paper explores the influencing mechanism of service-oriented leadership on the new generation employees' pro-social illegal behaviors. It constructs a theoretical model of the relationship between service-oriented leadership, psychological safety and pro-social illegal behaviors and conducts an empirical analysis of the data from the questionnaire survey of 283 employees born after 1980 or 1990 in Guangdong, Yunnan, Hainan and other places. The findings show that the service-oriented leadership has a positive impact on the pro-social illegal behaviors of the new generation employees, that the service-oriented leadership has a positively impact on psychological safety, that psychological safety has a positive impact on the pro-social illegal behaviors of the new generation employees, and that psychological safety is playing an mediating role between the service-oriented leadership and the pro-social illegal behaviors of the new generation employees.

On the Adverse Selection of P2P Online Lending Market and Its Governance

ZHOU Geng, FAN Cong-lai, WANG Yu-wei

2018, 0(07):  105. 

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Information asymmetry has a negative effect on financing efficiency; financing interest rate can ease the impact of information asymmetry on financing efficiency, while financing term can enhance the impact of information asymmetry on financing efficiency. The credit-keeping financiers should disclose all information as much as possible. When the information disclosure is frustrated, it can be made up by raising interest rates and shortening the time limits. The investors should resist the temptation of high interest rates and choose the financing projects with well-disclosed information. The P2P intermediary platforms should establish smooth channels for information disclosure and improve the degree of intelligence for automated bidding. The regulators should establish a mandatory information disclosure system and strive to reduce the level of equilibrium interest rates in the markets.

Can Industry Association Promote the Sound Development of P2P Online Lending?

FANG Xing

2018, 0(07):  106. 

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The Internet finance associations are playing an important role in the supervision of P2P online lending and the self regulation of the industry. This paper employs the difference in difference (DID) method to study the 3298 problematic platforms in 22 major provinces before and after the establishment of provincial Internet finance associations. The results show that the establishment of Internet finance associations in every province can promote the exposure of the problematic p2p platforms, and the promotion of industrial regulation and self-discipline can on the one side eliminate some poor p2p platforms, while on the other side it can reshape the confidence of the investors in the P2P markets. However, there exists a time lag effect in the self-regulation of the Internet finance associations; the longer the time lag, the more significant the impact of the association on the problematic platform will be. Therefore, the industrial standards should be established, the investor education should be strengthened, and the regulatory coordination should be promoted.

A Study of the Chinese Urban Residents’ Preference for the Quality-Safety Information of Agricultural Products and Their Willingness to Pay

LIU Cheng, FANG Xiang-ming

2018, 0(07):  107. 

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Based on the samples of 2501 consumers collected in the whole country, this paper employs the discrete selection experiment to conduct an empirical analysis of Chinese urban residents’ preference for the quality-safety information of agricultural products and their willingness to pay with the random coefficient model and the latent class model. The results show that to obtain product supervision and inspection information, traceability information, evaluation information, quality and safety incident information, quality and safety knowledge, etc., can improve consumers’ utility level, that consumers’ willingness to pay for the traceability information is the strongest, followed by evaluation information and quality and safety knowledge, and that their preference for the quality and safety information of agricultural products has certain heterogeneity. Therefore, it is suggested to establish an information sharing platform concerning the quality and safety of agricultural products, so as to realize the provision of traceability information; to gradually realize a differentiated and diversified information service concerning the quality and safety of agricultural products; and to guarantee the authenticity of the quality and safety information of agricultural products and the time-efficiency of the information services.

Research on the Impact of Tax Preference and Adjustment Cost on Corporate R&D Investment Behavior

LI Hua

2018, 0(07):  108. 

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Tax preference is an important policy means to motivate enterprises to increase their investment in R&D, but their R&D investment is also adversely affected by adjustment costs. On the basis of defining the connotation of adjustment costs, this paper makes the use of the relationship between R&D investment and Tobin’s Q value to estimate the adjustment costs in China’s manufacturing industry, service industry and coal mining industry. Then it employs the system generalized moment estimation method to conduct an empirical analysis of the impact of tax preference and adjustment costs on corporate R&D investment behaviors. The findings show that the existing tax preference policy can play a stimulating role in corporate R&D investment to a certain extent, but the existence of adjustment costs has reduced the incentive effect of tax preference. Therefore, the government should actively create an institutional environment to reduce the adjustment costs of enterprises, encourage the enterprises to make reasonable plans which suit their own industrial characteristics so as to reduce the adjustment costs, and to formulate tax preference policies in accordance with such conditions as industrial planning, enterprise profitability, capital turnover and so on, thus the tax preference policy can be expanded and implemented fundamentally.

The Improvement of Transport Facilities Construction and Consumption Transfer: Empirical Evidences from the Surrounding Cities around Hangzhou Bay Cross-Sea Bridge

HUANG Xian-ming, XIAO Ting

2018, 0(07):  109. 

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Through the study of the changes of the retail sales value of social consumption in the two cities of Ningbo and Jiaxing on both sides of Hangzhou Bay Cross-Sea Bridge before and after its opening, this paper makes an analysis of the impact of transportation infrastructure on the consumption of cities along the route. By employing the synthetic control method, the cities in the controlled group are given the power to simulate the retail sales value of social consumer goods in the two cities under the counter factual conditions that the bridge is assumed not opened to traffic. The findings show that since the bridge was opened to traffic the actual retail sales value of social consumer goods in Ningbo and Jiaxing has failed to reach the level that should have been reached when it was not opened to traffic in theory, namely, there is an issue of consumption outflow. The bridge opening to traffic has resulted in the loss of retail sales value of social consumer goods in Ningbo by 4.1%, and in Jiaxing by 7.7%. This proves that there exists a “siphon effect” in the improvement of transport facilities.

The Impact of High-Speed Railway Construction on the Service Industries of Intermediate Station Cities: From the Perspective of Regional and Industrial Heterogeneity

ZHU Wen-tao, GU Nai-hua, TAN Zhou-ling

2018, 0(07):  110. 

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By using the panel data of Chinese cities and the time schedules of high-speed railway opening in each city, this paper employs the difference in difference method to examine the impact of high-speed railway construction on the service industry employment of the intermediate station cities. The findings show that high-speed railway can notably improve the employment level of service industries of the intermediate station cities, however, this kind of effect presents heterogeneous features due to the differences in regions and industries. The impact of high-speed railway construction on the employment of such service industries as wholesale and retail, leasing, business services, and resident service is significantly higher than that on other service industries, but such impact is not significant on the employment of the public service industries, such as the public facilities management (water conservancy, environment, etc.), the social welfare (health, sports, etc.), public management and social organizations. And that high-speed railway can significantly improve the employment level of the service industries of the intermediate station cities with higher degree of marketization, but for cities with lower degree of marketization, it is not significant.