Table of Content

15 June 2018, Volume 0 Issue 06

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The Impact of Stock Mispricing on the Efficiency of Listed Companies’ Investment: An Empirical Study Based on China’s Stock Markets

WANG Yu-lan1, ZHOU Shou-hua2

2018, 0(06):  111. 

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Taking China’s A-share listed companies from 2007 to 2016 as the samples, this paper conducts an empirical test on the impact of stock mispricing on the efficiency of corporate investment. The findings show that stock mispricing could significantly promote the level of non-efficiency investment of enterprises and will exacerbate the excessive or insufficient investment of the enterprises. When further dividing the samples into the lower mispricing group, the middle mispricing group and the higher mispricing group according to the level of stock mispricing, it is found from the regression that only the higher mispricing group can significantly promote the non-efficient investment of the enterprises. In addition, it is found that to distinguish the direction of stock mispricing and to study the impact of higher mispricing and lower mispricing on non-efficiency investment can both intensify the inefficient corporate investment.

On the Priority and Influencing Factors in the Demand of Small and Micro E-Commerce Startups for Policy Support

YE Xiu-tang, YAO Lin-xiang

2018, 0(06):  112. 

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By making use of the micro-survey data of the supporting polices for the small and micro e-ecommerce startups in Jiangxi province and employing the descriptive statistics and multi-Logistic selecting model, this paper conducts an empirical analysis of the priority and affecting factors in the demand of small and micro e-ecommerce startups for policy support. The results show that the priority in the demand of the startups for policy support is in the order of “providing entrepreneurial projects”, “providing tax reduction and exemption”, “financing and credit supporting” and “providing skill trainings”. Such factors as the property of enterprises, the business model of enterprises, the number of employees, the support strength of the government, the marriage state of legal person of enterprises, the acquaintance level of supporting policies, the location of enterprises and so on have significant positive influence on the demand for the four supporting policies; while such factors as the period of registration and establishment of an enterprise, the types of the products on sales, the primary factors restraining the development, and the gender, education level, birthplace, age, risk preference, satisfaction to the publicity of supporting policies of enterprise legal person have significant negative effects on the demand for the four supporting policies.

Replacing Business Tax with VAT, Tax Shifting Capability and Value Relevance of Corporate Investment

QIAN Xiao-dong

2018, 0(06):  113. 

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Taking the A-share listed companies in China’s Shanghai and Shenzhen stock markets from 2011 to 2015 as the research objects, this paper conducts an empirical test on the impact of the “replacing business tax with VAT” policy on the value relevance of corporate investment on the basis of a theoretical analysis, and then it further discusses the regulating effect of enterprises’ tax shifting ability on the relationship between the two. The findings show that the“replacing business tax with VAT” policy has promoted the value relevance of corporate investment on the whole, and the stronger the tax shifting ability of enterprises, the more significant the effect of“replacing business tax with VAT”on the value relevance of corporate investment will be. After distinguishing the nature of control power, it is found that compared with the state-owned enterprises, the“replacing business tax with VAT”has significantly promoted the value relevance of the investment made by non-state-owned enterprises, and the regulation effect of the tax shifting ability of enterprises on the relationship between the two is significant only in non-state-owned enterprises. The conclusions of the study indicate that the“replacing business tax with VAT”has an optimizing effect on the efficiency of resource allocation in the capital markets, which can provide experience support for the government to improve the follow-up policies.

How does Population Ageing Affect Export Technological Sophistication

GAO Yue1, LI Rong-lin2

2018, 0(06):  114. 

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The structure of population in China is entering the period of population aging. Aging can bring positive and negative impacts on export technological sophistication. From the macro perspective, the impact of population aging on export technological sophistication is in a trend of inverted U-type. It is estimated that during the years after 2020 China will enter the area of the inflection point which is under its influence. Aging has different impacts on industries with different cognitive abilities and different intensities; as for the industries with higher intensity of age-appreciating cognitive ability, ageing can promote the improvement of the export technological sophistication in these industries; while for the industries with higher intensity of age-depreciating cognitive ability, ageing is to the disadvantage of the improvement of export technological sophistication.

How to Improve the Experience of Online-Shopping? An Empirical Study Based on the Factors Affecting the Quality of Users’ Double Perspective Experience

WANG Zhi-yuan1，WU Si-zong1，ZHAI Qing-hua2

2018, 0(06):  115. 

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From the dual perspective of consumers of mobile terminal and system users, this study explores the factors affecting the quality of users’ mobile-shopping experiences over the whole process of mobile-shopping. The result shows that the quality of APP, the quality in trading, the quality of after-sales and the quality of mobile network channel are all significantly and positively affecting the quality of the users’ M-shopping experience. Moreover, the test results of the constraining effect of the quality of APP, the quality in trading and the quality of after-sales also show that whether as the constraining factor or non-constraining factor, both APP quality and the quality in trade can significantly affect the quality of users’ M-shopping experience, while the quality of after-sales can affect significantly the quality only as a constraining factor. This conclusion can effectively explain the factors affecting the quality of users’ mobile-shopping experiences over the whole process of mobile-shopping, and at the same time, it reveals the constraining effects between the quality of APP, the quality in trading, and the quality of after-sales.

A Study of the Governance Effect of Party Organizations in State-Owned Enterprises in the Context of Classified Reform: Also on the Mode Selection of Party Organizations Embedded in Corporate Governance in State-Owned Enterprise

HAO Yun-hong, MA Shuai

2018, 0(06):  116. 

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Based on the sample data of China’s state-owned A-share listed companies, this paper empirically tests the differences of governance effects of Party organizations in different types of state-owned enterprises, and on this basis, it discusses the path selection of Party organization embedment in corporate governance in the context of the classified reform of state-owned enterprises. The empirical results show that, in the whole samples, there is no significant correlation between Party organizations’ participation in corporate governance and corporate performance; among the state-owned enterprises of public welfare type, there is a positive correlation between the degree of Party organizations’ participation in corporate governance and the corporate performance, and the higher the level of decision-making embedment and execution embedment, the better the enterprise performance will be. Among the state-owned enterprises of commercial type, the participation of Party organizations in corporate governance has an inverted U-type relationship with corporate performance, and the higher the level of supervision embedment, the better the enterprise performance is. These research results show that under the premise of adhering to the leadership of the Party organizations in the state-owned enterprises, we should adapt to the principle of adjusting measures to the particular enterprise, actively explore the effective path to improve the corporate governance mechanism of state-owned enterprises under the background of classified reform, and improve the operation efficiency of the state-owned enterprises.

An Empirical Study of Listed Company’s Inefficient Investment Behaviors: Taking Listed Companies in Strategic Emerging Industries as Examples

LUO Bin

2018, 0(06):  117. 

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Based on the bilateral stochastic frontier model, this paper studies the financing restraint effect, the agent cost effect and the net effect in the investment spending of the listed companies in the strategic emerging industries. The empirical results show that both financing constraints and agency costs have significant impacts on the investment expenditure of listed companies in the strategic emerging industries, while the impact of agency costs on the investment spending is slightly higher than the financing constraints. The annual effect suggests that over the past five years, the degree of excessive investment in China’s listed companies in the strategic emerging industries has no significant changes. By analyzing the empirical results, it is found that the increase of cash flow has not relieved but increased the financial constraints faced by listed companies; while owning more corporate free cash flow would cause more significant agent problems. Besides, among the listed companies of different scales there are some differences in the degree of excessive investment, which is reflected in the fact that the degree of excessive investment of small-scale companies is greater than that of the large-scale companies. Meanwhile, the pressure of external financing constraints did not improve the excessive investment in China’s listed companies in the strategic emerging industries. In order to guarantee the high efficiency of the government in supporting the strategic emerging industries, it is necessary for the government to reduce appropriately their intervention, establish perfect industrial standards, formulate the scientific and reasonable supporting policies, and give full play to the function of market supervision and external correcting.

Can Information Communication Capability Improve Responses of Local Financial Authorities to People’s Livelihood: From the Perspective of Modern ICTs such as the Internet

LIU Cheng-kui, XU Xiao

2018, 0(06):  118. 

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Information asymmetry will lead to the lack of supervision from the central government, the society and the residents over the public decision-making by local governments. Therefore, reducing the cost of information can constrain the discretionary power of local governments, which can restrain the investment impulse of local governments and enhance the responses of local financial authorities to the people’s livelihood. Modern ICTs such as the Internet can realize this impact mechanism. Further research shows that improving information communication capabilities can enhance the responses of local financial authorities to the people’s livelihoods, thus improving the development of public services for the local people’s livelihood. Therefore, in order to carry out the financial construction for people’s livelihood, we should not only carry out the financial system reform which can have permanent cure effect, but also pay attention to the external technical which may restrain the treatment of the symptoms. We should vigorously develop the network communications, give full play to the modern ICT technology in promoting the financial constructions for people’s livelihood and the development of local public services for people’s livelihood, strengthen the special education of modern ICT technology, and urge the residents to use modern ICT technology rationally to reflect the appeals of people’s livelihood.

Financial Development, Financial Flexibility and Corporate Deleveraging: An Empirical Study of China’s Listed Companies

WANG Lian-jun

2018, 0(06):  119. 

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Based on the annual data of China’s listed companies from 2005 to 2015, this paper studies the impact of financial development on the deleveraging of the listed companies. The results show that, firstly, the higher the level of financial development, the greater the extent of corporate deleveraging. And this kind of function mechanism has path dependence; the lower the initial leverage rate, the more motivated the listed companies to repay all their debts to reserve financial flexibilities. Secondly, when the level of financial development is lower, the companies will increase the proportion of cash holdings in the course of deleveraging. But with the development of regional finance, the state-owned listed companies are more likely to choose to pay off their debts to deleverage, while non-state-owned companies would mainly use their internal retained earnings to deleverage. Thirdly, the regulatory effect of the panel data model shows that financial development has a greater impact on the deleveraging of state-owned companies. The soft budget constraint has weakened the effect of financial development on the leverage adjustment of listed companies, but this effect is not significant in the sub-sample group of non-state-owned companies and the companies with flexible financial reserves. Therefore, the most fundamental policy lies in promoting the supply side reform continuously, getting rid of the market-planning dual-track system, reducing the institutional barriers, while at the same time creating healthy environment for the financial development, optimizing the corporate financing structures, developing the capital markets vigorously, and increasing the proportion of direct finance.

Setting of Monetary Policy Rules, Exogenous Impacts and China’s Macroeconomic Fluctuations: An Analysis Based on the Dynamic Stochastic General Equilibrium Model

WANG Jun-jie1, TONG Bing2

2018, 0(06):  120. 

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In order to analyze China’s macroeconomic fluctuations, the Bayesian method can be used to estimate a dynamic stochastic general equilibrium model containing various impacting and frictional factors. Such models usually use interest rate rules to measure the impact of monetary policy; however, the monetary quantity rule may be more suitable for China’s reality. Under the new setting of using the monetary quantity rule, the results of the historical variance decomposition show that during 1992-2016, the main driving factors for the fluctuation of output growth rate are the impact of money supply, the investment shocks and the exogenous demand shocks, of which the two major fluctuations need to be explained by other shocks. The main driving factors of fluctuations in inflation are the money supply shock, followed by the price-plus shock, the investment efficiency shock and the permanent technical shock. Under the new setting, the results of the theoretical variance decomposition show that although monetary policy is still a very important factor, the degree of its importance has been reduced; in addition, the investment fluctuation is mainly due to the impact of investment efficiency rather than the impact of investment product prices. These findings are inconsistent with the existing conclusions both at home and abroad. This shows that the choice of ways to measure the impact of monetary policy is crucial to the analysis of China’s macroeconomic fluctuations.

A Study of Income Growth Effect and Distribution Effect of Local Government Debt: Evidences from China

LIU Lun-wu

2018, 0(06):  121. 

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By making use of the sample data of 30 provinces in China from 2000 to 2015 and employing the analyzing method of inclusive growth, this paper conducts an empirical analysis of the income growth effects and distribution effects of local government debts in China. The findings show that in general the expansion of the scale of local government debt is to the disadvantage of the growth of resident income and widens the income distribution gap, which would lead to the worsening of the income distribution structure. Between the different regions and different groups, the income growth effect and the distribution effect of local government debts have some differences. In the western regions, the impact of local government debt on income growth and distribution is the greatest, while in the eastern and central regions, it is relevantly less. Local government debt is conducive to the income growth of the experienced groups, while it is not conducive to the groups with higher education level. So it is suggested that local government should ease the debt burden and keep an appropriate level of debt. The central government should implement a differentiated regional debt policy, and the local governments in the western regions should reduce their debts as many as possible.

Sector Difference, Inequality and Monetary Policy

CHEN Li-feng

2018, 0(06):  122. 

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Considering the reality of the co-existence of both the public sector employment and the non-public sector employment in China’s economy, this paper constructs a multi-sector dynamic stochastic general equilibrium model which contains both the public sector and the non-public sector, so as to investigate the impacts of monetary policy on consumption inequality and income inequality. The result shows that the expansionary monetary policy has widened the income gap between the two sectors, and then deteriorated the inequality in the economy. Based on this, it further explores the dynamic impact of monetary policy on the inequality under the conditions of the insider influences existing in the public sector. The results reveal that: (1) the more powerful the insiders’ influence is, the more powerful the deterioration effect of the expansionary monetary policy on the inequality will be. Further，we attempt to design monetary policy when inequality significantly exist in the economy. Then this paper finally gives a discussion on the design of the monetary policy in the context of the existing of significant inequality. （2）Whether there exists the insiders’ influence or not, the monetary policy which takes the inequality, especially the income inequality, as its goal can well alleviate the inequality. (3) The existence of the insiders’ influence will to some degree hinder the positive effects of the monetary policy which takes the alleviation of inequality as its goal.