Table of Content

15 March 2018, Volume 0 Issue 03

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Will Managers Listen to the Voice of the Market in Making Cash Savings Decisions

ZHOU Hui1, TAN Yue2, YAN Bo3

2018, 0(03):  146. 

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Based on the samples of non-financial listed companies, this paper explores whether managers will listen to market voices in making their cash savings decisions. The findings show that managers will adjust their own cash savings level according to the share price levels in the same industry, and the information content of the share prices in the same industry can increase the sensitivity of cash savings to the share prices in the same industry. This indicates that managers in the cash savings decision-making have the market learning behavior in the same industry; this behavior will improve the efficiency of decision-making and improve the business performance. The results of the further study show that in the growing industries and competitive industries, the market learning in the same industry is more obvious, and that the private enterprises and managers of the lower status enterprises in the industry are more inclined to learning from the market in the same industry.

Auditing System and Audit Efficiency: Evidences from Local Auditing Agencies

MA Yi-qun, WU Qiu-sheng

2018, 0(03):  148. 

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Auditing system has an important impact on audit efficiency. According to the theory of immune system, audit efficiency can be divided into revealing efficiency, defending efficiency and preventing efficiency. This paper employs the DEA-Malmquist method to examine the impact of the auditing system during the period of 2002-2013 on the audit efficiency. The findings show that firstly all the three kinds of efficiencies in the audit efficiency are not well performed, and the regional differences are significant; secondly, the auditing system has a significant impact on audit efficiency. Then, on the basis of exploring the reasons for the changes of audit efficiency and from the perspective of improving audit efficiency, it makes an analysis of the development direction of the auditing system, so as to provide reference for the formulation and revision of the auditing system in the future.

Policy Performance Evaluation of Transformation and Upgrading of China’s Processing Trade under the Division of Global Value Chain

HU Da-li1, LIU Zhi-hong1,2, CHEN Fei-long1

2018, 0(03):  149. 

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Since the Party Center Committee put forward the strategic task of“promoting the transition and upgrading of the processing trade,” the relevant departments have issued a series of related supporting policies. Then, what is the effect of these policies? What are the remaining problems? And how to make improvements? To answer these questions has important practical significance. From five perspectives, this paper selects 7 variables and applies the factor analysis method to evaluate the industrial policy performance of China’s processing trade. The results show that in view of the combined effects of the policy, the effect of the processing trade is good in general, however, the policy effect latterly present a decline trend. In view of the policy structural effect, the processing trade policy has a significant effect on the transformation and upgrading of the products, but effect on the upgrading of the value chain is not good. The later policies have even hindered the upgrading of the value chain, promoting the processing trade towards the low end.

Transportation Infrastructure, Adjacent Effects and Bilateral Trade: An Empirical Analysis Based on the Trade Data of China and“The Belt and Road”Countries

ZHANG Yan-yan, YU Jin-ping

2018, 0(03):  150. 

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Transportation infrastructure plays a decisive role in the development of bilateral trade. On the basis of the trade data of China and the 64 countries along the “One Belt and One Road” during the period of 1996-2016, this paper employs the seemingly unrelated method to conduct an empirical analysis of the influence of the transportation infrastructures on the export trade. It introduces the spatial model idea into the model of the transportation infrastructure and China’s export trade, establishes the adjacent effect function, and empirically analyzes the influence of the transportation infrastructure of the importing countries and their neighboring countries on China’s export trade. The findings show that the transportation infrastructures of the importing countries and their neighboring countries have a positive effect on China’s export trade. Along with the increase of per capita GDP, the transportation infrastructures will decrease its influence on China’s export trade. To strengthen the construction of transportation infrastructures in the middle-income countries will significantly promote the export trade of China’s to the“Belt and Road”countries.

A Study of the Changing Path and Trend of Brand Slogans of Chinese Enterprises: From the Perspective of Multi-Case Study

ZHANG Pan, NIU Yong-ge

2018, 0(03):  151. 

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Changing the brand slogans of enterprises is an important management strategy to keep brand vitality. This paper focuses on two Chinese famous brands -- Yili and Haier -- to explore the changing path and trend of brand slogans in Chinese enterprises by employing the combined double-case study and content analysis method. Then it is verified with the changing path of brand slogans of Li Ning Company. The results reveal that Chinese brand slogans have shown an obvious changing tendency in the changing path with some characteristics, gradually changing into the slogans of such types as consumer-oriented perspective, emotional appeal, lower power distance, stronger rigidity style, strong implication and non-associative slogans.

Will PE Investment Characteristics Affect Their Selling Behavior?

WANG Jian-feng1, ZHANG Ran2

2018, 0(03):  152. 

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Taking the A-share companies listed firstly during the period of 2006-2011 in Shanghai and Shenzhen stock markets with the participation of private equity investments as the research objects, this paper from the perspective of the characteristics of PE investment conducts a study of the behavior of reducing holding-shares after the lockup period of China’s PE investment is lifted. The findings show that if the PE holding is higher, the investment period is longer, and a director is accredited to the enterprise being invested, the holding-shares will be reduced less, but the reducing scale of PE investment with the combined strategy will be larger. In view of the investment background, the reducing scale of PE investment with foreign fund background will be even less. Further study reveals that compared with PE investment with private background, the reducing scale of PE investment with state background is much less. The conclusions of this paper can not only enrich the relevant literature of reducing holding-shares by the insiders and PE investments after IPO, but also help the outside investors understand the reducing behaviors of PE investments after IPO of the investment companies.

Political-Financial Cycles and Monetary Policies Effects of Great Powers

MIAO Wen-long

2018, 0(03):  153. 

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To grasp the financial periodic law is very important in the steady financial development, and government succession is a factor affecting the operation of the financial markets, which is not to be neglected. Based on the observations of international empirical facts, this article adopts the panel data regression analysis and the cross-spectrum analysis to conduct an empirical study. The findings indicate that there exists a significant“political-financial cycle”in the market economy countries of different types, and that political cycle is an important factor affecting the financial cycles of the country. The financial cycles of one country is also significantly affected by the monetary policies of the core countries, but the effect is smaller than the political cycle of the country. There exists a certain numerical relationship among the financial cycles of every country, but the levels of intimacy are different, no universally-changed periodicity law is found. Therefore, in order to smooth the cross-border capital flow and maintain the stable development of the country’s economy, it is necessary to measure and grasp the periodic law of international finance, to implement active monetary policies, and to carry out moderate structural capital control under the premise of keeping the independence of monetary policies.

Inclusive Financial Development and Poverty Alleviation: Direct Impact and Spatial Spillover Effect

TAN Yan-zhi, PENG Qian-rui

2018, 0(03):  154. 

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Based on the panel data of 31 provinces in China during the period of 2006-2015, this paper applies the factor analysis method to determine the evaluation index system of inclusive financial development level from multiple dimensions. Then it employs the spatial Durbin model to examine the influencing mechanism of the level of the inclusive financial development on poverty alleviation. The findings show that when such factors are controlled, i.e., government expenditures, industrial structures, level of urbanization, consumption level and the opening degree, the level of inclusive financial development of any region can have a significant positive impact on poverty alleviation. At the same time, the level of inclusive financial development of the neighboring regions together with the spatial relationship can produce a positive spatial spillover effect on poverty alleviation. The inclusive finance can not only alleviate poverty through increasing income, promoting economic growth and increasing equity capital, but also reduce the poverty rate of the neighboring regions significantly through the spatial spillover effect.

Budget Growth Characteristics in China’s Prefecture-Level City Governments：Incremental Budget or Intermittent Budget—— An Observation of City A in Guangdong Province from 2008 to 2016

CHEN Dong-mei, LIN Mu-hua

2018, 0(03):  155. 

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Budget growth is a very important issue in the study and practice of public budgeting. Behind the characteristics of budget growth, it is the combined action of economic changes, social changes, policy transformations, government reforms and budget system. A study of the 2008-2016 budget data of 101 departments in City A, one of the prefecture-level cities of Guangdong province, shows that: the growth characteristics of total expenditure and project expenditure of the department budgets in City A both tend to be dominated by the intermittent budget model, and the intermittent characteristics of project expenditure are more significant; the incremental and the intermittent characteristics of the department budget in City A are the result of the resources allocation influenced by many factors under the joint action of incremental budget and zero-base budget. Therefore, in order to further optimize the budget results of the government departments of prefecture-level cities, it is necessary to strengthen the standardization and transparency of budgeting and to improve the scientificity of budget expenditure standards; to strengthen the linkage between the policy process and the budget process, and to establish a well-restrained budget system; and to integrate the performance concept into the whole process of budget management, so as to implement the full scale performance management.

Life Cycle, Fiscal Policy and Innovation Ability: Empirical Evidences from Technology-Based SMES

GUO Jing-xian1, YUAN Ze-ming2

2018, 0(03):  156. 

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Taking the non-listed technology-based SMEs as the research objects, this paper evaluates enterprises’ innovation abilities by applying the method of principal component analysis. On such a basis, it makes an empirical analysis of the impacts of fiscal policies on the innovation ability and the regulatory effect of life cycle. The findings show that the two tools of government funding and tax incentive in the fiscal policies have incentive effects on the innovation abilities of enterprises. At the different stages of life cycle, the impacts of the two tools on the innovation ability are different; at the start-up stages of enterprises, the impact of government funding is greater than that of tax incentives, while at the mature stages of enterprises, the impact of tax incentives is greater than that of government funding. Therefore, it is suggested to strengthen the fiscal policy support to the technology-based SMEs, to deepen the financial system reforms, and to promote the sound development of the multi-level capital markets.

A Study of the Effectiveness of Macro-Prudential Policy on Regulating the Housing Market

WANG Yong

2018, 0(03):  157. 

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How to regulate the housing market to prevent financial systematic risks and economic hard landing risks has become a difficult problem encountered by governments of all the countries and the economists. This paper introduces the macro-prudential policy, which takes the dynamic loan value ratio as the macro-prudential policy tool, into the constructed DSGE model, so as to study the effectiveness of macro-prudential policy on regulating the housing market. The results show that:（1）the implementation of the macro-prudential policy can achieve the goal of stabilizing the housing price, thus financial systematic risks can be effectively prevented;（2）the implementation of the macro-prudential policy will make the wealth effect of housing market under the impact of housing preference and technical shock more significant, which can effectively prevent economic hard landing risks caused by housing preference shock and technical shock;（3）the implementation of macro-prudential policy will make the wealth effect of housing market under the shocks of monetary policy and inflation less significant, which cannot effectively prevent economic hard landing risks caused by monetary policy and inflation shocks.

Social Capital, Government Performance and Economic Growth: Evidences from China

Cui Wei

2018, 0(03):  159. 

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By making use of China’s data, this paper conducts a theoretical analysis and empirical study of the relationship between social capital, government performance and economic growth on the basis of the traditional interpretation framework. On the one hand, the improvement of social capital can promote economic growth significantly. The development of social capital is beneficial to the inter-personal cooperation, so that the optimal social results can be achieved through the collective action. On the other hand, government performance may be the channel, through which social capital can play a role in affecting economic growth. Higher level of social capital can stimulate government officials to have strong sense of responsibility and provide high quality policy supply, which can promote economic growth significantly while improving government performance. The policy implication of this paper is to provide a new perspective for the research of China’s economic development, i.e., setting up a perspective of social structure and social characteristics, in addition to the economic perspective.