Table of Content

15 February 2018, Volume 0 Issue 02

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Cross-Listing, Equity Restriction and Enterprise Cost Stickiness

WU Si1, CHEN Zhen2

2018, 0(02):  158. 

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Based on the resource adjustment activities of enterprises, this paper employs the binding theory to analyze the impact of cross-listing on the cost stickiness of Chinese enterprises. The empirical results show that cross-listing has significantly reduced the cost stickiness. It indicates that cross-listing can put Chinese enterprises in better market environment, information environment and supervised environment, and the self-serving behavior of the management can be effectively restricted. It is also found that, compared with companies with higher equity balance degree, the companies with lower equity balance degree can have a larger scope of reduced cost stickiness when cross-listed. Compared with the companies with non-conspired equity restriction, the companies with conspired equity restriction will have a larger scope of reduced cost stickiness when cross-listed. This indicates that, as the internal mechanism of the enterprises to supervise and restrict the management, equity restriction can affect the governance effect produced by the binding effect.

Reform of Mixed Ownership, Optimal Proportion of State-Owned Shares and Industrial Added Value

ZHANG Rui，JIANG Xu-han

2018, 0(02):  160. 

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Taking China’s solely state-owned industrial enterprises during 1999-2007 as the research objects, this paper empirically tests the relationship between the reform of mixed ownership, the proportion of state-owned shares and the industrial added value. The results show that compared with the solely state-owned enterprises that have not carried out the reform of mixed ownership, the state-owned enterprises after the reform have higher industrial added value. There is an inverted U-type relationship between the proportion of state-owned shares and the industrial added value, and the optimal proportion of state-owned shares is 46.6%. Further studies show that during the mixed ownership reform, we should still take state-owned capital as the principal, and the optimal proportion of state-owned shares should be increased to be 56.7%. While in the mixed ownership reform of small and medium-sized state-owned enterprises, the non-state-owned capital should be put in a dominating position, and the government intervention on the production and management activities of enterprises should be minimized.

Measurement of the Technical Content of China’s Manufactured Products Export and Its Cross-Border Comparative Study: Based on the Forward Decomposition Method of Trade Added Value

YUAN Zheng-Yu, ZHENG Le-Kai, WANG Qing-Chen

2018, 0(02):  161. 

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Today, as global value chain develops in depth, any export products of a country, in most cases, is made up of many intermediate parts produced by other countries, and the technologies and values are shared by many countries. To measure the domestic value content and the technical content of the export products of one country, it is necessary to start from the input of the practical features. Based on the OECD’s country-specific input-output data issued in 2015 and combined with the trade added value forward decomposition method, this paper conducts an evaluation of the trade volume and the technical content of China’s manufactured products export as a whole and the 16 sub-sectors. The findings show that whether on the overall level or on the industrial level, the export volume of China’s manufactured products measured by this method is far lower than that of the traditional customs statistics. The complexity of export technology of China’s manufactured products is showing a clear upward trend, whether as a whole or according to the factor types, and the gap between China and the developed countries in Europe and America is gradually narrowed.

Measurement on Export Product Quality of China’s High-Tech Industry and Its Cross-Border Comparative Research

LIU Hong-duo, ZHANG Jian-wu

2018, 0(02):  162. 

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Based on the BACI micro-trade database, this paper adopts the method of demand information regression inference to comprehensively measure the export product quality of China’s high-tech industries over the period of 1995-2013 from the three levels of overall, industry and product, then it makes a horizontal comparison with the major advanced economies and the emerging market economies. The result shows that: (1) the overall export product quality of China’s high-tech industry presents a periodical changing characteristics of “sharp rise-fluctuation shock” during the sample period, i.e., it firstly has a tendency of rising sharply between 1995 and 2004, then the phenomenon of alternative rising and falling even sharp fluctuations appears; (2) the product-level study indicates that the export quality of China’s high-tech products generally shows a sign of improvement, but the pace of improvement in recent years has slowed down. (3) the industry-level study indicates that the export product quality of almost all of the high-tech industries shows significant fluctuation characteristics during the sample period, the export product quality of some of the industry declines in varying degrees, while the export product quality of other part of the industry shows a upward trend in the twisted fluctuations. (4) the cross-border comparison shows that the export product quality of China’s high-tech industries stays at the middle or lower reaches compared with the advanced economies, there is still a big gap between China and the USA, Japan and Germany; but compared with the emerging market economies, the export product quality of China’s high-tech industries is superior to that of India, equivalent to that of Mexico and Brazil, but always lags behind Russia and so on.

Field Research of Institutional Investors, Corporate Characteristics and Enterprise Innovation Performance

YANG Ming-jing, CHENG Xiao-ke, LI Hao-yang

2018, 0(02):  163. 

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Taking the data of the listed companies in Shenzhen stock exchange from 2013 to 2015 as samples, this paper explores the relationship between the institutional investors’ field investigation and the enterprise innovation performances. The results show that institutional investors’ investigation can improve the innovation performance. When the heterogeneity among the investors is distinguished, the securities companies can not only play a role of supervision in promoting the listed companies to carry out substantial innovation, but also induce the listed companies to carry out strategic innovation so as to cater to investors’ demand for innovative conception. The publicly offered funds, the privately offered funds and the insurance companies would focus more on the substantial innovation of the listed companies; their supervision can promote the substantial innovation of the listed companies, but not induce strategic innovation. Furthermore, in the companies with more agency conflicts and worse information transparency, the field investigation of institutional investors will play a more important role in promoting enterprise innovation.

Should Monetary Policy Focus on Labor Force Participation Rate? A TVAR Model Test Based on Financial Accelerator Effect

LUO Zuo-yan

2018, 0(02):  164. 

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Through introducing the labor force participation rate into the Taylor rule which contains the financial conditions index, this paper carries out a test of the financial accelerator effect with TVAR model. The findings show that the labor force participation rate has a stronger impact on the interest rate; in turn the interest rate has a certain degree of impact on the labor force participation rate. This indicates that to introduce the labor force participation rate target into the monetary policy framework of China’s multi-target system has the foundation of experiences and facts. In order to improve the labor force participation rate, it is necessary to solve the current periodic problems through the conversion period factor in the monetary policy, to promote the development of the medium-sized enterprises and private entrepreneurs through concessional loans and so on, and to lay particular emphasis on the labor-intensive enterprises and industries and the tertiary industry through the credit policy, so as to relieve the income disparity between regions and the development differences. In addition, the monetary policy as well as other macro-policies may moderately encourage the development of the vocational education and training; and combined with the policies of appropriate retirement postponing, it can enlarge the economically active population and increase the labor force participation rate.

A Study of the Role of Corporate Social Responsibility in Brand Crisis

CHEN Tong, QING Ping, TU Ming

2018, 0(02):  165. 

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Although the previous researches have discussed the role of CSR in brand crisis, it still remains unclear that what is the function of CSR and its internal mechanism in different types of brand crisis. In order to study this issue, this paper examines the functional mechanism of CSR in different brand crisis. With two brands of agricultural products as examples, this paper conducts two empirical tests. The conclusion is as follows: in value-related crisis, CSR has a negative impact on the brand equity; in function-related crisis, CSR has a positive impact on the brand equity; and in value-related brand crisis, the corporate hypocrisy is playing a mediating role in the relationship between CSR and brand equity.

Does Internet Finance Affect the Non-Interest Income of Commercial Banks?

ZHAO Sheng-min, LIU Xiao-tian

2018, 0(02):  166. 

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Based on the panel data of 94 commercial banks in China during 2011-2015, this paper makes use of the Internet Finance Index constructed with the method of text mining to analyze the impact of the development degree of Internet finance on the general non-interest income, fees and commission income, and trading income of various commercial banks. The results of the empirical analysis show that in the samples as a whole, the development of Internet finance has significantly reduced the general level of non-interest income of commercial banks; the main reason is that the competition effect brought forward by the development of Internet finance has exceeded the technology spillover effect. As for the classified samples, the non-interest income and its constituents of state-owned commercial banks, joint-stock commercial banks and local commercial banks are under different impacts from the development of the Internet finance. These differences are mainly due to the differences in the technical level, customer maintenance and risk tolerance of commercial banks.

Is the Generalized Laffer Curve Valid in China? An Empirical Analysis Based on Provincial PSTR

GUAN Chao1, BI Sheng2, HU Yuan-cheng3

2018, 0(02):  168. 

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There may exist an inverted U-shaped relationship between the fiscal revenue ratio and the economic growth rate, which is termed as the generalized Laffer Curve. Through constructing a theoretical model, this paper adopts the method of panel smooth transition regression (PSTR) to conduct an empirical analysis. The findings show that the generalized Laffer Curve does exist in China; between the fiscal revenue ratio and the real GDP growth rate there is a non-linear relationship with one threshold value and two kinds of systems, and this relationship is of the inverted U-shape. Within a reasonable domain of definition, the fiscal deficit ratio will change together with the optimal value. By carrying out a robustness test on the full aperture fiscal revenue that includes the governmental fund income, the operating income of the state-owned capital and the social security fund income, it draws the conclusions that are consistent. The positions of the U-shaped curve and the optimal values are different in different provinces; the advanced provinces should adhere to the idea of “small government”, handing the decision-making power of resource allocation over to the market. The theoretical optimal value of fiscal revenue is somewhat lower than the real average value. Therefore, the structural tax reduction and the proactive fiscal policy are favorable for the continuous growth of Chinese economy.

Division of Inter-Governments Powers and Expenditure Responsibilities: Logic Way, Institutional Guarantee and Matching of Rule of Law

MA Wan-li

2018, 0(02):  169. 

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The report of the 19th National Congress of CPC clearly puts forward that“a fiscal relationship between the central government and the local governments should be established, which has clear powers and responsibilities, coordinated financial resources and regional homogenization.”In order to effectively improve the division of powers and expenditure responsibilities between governments, it is necessary to systematically study its logical approach and stress the institutional guarantee and the matching of rule of law. As for the logic way, the adjustment of the expenditure responsibility is the starting point of the inter-governments power configuration; to rationalize the relationship between the central government and the local governments is the horizontal dimension; the distinction of the levels of public goods is the vertical dimension; and the transformation from the horizontal-vertical distinction into the multiple interactions is the end link. As for the institutional guarantee, it is necessary to establish the principle of the matching operation between financial resources and expenditure responsibilities, to integrate the added-value tax, the income tax and the tax returns, to establish the mechanism of local tax sharing package, to up-shift the expenditure responsibilities, to reduce the scale of inter-governments transfer payment, and to establish a transfer payment structure with the balanced fund-allocation as the principal and the one-piece fund-allocation as the subsidiary and the earmarks as the lowest. As for the matching of rule of law, it is necessary to improve the fiscal system and the systems of laws and regulations, to establish a modern government budget system, to construct a fiscal system that is ruled by law, and to construct a legalized power allocation mode.

Spatial Spillover Effect of Knowledge Potential Energy on Regional Technological Innovation Efficiency under the Institutional Proximity

TAO Chang-qi, PENG Yong-zhang

2018, 0(02):  170. 

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By decomposing the knowledge potential energy into the three dimensions, i.e., stock of knowledge resources, ability of knowledge creation and transformation, capacity of knowledge assimilation and retention, this paper constructs a spatial weight matrix based on the institutional proximity level, so as to conduct a theoretical analysis of the role of knowledge potential and its three dimensions in regional technological innovation under the institutional proximity. Then it makes use of the spatial Tobit model to make an empirical test. The results show that the impact of the knowledge creation and transformation ability, the stock of knowledge resources and the capacity of knowledge absorption and retention on the regional technological innovation efficiency is significantly positive, and these three impacts are in descending order. The former two are endogenous driving force of innovation. The main limiting factor of the spatial spillover effect of knowledge potential energy is the institutional environment rather than the geographical environment, the higher the level of the regional institutional proximity, the smaller the loss of potential energy spillover. The knowledge potential energy has a positive spatial spillover effect on technological innovation.

The Negative Impacts of Non-Real Estate Enterprises’ Investments in Real Estate Industry on Their Total Factor Productivity: An Empirical Study Based on the Data of China’s A-share Listed Companies

HE Shan-shan

2018, 0(02):  172. 

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Theoretically, the investments of non-real estate enterprises in the real estate industry would harm the development of the real economy, because their investments in the real estate industry would reduce their R&D input in their main business, which would in turn reduce the growth rate of the enterprises’ TFP. Based on the data of China’s A-share listed companies from 2003 to 2015, this paper makes an empirical study, of which the results have verified it. This paper adopts three kinds of methods to measure their TFP and conducts a regression analysis respectively. The results all show that the investments of the non-real estate enterprises in the real estate industry have reduced their TFP. When the endogeneity is controlled, the results remain valid. Finally, the counterfactual analysis also shows that if the enterprises that have invested in the real estate industry choose not to invest in the real estate industry, their TFP would increase significantly. If the enterprises that have no actual investments in the real estate industry choose to invest in the real estate industry, the changes of their TFP would be not significant. This shows that to curb the housing bubble will be conducive to the development of the real economy.