Table of Content

15 January 2018, Volume 0 Issue 01

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Choice of Managerial Equity Incentive Methods and Risk Taking: From the Endogenous Perspective

QIU Qiang1,2, BU Hua1, CHEN Jian2

2018, 0(01):  171. 

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Taking the companies which bring equity incentive into force during the period of 2006-2013 as samples, this paper adopts the Heckman method to measure the management risk preferences with the inverse Milz ratio; then it analyzes the relationship among management risk preference, equity incentive, and risk taking. The results show that the management risk preference is significantly correlated with corporate risks, that is, the management with risk preference is more inclined to take stock option incentive, while the management with risk aversion tends to restrict stock incentive. In the case of the management risk preference variables being controlled, the stock option incentive still has risk incentive effect, while the restricted stock has no risk incentive effect. Then this paper further analyzes the incentive effects of different equity incentives in companies with different property rights. The results show that in the companies implementing stock options, the risk incentive effect of state-owned enterprises is weaker than that of private enterprises, while in the companies implementing restrictive stocks, there is no significant difference between the state-owned enterprises and private enterprises.

Can Official Visits Relieve Corporate Tax Burden? Empirical Evidences from China’s Listed Companies

HONG Qun1, DAI Yi-yi2

2018, 0(01):  173. 

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Taking China’s A-share listed companies during the period of 2004-2014 as the samples, this paper empirically examines the influence of official visits on corporate tax burden with the hand-collected data of official visits. The findings show that official visits can significantly relieve corporate tax burden. Compared with the enterprises visited by non-officials, the enterprises visited by officials have lower applicable tax rate and real income tax rate. Further study shows that the tax burden relieving effect of official visits is not only affected by the nature of property right and the implementation of the new Law of Corporation Income Tax, but also has differences due to the “top leader”mechanism and the different visiting purposes, i.e., the tax burden effect of official visits exists only in non-state-owned enterprises and companies with reformed tax system. Compared with the visits of non-Party and government leadership members, only the visits of the Party and government leadership members can relieve the tax burden on enterprises. The inspective and investigative visits of the instructive officials can significantly relieve enterprises’ tax rate, while the checking and supervising visits of the supervising officials can induce heavier tax burden on the enterprises.

Government Subsidy, Market Entry and Enterprise Profits: Technical Effect and Anticompetitive Effect of Government Subsidy

XU Zhi-wei, GUO Shu-long

2018, 0(01):  174. 

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Based on a simultaneous equation model, this article analyses the relationship among the government subsidy，market entry and enterprise profits. And on this basis, it examines the technical effect and anticompetitive effect that may be brought forward by government subsidy. The findings indicate that due to the influence of the “poverty relief” subsidy and the “door-to-door subsidy” entry, in most cases the government subsidy has worsened the profit performance of the incumbent enterprises, which are caught in the vicious circle of “more lose more subsidy, more subsidy more lose”. Even if the profits of the incumbent enterprises can be improved by the high-intensive government subsidy, it mainly attributes to the high administrative barriers?limiting the market entry of the potential enterprises, not to the technical progress. Under almost all the subsidy strength, the higher administrative entry barriers and discriminatory choice of the subsidy objects make government subsidy have a relatively strong anticompetitive effect, thus the technical effect has never been given a full play.

Resource Allocation, Technical Innovation Efficiency and Linkage Overcapacity of Emerging Industry: An Empirical Analysis Based on China’s Photovoltaic Industry

BAI Xue-jie, YU Zhi-qiang

2018, 0(01):  175. 

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From the perspective of resource allocation redundancy, this paper constructs the mechanism model of the influence of the production and innovation dual resource allocation efficiency on the overcapacity of emerging industries; then it discusses such influence on the linkage overcapacity of emerging industries by bringing demand factors into the model. Taking the photovoltaic industry as an example and making use of the market demand-supply ratio, it measures the capacity utilization rate of the industry as a whole and its three links, and quantitatively measures the resource allocation efficiency and technological innovation efficiency and their impact on the capacity utilization rate. The findings show that the improvement of the capacity utilization rate of the photovoltaic industry depends on the improvement of the production and innovation dual resource allocation efficiency; the resource allocation efficiency mainly has a positive impact on the capacity utilization rate of the upstream and downstream enterprises, but due to the increase of supply, it has negative impact on the capacity utilization rate of the middle-stream enterprises; the technological innovation efficiency has an obvious positive effect on the capacity utilization rate of the downstream enterprises, however, due to the structural adjustment, it failes to have positive effects on the improvement of capacity utilization of the upstream and middle-stream enterprises in the short term.

A Study of the Relationship between Customer Concentration and Corporate Donation: Based on Resource Dependence Theory and Transaction Cost Theory

WU Fang

2018, 0(01):  176. 

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Based on the resource dependence theory and the transaction cost theory, taking the listed companies in Shanghai and Shenzhen A-share markets as samples, this paper theoretically analyzes and empirically tests the impact of customer concentration on corporate donation and its internal mechanisms. The findings indicate that the higher the customer concentration, the lower the level of corporate donation will be. With the increase in product uniqueness, customer concentration would have a stronger impact on corporate donation. In state-owned enterprises, the strength of the impact of this kind of relationship is weaker than that in non-state-owned enterprises. In areas with better institutional environment, the impact of customer concentration on corporate donation is stronger. The conclusions of this study can effectively explain the differences between the willingness and behaviors of corporate donations; meanwhile it reveals the importance of customer concentration on corporate behaviors.

A Study of the Impact of Political Connections on the International M&A Performance of Chinese Enterprises

QI Chao-shun, DU Xiao-jun

2018, 0(01):  177. 

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The relationship between political connections and enterprises internationalization has always been the focus of the academic circle and business world. Based on the institutional theory, taking the international mergers and acquisitions (M&A) events completed by listed companies in Shanghai and Shenzhen A share markets from 2004 to 2014 as samples, this paper conducts a systematical analysis of the impact of political connections on international M&A performance of Chinese enterprises, and at the same time examines the moderating effects of the host country experience and organizational slack of enterprises on the relationship between political connections and international M&A performance. The empirical results show that there is a significant negative correlation between political connections and the international M&A performance of Chinese enterprises. Host country experience of Chinese enterprises can weaken this negative effect; while the moderating effect of organizational slack has not been verified.

Do Foreign Investors Decrease the Stock Price Crash Risk in Emerging Markets? Evidences from Shanghai-Hong Kong Stock Connect

HUA Ming, SUN Qian

2018, 0(01):  178. 

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From the perspective of foreign investors in the advanced markets expecting improvements of the corporate information environment in the emerging markets and reducing market speculation, this paper takes the advantage of the policy shock of Shanghai-Hong Kong Stock Connect to investigate the influence of foreign investors on the stock price crash risks. The results show that Shanghai-Hong Kong Stock Connect has indeed reduced the stock price crash risks of the underlying stocks; as for the stocks that are not traded by foreign investors before Shanghai-Hong Kong Stock Connect or that are traded actively by foreign investors after Shanghai-Hong Kong Stock Connect, the effect of Shanghai-Hong Kong Stock Connect is all the more significant. If the company has a higher level of earnings management, foreign investors can play a more active role in improving the company’s information environment, and the stock price crash risks can be more significantly reduced. It is mainly through the information trading system, not the supervising system, that the foreign investors can reduce the stock price crash risks. Therefore, it is of great significance to promote the further opening-up of the capital markets, so as to improve the market transparency and capital allocative efficiency, and enhance the capability of the capital market to serve the real economy.

A Study of the Survival Law and Policy Simulation of P2P Platform Based on Survival Model

BA Shu-song1, HOU Xin-yu1, ZHANG Shuai2

2018, 0(01):  179. 

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In order to improve P2P platform supervision and avoid the platform risks, this paper takes the 3176 P2P platforms revealed by Online Lending House as the research samples to study the survival law of P2P platforms by following the paradigm of the duration model. The main conclusions are as follows: firstly, the P2P platform risks are not unchangeable; it generally follows the basic form of rising first and then decreasing. Secondly, the Cox model shows that the mortality of P2P lending platforms are significantly affected by such factors as the registered capital, registration place, shareholders’ background, business models, and so on; the competitive risk model shows that the registered capital, the third-party supervision and other concomitant variables have significant differences in their impact on the survival state of P2P platforms. Finally, the situation transformation regression simulation shows that the five supervising measures, i.e., increasing the registered capital requirements, the mandatory third-party custody of customer funds, prohibition of day-object, the mandatory risk reserve and the mandatory third party guarantee or mortgage, can all extent the survival time of the P2P platforms, but there are significant differences in their supervising effects. Therefore, it is recommended to raise the industry threshold and suppress the running-away risks, meanwhile, to strengthen the business guidance so as to promote the healthy development.

Fiscal Transparency, Media Attention and Governmental Governance Efficiency

ZHAO He-yun

2018, 0(01):  180. 

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This paper makes use of the panel data of 31 provincial governments to conduct a systematical analysis of the action mechanism and effects of financial transparency and media attention on the governmental governance efficiency. The findings show that fiscal transparency has a significant positive effect on governmental governance efficiency; and this effect is much more obvious when media attention is introduced, that is, the level of fiscal transparency is improved when media attention is introduced, which lead to more efficient governmental governance. Therefore, in order to improve governmental governance efficiency and promote the modernization of the national governance system and the governance capacity, it is necessary to formulate scientific and normative standards for government financial information disclosure, to promote practically local governments’ enthusiasm for improvement of fiscal transparency, and to give full play to media attention.

Has Fiscal Decentralization Promoted or Restricted Public Environmental Expenditure? An Empirical Analysis Based on China’s Provincial Panel Data

XIN Chong-chong1, ZHOU Quan-lin2

2018, 0(01):  181. 

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Public environmental expenditure is an important means to achieve ecological protection and environmental governance, while the fiscal decentralization system is a key factor affecting the preferences of government expenditures. In order to further identify whether fiscal decentralization has negative incentive towards the public environment governance of local governments, this paper makes use of China’s provincial panel data from 2007 to 2015 to explore the impact of China’s fiscal decentralization on public environment expenditures from the two dimensions of income decentralization and expenditure decentralization. The results show that both fiscal decentralization and expenditure decentralization are significantly and negatively correlated to public environmental expenditures, which verifies that the current fiscal decentralization system has some problems in the public environmental governance of local governments, such as distorted stimulations, insufficient restrictions, and so on. Therefore, in order to promote the green development and build a beautiful China, it is necessary to improve the institutional environment, the relationship between the central and local governments, the transfer payment system, the regional cooperative governance model and the environmental protection concept.

Shadow Banking, Real Estate Market and Macroeconomic Fluctuations

MA Ya-ming, WANG Hong-shan

2018, 0(01):  182. 

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Based on the financial accelerator, price friction and investment costs, this article brings the shadow banking and the real estate market into the dynamic stochastic general equilibrium model, uses the Bayesian method to estimate the structural parameters of the model, and at the same time, analyzes the impact of financial and physical shocks on China’s shadow banking, real estate market and macroeconomic variables. The results of the variance decomposition show that the interest rate shock is an important factor leading to the changes of China’s housing prices and the sizes of shadow banks; while the productivity shocks can explain the fluctuations of such variables as real estate size, inflation, and investment growth. The impulse response results show that both types of the shocks will make housing price and shadow banking scale presenting an opposite trend. The results of the welfare analysis show that the monetary policies which keep a watchful eye on house price volatility and macro-prudence can improve social welfare.

Theories and Practices of China’s Industrial Green Development: Policy Options for Deepening the Green Development

SHI Dan

2018, 0(01):  183. 

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The shortage of development space caused by the restriction of resources and environment is the main obstacle hindering the industrial development. Since the 18th CPC National Congress, China has made great achievements in its fundamental policies for the green development, so it is with the domestic theoretical researches concerning the green development. At present, energy transition and low-carbon industrialization are two core issues of China’s industrial green development. To deepen the supply-side structural reform is the new impetus for China’s industrial green development. After the 19th CPC National Congress, the reform direction and measures include: (1) creating a fine market environment for industrial green development; (2) increasing government support for R&D of the basic, advanced and common technologies in the emerging green industries; (3) optimizing industrial layout and strictly prohibiting new major industrial projects at areas with vulnerable ecology and water resource shortage; (4) focusing on the solutions to the environmental issues, such as air and water pollution, greenhouse gas emissions, etc.; (5) In the process of industrial “going global” and participating in the “Belt and Road Initiative”, we should actively establish the image of China’s industrial green development; and (6) industry should make new contributions in the new journey of building an all-round socialist modern nation.