Table of Content

15 November 2017, Volume 0 Issue 11

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Theory and Empirical Study of Modern Macroeconomics: A Review of Macroeconomics

LIU Ning-jie, JIE Xiao-wen

2017, 0(11):  195. 

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International Vision of Top Management Team, Implementation of Corporate Social Responsibilities and Corporate Value

LI Shi-gang

2017, 0(11):  197. 

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The internationalization of top management teams (TMT) has become a hot issue in corporate governance. To discuss the impact of internationalization of TMT on the implementation of corporate social responsibilities and corporate value can further understand the governance capabilities of an internationalized top management team. Through hand collection of the data on the internalization version of the TMT of China’s listed companies during the period of 2008-2014, this paper empirically examines the impact of the internationalized vision of TMT on the CSR implementation and corporate value. The findings show that the international vision of TMT has contributed significantly to the fulfillment of CSR and enhanced the corporate value. The implementation of CSR is at least an intermediary channel between the international vision of the TMT and the corporate value. After a series of sensitivity tests, the above-mentioned conclusions are still valid. This result shows that international vision of TMT has a strong governance effect.

Has Executive Excess Compensation Affected Corporate Debt Financing

HUANG Song-qin, WU Li-hua, XU Cong-bao

2017, 0(11):  198. 

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This paper systematically investigates the influence of the disputed factor, i.e., the issue of executive excess compensation, on corporate debt financing and its action mechanism, as well as the moderating effect of such factors as external institutional environment and internal governance mechanism on the relationship between the two. The findings show that in the state-owned holding enterprises the excess executive compensation is negatively correlated with the level of corporate debt financing significantly. The action mechanism of excess compensation is that due to the existence of internal control problem, there are salary manipulation phenomena by the executives in state-owned enterprises. There is non-incentive-linked upside-down relationship between the excess compensation grabbed and corporate performance, but the governance effect played by corporate debt has significantly enhanced the sensitivity between executive compensation and performance, and improved the difficulty of manipulating salaries by executives. This indicates that the relationship between the two matches the salary-defense hypothesis in state holding enterprises, namely, the executives with higher excess compensation tend to accept the financing strategy of reducing debt financing while increasing commercial credit, so as to carry out legitimacy defense for their seeking excess compensations. But there is no evidence showing that such a phenomenon exists in non state-owned holding enterprises. Further study also finds that some measures can effectively inhibit the irrational intervention of executives with excess compensation on debt financing decisions in state-owned holding enterprises, including the development of the external formal institution (degree of marketization) and the informal institution (trust environment) environment, the enhancement of the independence of the board of directors, and the improvement of the internal governance mechanism concerning the shareholding ratio of the management.

Quality of the National Transport Infrastructure for the Belt and Road Initiative and Export of China’s Goods

CUI Yan, YU Jin-ping

2017, 0(11):  199. 

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Theoretically speaking, the quality improvement of the transport infrastructure along the Belt and Road countries could affect China’s export of goods through the trade creation effect, trade diversion effect and trade substitution effect. This paper makes use of China’s export data of HS6 product level to the 52 countries along the Belt and Road in 2014 to analyze the impact of the quality of transport infrastructure along the Belt and Road countries on China’s goods export based on the gravity model. The empirical results show that the quality improvement of the transport infrastructure of the Belt and Road countries is to the benefit of the growth of China’s goods export. The improvements in the quality of roads, railways, ports and aviation infrastructure of the countries along the Belt and Road can all contribute to China’s export of goods. The quality improvement of transport infrastructure along China-Mongolia-Russia, China-Singapore, China-Suez and New Eurasian Continental Bridge Economic Corridor has generated positive impact on the export of Chinese goods. However, the improvement of transportation infrastructure in the economic corridor of BCIM has no significant impact on China’s exports.

Impact of High-Speed Railway on Urban Industrial Agglomeration along the Line: An Empirical Analysis Based on the Panel Data from the Cities in Central China

LU Fu-cai, ZHAN Xian-zhi

2017, 0(11):  200. 

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This paper introduces the variable of high-speed railway into the research framework of new economic geography so as to construct a theoretical model of the influence of high-speed railway on the industrial agglomeration of the cities along the lines, and then it puts forward some relevant assumptions. Based on the data of 80 prefecture-level cities in the central six provinces, it adopts the different-in-different method and the mediating effect method to conduct an empirical test on the relevant assumptions. The results show that the opening of high-speed railways has a significant and robust promoting function on the increase of industrial agglomeration degree, and this function will be strengthened with the increase of the number of high-speed railways. The industrial agglomeration effect of high-speed railways is only significant in the cities with a population size of less than 500,000, and the effect is the strongest. The high-speed railway is beneficial to the industrial agglomeration of private enterprises, while to the industrial agglomeration of state-owned enterprises there is a reaction function. The high-speed railway would change the degree of industrial agglomeration of the cities along the lines through affecting the mobility of industrial labors.

Spatial-Temporal Evolution of Location Choice of China’s Civil Aviation Transportation Enterprises and Its Cause Analysis

HU Yu-chen1, WU Xiang-yang1, WEI Ze-yun2

2017, 0(11):  201. 

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This paper collects the spatial location data of civil aviation transportation enterprises in 34 provinces, municipalities and autonomous regions in China in 2000, 2008 and 2016. Then it adopts the overall autocorrelation and partial autocorrelation methods to study the agglomeration of civil aviation transportation enterprises in China. It is found that the degree of concentration of civil aviation transportation enterprises in China is gradually deepening, the phenomenon of high-high agglomeration is extending from the central to the south and north ends, and the phenomenon of high-low aggregation is extending from Hainan and Guangdong towards the coastal provinces. The economic space spill effect of the civil aviation transport enterprises is remarkable. In addition, the metrological analysis with the panel data shows that, according to the different types of market demands, the locational choice of civil aviation transportation enterprises in China can be divided into such types as the tertiary industry-oriented, the tourism-oriented, the logistics-oriented and the comprehensive. The comprehensive supportability factor of the airports has a significant positive impact on the development of the civil aviation transport enterprises. There exists a competitive relationship between the regional highway and railway development and the development of civil aviation transport enterprises.

The Influence of Job Characteristics on Employee Entrepreneurial Behaviors: With Work Affect as a Mediated Variable

LIN Jin-yan, TANG Yan-zhao, BAI Yun-tao

2017, 0(11):  202. 

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Whether corporate internal entrepreneurial strategy can be put into practice lies in the carrying out by the employees. Based on the job characteristics model, the affective events theory and Maslow’s Hierarchy of Needs, this study constructs a model of job characteristics affecting internal entrepreneurial behavior with work affect as the intervening variable and material incentive satisfaction as the moderating variable, on which an empirical analysis is conducted with 1426 valid samples from questionnaire surveys. The results reveal that job characteristic has a significant positive impact on employee entrepreneurial behavior, that work affect can play a partial intermediary role between job characteristics and internal entrepreneurial behavior, and that employee’s satisfaction with material incentive can not only moderate the relationship between job characteristics and employee’s positive affect, but also enhance the mediation effect of the positive affect.

The Empirical Influence of Selection Bias on Asset Pricing Puzzles: An Analysis of China’s Stock Markets

LIU Jun-wei, WANG Yi-ming

2017, 0(11):  203. 

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The equity premium puzzle and the risk-free rate puzzle have different performance in different markets. Starting from the three choice dimensions, i.e., time frequency, consumption variable and utility preference, this paper systematically explore the performances of the equity premium puzzle and the risk-free rate puzzle in China’s stock market. The findings show that the selection biases of time frequency can generate an abnormal time discount rate and affect the conclusion of the risk-free rate puzzle; while the selection biases of time frequency and consumption variable can easily lead to the over estimate of the risk aversion degree in China’s stock market, affecting the judgement of the equity premium puzzle. Under the HFU preference and GEU preference, there is no equity premium puzzle or risk-free rate puzzle in China. China as a whole is different from the western mature markets, there is no risk-free rate puzzle. Although there exists the equity premium puzzle in terms of basic sense (CRRA preference), the stability is not enough. Therefore, whether the preference of China’s investors can be accurately depicted has become the key to the stable establishment of the equity premium puzzle in China.

Allocation of Special Transfer Payment on Civil Affairs from Central Government: Impacts from Local Administrative Forces

CHEN Zhi-guang

2017, 0(11):  204. 

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Central government’s special intergovernmental transfer payment or intergovernmental subsidy is the core institution designed to balance regional fiscal capabilities and equalize public services. Based on the data from Civil Affairs Departments, the findings of this study show that administrative factors such as the number of local jurisdictions, the number of the employees of the civil affairs departments and the provincial decentralization in civil affairs departments have significantly impacted the central government’s special item subsidy that the local government received, which indicates that departmental and bureaucratic interests have penetrated the allocation process of special purpose funds for civil affairs. Therefore, in order to improve the allocation work of China’s various special transfer payments, it is absolutely necessary to optimize political contents like the system besides the improvement of technical contents such as measurement and calculation. The important improvements include the following: further improving the tax sharing fiscal system, better matching the administrative power and the financial power of the governments at different levels, enhancing the transparency degree of the allocation and use of financial funds, facilitating mutual supervision and civil supervision, establishing and improving various accountability mechanisms such as political and administrative ones, and normalizing and institutionalizing such work as making statement beforehand and taking responsibility afterword, etc..

Investor Sentiment, Capital Regulation and Currency Substitution

LIU Jin-quan, CHEN De-kai

2017, 0(11):  205. 

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After the modification of the traditional currency substitution model, the empirical results show that investor sentiment and capital regulation are important factors affecting the degree of China’s currency substitution and that both a decline in the degree of capital regulation and a rise in investor risk aversion will lead to the rise of China’s currency substitution rate. Further analysis with the methods of impulse response and variance decomposition has found that besides the self fluctuation of currency substitution, investor sentiment is the leading factor resulting in China’s currency substitution rate fluctuation, while the impact of capital regulation on currency substitution is very weak and the contribution rate is very low. Therefore, the monetary authorities should pay close attention to the changes in investor sentiment, strengthen properly the short-term capital regulation, and prevent currency substitution risk caused by risk aversion from impacting China’s monetary policy adjustment and economic development. At the same time, the long-term capital account liberalization policy should always be insisted on, so as to seek more global welfare gains.

Performance Budgeting: Budget Governance Based on Good Governance

JIANG Wu-zhen, LI Qi-cheng, GUO Chuang-tuo

2017, 0(11):  206. 

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The performance budgeting is regarded as the value target and measurement standard of the budget governance as the good governance. The basic connotation of the good budget governance determines that performance budgeting should be result-oriented, taking the performance evaluation as the core and decentralization as the means, while constrained by performance accountability. For this reason, the performance budgeting reform in China should not only improve the laws and regulations system, clarify the relationship between the results of the performance evaluation and the fund allocation, build a scientific financial incentive system and continuously strengthen the performance accountability, but also reflect the value pursuit of the good budget governance. It should both have the external expression of the good budget governance and its spiritual connotations.

Strategy of Eastern Region Taking the Lead in Development and Promotion of Total Factor Productivity: An Empirical Analysis Based on PSM-DID Method

ZHANG Cheng1,2, CHEN Ning2, ZHOU Bo2

2017, 0(11):  207. 

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The findings of the study of the strategy of the eastern region taking the lead in development are as follows: (1) the eastern region is ahead of other regions in the growth rate of total factor productivity, which relies mainly on the rapid increase of technical progress; (2) the strategy of the eastern region taking the lead in development can improve the total factor productivity by 0.83% annually, and improve the technical progress, pure technical efficiency and scale efficiency by 0.43%, 0.21% and 0.02% respectively; (3) the impact of the strategy has typical regional heterogeneity. Eight provinces have been able to benefit from this strategy and have achieved continual upgrading of their total factor productivity, with eight, seven and six provinces having achieved continual upgrading in technological progress, pure technical efficiency and scale efficiency respectively; (4) the strategy of the eastern region taking the lead in development can promote the total factor productivity through the relative increase of the proportion of foreign direct investment, the proportion of import and export and the degree of marketization, and the relative decline of energy consumption intensity and industrial proportion.

New Connotation of China’s Moderate Economic Development in the Context of the New Normality: Analysis and Enlightenment

WANG Zhan-xiang

2017, 0(11):  208. 

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It is of great significance for the underdeveloped countries to keep a faster path in their economic development in order to fundamentally improve their people’s living standards and to catch up with the advanced and developed countries even with a “frog jump” type. “To shift and slowdown”China’s economic development in the context of the new normality would arouse the suspicion of “slowing down before becoming rich”. It is necessary to grasp the lower limit of moderately development from the difference between moderate development and moderate growth. Moderate development is more focused on the improvement of economic growth efficiency, the formation of technological progress path conducive to structural optimization and the enhancement of the economic growth intensification. Resolving excess capacity does not necessarily lead to a decline in the pace of modest development, nor is slowing down a label for the new normality. Therefore, it is necessary to give a full play to the advantage of China’s unique complete industrial system, so as to further promote the steady and faster development of China’s economy in the process of industrialization.