Table of Content

15 September 2017, Volume 0 Issue 09

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The Impact of Internet on International Trade: Intensive Margin or Extensive Margin

MENG Qi

2017, 0(09):  221. 

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Internet can reduce the transaction costs in foreign trade, but it is still unknown from which path it can affect the trade. This paper tries to quantify the impact of Internet on international trade. The results show that Internet has a positive impact on international trade. The higher the Internet penetration of the exporting country is, the greater the bilateral trade flow is, the trade growth effect of Internet penetration of the exporting country will be 13.2 percent; the major cause lies in the increase in the export prices. When the trade growth effect of Internet penetration of the importing country is 10.5 percent, the cause will be the increase in trade quantity. This study also finds out that when both trade parties have a higher rate of Internet penetration, Internet will have a positive effect on export flow, extensive margin and intensive margin, and the impact of the Internet penetration on bilateral trade is different with different types of products.

An Analysis of the Influence of the Changes of the Two-Position Structure on the Two Kinds of Management Agent Costs

ZHANG Rui, LI Nan-hai

2017, 0(09):  222. 

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A scientific establishment of the president-CEO structure and how to reduce the cost of management agent have always been hot issues in the researches of the accounting theoretical cycle. This paper makes use of the sample data of A-share listed companies from 2010 to 2014 to investigate the influence of the changes of the two-position structure on the costs of direct agency and indirect agency of the management, and the regulation effect of the level of rule of law on the two relationships as well. The findings show that the decentralized changes in the two-position structure can significantly reduce the direct agency costs and the indirect agency costs of the management. While the centralized changes of the two-position structure can significantly increase the direct agency costs of the management, but no influence on the indirect agency costs of the management. The results of further analysis show that the influence of the decentralized changes of the president-CEO structure on the direct agency costs and indirect agency costs of management only works in the enterprises located in the areas with lower level of rule of law, i.e., the lower the level of rule of law, the greater the impact of the decentralized changes of the two-position structure on the two kinds of agency costs of the management will be. But the level of the rule of law does not affect the relationship between the centralized changes of the president-CEO structure and the two types of agency costs of management.

Can State Audit Improve National Governance Effectively?

WANG Yong-hai, WANG Jia-xin

2017, 0(09):  223. 

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Public power supervision, transparent government and national governance modernization is not only the hot topic of the current social concern, but also the closely attended research subject among the national audit academics. Taking the public power supervision as the starting point, this paper makes use of the data of China’s 31 provinces, autonomous regions and municipalities from 2006 to 2014 to conduct an empirical test of the effect of the state audit on the improvement of national governance ability. The findings show that public power supervision can exert a path effect on the state audit service for the national governance. Through the public power supervision, the state audit can effectively reveal the irregular and illegal acts in the process of the use of public power. Meanwhile, the handling and penalties made by auditing agencies can provide the decision-making sections with relevant and reliable audit information, so as to improve the institutional deficiencies and fill the management loopholes in the national governance system, thereby effectively enhancing the national governance ability. In addition, the path effect of the public power supervision has regional differences; compared with the central and western regions, the state audit in the eastern region has a stronger effect on the improvement of national governance ability. Further study shows that the institutional environment can ensure the implementation of the work of the state audit, which can help the state audit further enhance the national governance capacity.

Internet Endogenous Trade, URL Linked Data and Growth Marginal Effect: Theoretical Model and Empirical Evidences from China

ZHANG Yi-Fang

2017, 0(09):  224. 

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In recent years, Internet has become one of the most important factors affecting international trade. In order to promote the transformation and upgrading of China’s export, it is of great significance to conduct an in-depth analysis of the marginal effect of export growth under the conditions of internet endogenous trade, which could help us find the new growth point of export. Through the extension of the basic framework of Melitz’s model (2003) and endogenizing the impact of Internet on the trade, this paper tries to discuss the impact of Internet on the ternary margins of export growth. Then it takes the date of China’s 21 main export areas from 2005 to 2015 as the samples to conduct a variable inspection of the results from theoretical model. The findings show that Internet could increase the range of China’s export growth and quantity margin, while at the same time, decrease the price margin; and its impact on the range of export growth is even significant. Therefore, we should pay enough attention to the problem of how to strengthen the construction of China’s enterprise networks, especially the construction of the networks of foreign companies, and how to enhance China’s export growth in the manner of quick turnover and wide sale by taking the advantages of the convenient conditions created by the Internet network.

Family Control, Family Member Involvement and Internal Control

ZHOU Mei-hua1, LIN Bin2, LI Wei-wen2

2017, 0(09):  225. 

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Based on the two types of agency problems, this paper studies the issue of internal control in family-owned firms. The results show that family-owned firms exhibit higher quality of internal control among private enterprises. The quality of internal control will become higher when the position of CEO or the other positions are held by the family members. The results of further investigation suggest that the higher the degree of separation between ownership and controlling right, the lower the quality of internal control. When the family members hold the position of CEO or the other posts, the negative effect brought about by the separation between ownership and controlling right would become much worse. Moreover, if the position of CEO is held by non-family members, the quality of internal control is lower, but if it is held by family members, the quality of internal control will be improved. This research conclusion can contribute to the extension of the relative literatures on ownership structure and internal control.

Government Regulation, Dividend Payment of State Owned Enterprises and Enterprise Innovation

GAO Wen-liang1, LUO Hong2, PAN Ming-qing1

2017, 0(09):  226. 

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Based on the institutional background of government regulation on state owned enterprises, this paper conducts an empirical test on the relationship between government regulation and the financial decisions of state-owned enterprises, the dividend irrelevance theory and the hypothesis of managerial myopia by making use of the data of China’s state-owned listed companies from 2008 to 2015. The findings show that the regulation has distorted the financial decisions of the state-owned enterprises; the state-owned enterprises with lower degree of government regulation have stronger dividend paying intension and higher dividend paying level. Further study reveals that the enterprises controlled by the central government are more involved in R&D activities than the local state-owned enterprises; and the state-owned enterprises with stronger willingness to pay dividends and higher proportion will make more R&D decisions, the proportion of innovation investment is also higher. The central government’s control has strengthened the relationships between the two. These study results have rejected the dividend irrelevance theory and the hypothesis of managerial myopia, and have provided support to the implementation of standards for the R&D costs conditional capitalization. This study also provides empirical evidences to the relevant contents of the Guiding Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of State-Owned Enterprises and policy suggestions for further deepening the reform of state owned enterprise.

Research on the Influence of Foreign Exchange Risk Hedging and Marketalization Process on Corporate Value: Taking Overseas Construction Enterprises of China as an Example

XIAO Chao, XIAO Ting

2017, 0(09):  227. 

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Foreign exchange hedging would result in the changes of corporate values, and such changes would present differences among different regions. Based on the data of 235 overseas construction enterprises from 2011 to 2015, this paper makes an empirical test and finds out that there is a positive correlation between foreign exchange derivatives and corporate values, while between the degree of foreign exchange risk hedging and the corporate value the correlation is not linear but U-shaped. Further analysis shows that the corporate inflection point in higher marketized regions will appear earlier than that in lower marketized regions. This conclusion can support the idea that enterprises should increase the use of foreign exchange derivatives as a financial instrument to a certain degree in the process of the exchange rate risk management. At the same time, they should speed up the development of the foreign exchange derivatives market and the reserve of talents in the lower marketized regions.

Social Cooperation Dilemma and Governance Strategy in the Voluntary Supply of Public Goods

XU Biao1, ZHANG Xun2

2017, 0(09):  228. 

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The cooperation dilemma is a major issue faced by the voluntary supply of public goods, there are three kinds of governance ideas: the first is the governance from the perspective of the yield structure, including the two strategies: expanding the yield gap between the investment of all members and the non-investment of all members, and reducing individual greed and fear inclination; the second is the governance from the perspective of organization, including the two strategies: the selective motivation and the reduction of the number of members in autonomous organization; the third is the governance from the perspective of relationship, including the following four strategies: increasing communication, establishing long-term relationship, promoting conditional trust and facilitating the members to comply with the principle of reciprocity. The above-mentioned three types of governance are complementary with each other, through the integration of the three governance ideas, the administrative departments, the autonomous organizations and the individuals can all play its roles fully in the governance of the cooperate dilemma, so that the social cooperation dilemma in the self-regulation of public goods can be better resolved.

A Study of the Implementation Intention of the Employee Stock Ownership Plan and Its Effects

SUN Ji1, ZHANG Wang-jun1, ZHOU Yi2

2017, 0(09):  229. 

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Through studying the characteristics, motivations and market effects of the companies which carry out the Employee Stock Ownership Plans (ESOPs), this paper finds out that such plan can satisfy the motivation of “signal transmission” and “financing restriction”, namely, the companies with strong profitability and seriously under-estimated share prices can have larger probability to carry out the ESOPs, while companies with higher level of financing constraints are more inclined to carry out the ESOPs in the manner of non-public offering. The findings also show that there is a significant positive correlation between the listed companies carrying out the ESOPs and their performances. Meanwhile, the announcement of ESOPs has a significant positive share-price effect, but the market would make relatively lower evaluation on the plans which use higher leverage. The conclusions of this study have provided references and suggestions for the improvement of the incentive and restraint mechanism of ESOPs and the supervision of the capital market.

The Debate on the Fiscal Discipline Attribute under China’s Strategic Adjustment

WANG Qing

2017, 0(09):  230. 

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The new positioning of finance is not proposed by the Third Plenary Session of the 18th CPC Central Committee from a theoretical consensus in the fiscal academic circle, but from a new demand on the fiscal development after a new strategic judgment is made according to the present domestic and international dynamic developments. This naturally triggers a debate on the discipline attribute of the fiscal science. The findings of a in-depth analysis show that the practical development demand under China’s strategic adjustment, the demand of the new national strategy implementation and the demand of the innovation of fiscal system are the underlying causes which stimulate the controversy about the discipline attribute of the fiscal science and tend to make it a inter-discipline science. Therefore, we should take advantage of this controversy, clarify that finance is the core element for the implementation of national strategy, strengthen the understanding of training of fiscal talents and enrichment of the fiscal interdisciplinary studies during the process of the discussion of the discipline attribute of the fiscal science.

Rise of Housing Prices, Bubble Degree and Crowding-Out Consumption

FU Dong-ping

2017, 0(09):  231. 

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The rising housing prices have dual effects on household consumption, which are wealth effect and crowding-out effect. This paper conducts an empirical analysis by making use of the data of China’s 30 provinces (municipalities and autonomous regions) during the period of 2000-2015. The results show that the rise of housing prices can restrain the growth of consumption demand, but the rising prices of different real estate types have different crowding-out effect on consumption demand. The crowding-out effects on consumption in the order from higher to lower price rising are as following: residential commercial housing, commercial housing, office commercial housing and industrial commercial housing. Further study takes the housing-price-to-income ratio to measure the bubble degree, which is also used as the threshold variable, so as to study its impact on the crowding-out effect. The results show that no matter the housing-price-to-income ratio is higher or lower, the rise of housing prices would restrain the consumption growth. However, the crowding-out effect of rising housing prices on consumption has a significant threshold effect on both sides of the housing-price-to-income ratio when it is 6.607, and the crowding-out effect will be much stronger once the threshold value is overtaken.

A Study of the Nonlinear and Heterogeneity Influence of High-Speed Railway on the Real Estate Prices

ZHANG Ming-hong, ZHANG Qing-yuan, LIANG Ruo-bing

2017, 0(09):  232. 

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As one of China’s important transportation infrastructure constructions, the high-speed railway construction can exert significant influences on the real estate prices. Based on the panel data of 2245 premises around the stations of 13 major cities along the Beijing-Shanghai high-speed railway from 2005 to 2014, this paper tries to analyze the influence of the high-speed railway on the real estate prices by constructing a triple difference model. The findings are that: (1) the construction of high-speed railway can really raise the prices of houses along the high-speed railway significantly, however, within a certain distance, this promotion effect would decrease gradually with the increase of the distance, which is mainly reflected during the period of railway construction; (2) there exists a significant heterogeneity in the influence of high-speed railway on the real estate prices; specifically, the promotion effect of high-speed railway is more significant on cities with higher house prices, larger population and larger economic aggregate than on cities with lower house prices, less population and smaller economic aggregate.