Table of Content

15 July 2017, Volume 0 Issue 07

Previous Issue    Next Issue

An Empirical Study of the Influence of Local Government Liquid Assets on Its Solvency

PAN Yan, WU Xiu-yao

2017, 0(07):  245. 

Asbtract ( 220 )  

Related Articles | Metrics

Liquid assets are an important basis and guarantee for local governments to repay their debts. Then, what is the degree of effect on the solvency of local governments? Through the analysis of the concept of liquid assets and including it into the research framework together with the bond issuing costs, financial situation, local economic development and so on, this paper examines the solvency of local governments’ liquid assets and the degree of its impact. Taking the panel data of 30 provinces of the urban construction investment bonds from 2006 to 2013 as the samples, the results of the study show that the liquid assets of local governments have significant negative impact on the bond issuing costs of the governments. Further study also finds that, compared to the income and expenditure flow information, the asset stock information can better reflect the solvency of local governments. This conclusion can help to standardize the debt management of local governments and debt report reform. It is suggested that the balance sheet of local government liquid assets should be worked out separately, so that it can provide the information users with policy instrument used in decision making when dealing with the stock assets or realizable assets, and it can also provide a basis to evaluate the solvency of local governments.

Auditor’s Impaired Personal Reputation and Cost of Corporate Debt Financing: Empirical Evidences from China’s Listed Companies

JIANG Yao-ming, JIANG Heng

2017, 0(07):  246. 

Asbtract ( 183 )  

Related Articles | Metrics

Taking the punished auditors from 2000 to 2014 as the starting point, this paper systematically tests the signal value of auditor’s impaired personal reputation in the debt financing activities of the client companies. The findings indicate that auditor’s impaired personal reputation would result in the increasing of debt financing costs of the client companies, and this kind of reputation effect is more significant in private enterprise financing, which verifies the regulation value of audit’s reputation mechanism in China’s securities markets. The results of further study show that the auditor’s reputation effect would be strengthened along with the increasing of the degree of punishment, but the quality control mechanism in larger firms can remit the negative effect of auditor’s impaired personal reputation to some extent.

An Analysis and Comparison of the Characteristics and Differences between the Division Positions of China and Japan in the Global Value Chain: From a Perspective of Industry Upstream Measurement

CHEN Xiao-shan

2017, 0(07):  247. 

Asbtract ( 171 )  

Related Articles | Metrics

From the perspective of industry upstream measurement, this paper makes use of the national input-output tables of WIOD to conduct a systematic measurement and comparative analysis of the division positions of China and Japan in the global value chain during the period of 1995-2011. The results show that during the investigate period of this study, China’s overall and subdivided industries are generally located at the relative upstream links in the global value chain, with a tendency of further transferring into the intermediate input end in the global value chain. Japan’s overall and subdivided industries basically display a tendency of approaching the final use end in the global value chain. The decomposition results based on the shift-share method show that before 2003 the inter-industry effect is the main motive leading China to the downstream links of the global value chain, after that, the effect within the industries becomes the leading factor moving China into the upstream links in the global value chain. However, during the period of pushing Japan into the downstream links in the value chain, both the inter-industry and inside-industry effects are playing an almost same role.

An Analysis of the Export Trade Network Pattern of China’s Manufacturing Industry: From the Perspective of Global Value Chain

WANG Yan-fang, CHEN Shu-mei

2017, 0(07):  248. 

Asbtract ( 205 )  

Related Articles | Metrics

Based on the global value chain decomposition theoretical framework and the decomposition results, this paper applies the social network analyzing method to explore the export trade network pattern of China’s manufacturing industry from the two aspects of network characteristics and network structure. The findings show that the rapid growth of the export trade of China’s manufacturing industry has led to the prosperity of the trade of global manufacturing industry, while at the same time it has also exacerbated the asymmetry of the interdependence with the major trading partners in the trade network. The global trade network not only is a medium for China to exert its impact as a manufacturing power, but also provides a platform for China’s manufacturing industry to move forward. In the global manufacturing trade network, China has achieved the transition from the edge to the core, and its participation in the global value chain is growing at every link, making the value chain extending continuously. Thus, the impact and control of the developed countries on the global manufacturing trade has been diluted to a certain extent.

The Impact of Workplace Uncivilized Behaviors on Service Sabotage: An Interpretation from the Perspective of Moral Cognition

ZHAN Xiao-jun

2017, 0(07):  249. 

Asbtract ( 204 )  

Related Articles | Metrics

From the perspective of moral cognition, this paper explores the action mechanism of uncivilized behaviors of both supervisors and customers on the sabotage of employee’s service respectively. Through a two-stage paired survey of 216 employees and supervisors, it is found that the uncivilized behaviors of both the supervisors and the customers can all impact the sabotage of employee’s services significantly and positively, that moral disengagement can play an intermediary role in the relationship between the uncivilized behaviors of both the supervisors and the customers and the sabotage behaviors on employee’s service, and that the moral identify can not only positively regulate the relationship between customers’ uncivilized behaviors and moral disengagement, but also positively regulate the intervening mechanism of customers’ uncivilized behaviors-moral disengagement-service sabotage. The conclusion of this study can provide some theoretical references for the service enterprises to management and intervene the uncivilized behaviors.

A Dynamic Closed-Loop Integrated Model of Business Structural Organization: Based on Knowledge Logic

ZHANG Hai-yan1,2, ZHANG Zheng-tang1,

2017, 0(07):  250. 

Asbtract ( 158 )  

Related Articles | Metrics

On the basis of clearly defining the connotation and the function types of business structural organization, this paper makes use of the knowledge foundation theory to find the knowledge logic coexisting between the enterprise and its outside environment, institutional environment and social relationship networks, then it constructs an integrated model with closed loop and puts forward such a research subject: the tool engineering and knowledge technology in the external technical environment can influence corporate institutional structuralization and hierarchy structuralization through efficiency mechanism; the humanity-cognitive knowledge in the external institutional environment can influence the corporate cultural structuralization through social regulation mechanism, the regulatory knowledge can influence the corporate institutional structuralization through the forcing mechanism, the criterion knowledge can influence corporate hierarchy structuralization through the imitation mechanism; and the external social relationship network can influence corporate hierarchy structuralization through the network utility mechanism. This model can not only interpret the phenomena of business structural organization, but also provide a theoretical framework for further empirical researches.

Effects of Financial Frictions and Characteristics of Emerging Economies on China’s Monetary Policy Transmission

CHEN Shi, ZHENG Zhi, WANG Ying

2017, 0(07):  251. 

Asbtract ( 194 )  

Related Articles | Metrics

Through establishing a medium-scale open economy DSGE model with currency substitution, financial accelerator, and liability dollarization, this paper conducts a Bayesian estimation with China’s quarterly macroeconomic data. The results show that China’s monetary policy and exchange rate regime can be empirically described by a monetary policy rule in the form of a managed floating exchange rate regime. The transmission of monetary policy is under the influence of financial frictions and the characteristics of emerging economics. In turn, financial frictions and the characteristics of emerging economics would result in more active monetary policy intervention, which will weaken the role of monetary policy in stabilizing the economy, thus more welfare losses will be caused. Therefore, we should explore a series of more flexible foreign exchange policies, speed up the market-oriented exchange rate reform, and open up the domestic financial market step by step.

Asian Infrastructure Investment Bank in the Multilateral Development Bank System: A Comparative Analytical Framework

CHEN Wei-guang, WANG Huan, CAI Wei-hong

2017, 0(07):  252. 

Asbtract ( 220 )  

Related Articles | Metrics

Asian Infrastructure Investment Bank (AIIB) is a landmark achievement and institutionalized carrier for China to participate in global financial governance. As a new member of multilateral development financial institutions, AIIB embodies many aspects of innovation: in the aspect of admittance and decision-making mechanism, AIIB is a regional organization characterized in openness, containment and conforming to the democratization trend of international relations; in the aspect of governance structure, AIIB pursues simplicity and efficiency and seek to achieve the balance between mutual benefits and decision-making efficiency; in the aspect of business operation, AIIB has established a cooperative and competitive business relationship with other financial institutions, its capital structure and credibility from the member states can be conductive to its winning of AAA rating; in the aspect of performance evaluation, AIIB has innovative institutional design to reduce its administrative management cost, which can ensure the achievement of its social benefit target. In the future, AIIB should learn from the successful experiences of other existing multilateral development banks in its operation, strengthen its risk management, and improve the selection and cultivation mechanism for its employees.

Will Land Finance Lead to Labor Shortage in China’s Cities and Towns?

ZHAO Hai-yi

2017, 0(07):  253. 

Asbtract ( 194 )  

Related Articles | Metrics

Through analyzing the relationship between China’s urban real estate markets and the urban labor force markets, this paper studies the impact of the land finance policy being widely carried out by the local governments at all levels on the urban labor migration. The results show that the land finance policy being widely carried out by the local governments at all levels has a significant impact on the flow of urban labor force. The present changes in the urban real estate markets are reshaping the structure of China’s urban labor markets, leading to labor shortage in some of the urban areas. In order to resolve the problem of labor shortage in present urban labor force markets, one of the important means is to stabilize the housing prices, and try all the means to expand the supply of the low-rent housing or the public-rental housing.

PPP Government Debt Risk Management: International Experiences and Enlightenment

MA En-tao, LI Xin

2017, 0(07):  254. 

Asbtract ( 168 )  

Related Articles | Metrics

Along with the extensive application and popularization of PPP mode in the field of China’s infrastructure constructions, the government debt risks that are closely related to it should be given timely attention and prevention. However, compared to the countries with higher degree of PPP, China is still lacking practical experiences in PPP government debt risk management. When learning from the experiences and practices of foreign countries in the risk management, China should focus on such aspects as the PPP government debt risk management and institutional framework design, the PPP government debt risk supervision and assessment, the PPP government debt budgeting and accounting, and the PPP government debt information disclosure and publicity, etc., so as to guard against and manage the government debt risks that may be triggered off by China’s PPP and to give full play to the positive role of PPP in the financing of infrastructure constructions.

A Study of the Weak Form Efficiency of China’s Carbon Trading Pilot Markets from the Perspective of Thin Market

ZHANG Wu-lin, LEI Yuan, WANG Feng

2017, 0(07):  255. 

Asbtract ( 193 )  

Related Articles | Metrics

In the context of the light trading in China’s carbon trading pilot markets, this paper employs the methods of variance ratio test to carry out a weak form efficiency test on the five carbon trading pilot markets in Shenzhen, Beijing, Shanghai, Guangdong and Hubei. The findings show that if the light trading characteristics in the markets are not taken into consideration and if the daily data checking is adopted, then only Shanghai carbon trading market presents a lower weak-form efficiency, the rest markets are not weak-form efficient. When weekly data is used for testing, it is found that the carbon trading markets in Hubei and Guangdong present weak-form efficiency, the Shenzhen market is not sure, while the markets in Beijing and Shanghai present weak-form inefficiency. When the data obtained during the active trading period is used for testing, it is found that all the five pilot markets have reached weak-form efficiency by different degrees, especially since entering 2016. This indicates that China’s carbon trading pilot markets are on the way to become mature.

A Study of the Time-Varying Nature of the Driving Factors of Inflation Expectations

WANG Shao-lin1, LIN Jian-hao2

2017, 0(07):  256. 

Asbtract ( 184 )  

Related Articles | Metrics

Expectation is an important basis for future economic behaviors, and how to guide expectations has become an important issue for the central banks of every country. Based on the calculation of inflation expectations in China, through setting up the time-varying parameters model and identifying the driving factors of inflation expectations, this paper conducts an in-depth exploration into the impact of the practical policy operations of the central bank on inflation expectations. The empirical results show that the main factors affecting the inflation expectations of Chinese residents are the quantitative monetary policy, the price-based monetary policy and the actual inflation rate. However, firstly, the price-based monetary policy cannot play a reverse regulation role in a short term; on the contrary, it will worsen the inflation expectations. Secondly, the driving factors of inflation expectations have the nature of time-varying, whether in the number or in the action intensity, especially when the exchange rate does not affect inflation expectations after the exchange rate reform. Thirdly, housing prices and the imported inflation are not the factors affecting the inflation expectations of residents.