Table of Content

15 May 2017, Volume 0 Issue 05

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Strategy Structure, Strategy Implementation and Business Risks: An Analysis of Business Risks Based on the Financial Statements

ZHANG Ting-ting, ZHANG Xin-min

2017, 0(05):  269. 

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Based on the traditional ratio analysis, this paper combines corporate strategy with financial statement information to reveal corporate strategic structure risks and strategy implementation risks. As for strategic structure, the relative scales between corporate productive assets and investment assets can reflect the strategic intention and mode of business expansion. To analyze the gross profit rate, the inventory turnover ratio and other ratios of the productive assets can reveal the risks of business productive assets, to analyze the industrial structure, profitability structure, ownership structure and strategic synergy of the investment assets can reveal the risks of business investment assets. The relative scales between enterprise liability and equity financing can reveal the corporate dynamic mechanism, to analyze the debt and equity financing structure in the financial statements can reveal the risks of corporate excessive financing, the inertia interdependence risks and the corporate governance risks. As for the strategy implementation, the analysis of the enterprise income statement and the cash flow statement can reveal the risks of mismatching between the corporate profit structure and the cash flow structure, the risks of the net cash flow being unable to support corporate strategy, and the risks of mismatching between the corporate business structure and the strategic structure.

Supply Chain Relationship, Nature of Property Right and Dynamic Adjustment of Working Capital Financing Structure: Based on an Analysis of the Prosperity in Different Industries

SUN Lan-lan, WANG Zhu-quan

2017, 0(05):  270. 

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Taking China’s A-share listed manufacturing companies during the period of 2004-2014 as the research samples, this paper conducts an empirical analysis of the relationship between the supply chain relationship, the nature of property right and the dynamic adjustment of working capital financing structure under the prosperity of different industries from the perspective of dynamic adjustment for the first time. The findings show that the decision-making of business working capital financing structure is a dynamic decision-making process weighing on the risks and costs. The adjusting speed of the working capital financing structure is subjected to the impact of the supply chain relationship and the nature of property rights; the enterprises with higher supply chain concentration ratio and the state-owned enterprises usually have faster adjustment speed. Further study finds out that the above-mentioned impacts are restricted by the extent of industry prosperity; during the industrial recession, the enterprise would quicken the adjustment speed of the working capital financing structure.

The Impact of New-Energy Automobile Industry Promotion Policy on Patent Activities of Automobile Enterprises: Based on the Study of Corporate Patent Application and Patent Transfer

HE Wen-tao, XIAO Xing-zhi

2017, 0(05):  271. 

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Through collecting the number of patents and new models of new-energy automobiles applied by automobile manufacturers between 2006 and 2015, this paper conducts an empirical study of the impact of being accepted into the promotion catalogue of new-energy automobile on the enterprises’ patent activities. The results of the DID estimation show that in the initial period of the publication of the promotion catalogue, the number of patents of new-energy automobiles applied by the enterprises included in this catalogue is not increased significantly. Only along with the implementation of the policies, did the effects gradually appear over time. When the dynamic panel is further used to estimate the patent transfer, the results show that if the enterprises have applied new-energy automobile patents, they would transform them into new models as soon as possible, and the ratio of the currently launched new-energy car model would be influenced by the previous ratio of new models. Those results reflect that although the new-energy automobile promotion policy focused on sales end subsidy can stimulate the enterprises to apply more patents, it also encourages them to quicken the speed of patent transfer in order to gain the subsidy continuously. They may only seek to bring their new products into the market quickly, thus some enterprises would even forge false sales volume to gain subsidies by cheating.

Can Negative List System Promote Industrial Structure Adjustment? Circumstantial Evidences from the Natural Experiment of China’s Administrative Permission Law

LING Yong-hui1, ZHANG Yue-you2, XU Cong-cai2

2017, 0(05):  272. 

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Since the pilot negative list system practiced in Shanghai FTZ in 2013, the “negative list” has become one of the hottest economic phrases in recent years. By making use of the panel data of China’s 31 provinces (municipalities and autonomous regions) from 1997 to 2014 and the incident of the introduction of the Administrative Permission Law in 2004, this paper constructs a natural experiment to examine the relationship between the negative list and the industrial structure adjustment. The findings indicate that in general the negative list system is helpful to promote China’s industrial structure adjustment through incremental investments, but it is more in favor of providing a positive effect on the speed of the industrial structure adjustment, while the effect on the quality of the industrial structure adjustment is uncertain. When the deviation-share method is adopted to decompose the quality of industrial structure adjustment, it is found that the negative list is in favor of realizing the “structure-bonus” in the industrial structure adjustment through the incremental investment in the tertiary industry, but the “structure-burden” in the industrial structure adjustment cannot be thoroughly eliminated.

On the Construction and Measurement of Dual Mental Model for Chinese Employees in the Context of Innovation

CAO Yuan-kun, Xiong Li

2017, 0(05):  273. 

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Individual duality is the construction footstone of dual organizational feature scenario; however, the academic world is still confused in their cognition about its generation mechanism. Combined with Chinese context, this paper puts forward the construction of a dual mental model. From the perspective of psychological-interrelated sciences, it performs a vertical analysis of the multiple implications of the dual mental model with a focus on the innovation context. It carries out a questionnaire survey on 689 innovation-related Chinese employees. It also develops a three-dimension measuring tool for the dual mental model, which opens a new path to the study on the individual dual level.

An Empirical Study of the Formation Mechanism of Consumers’ Green Purchase Intention: Interaction between Green Advertising Appeal and Consumers’ Self-Construction

MAO Zhen-fu1,2, YU Wei-ping1, LI Yu-xuan1

2017, 0(05):  274. 

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To encourage consumers to purchase green products is the key to achieve ecological sustainable development. From the perspective of green advertising appeal and consumers’ self-construction, this paper conducts two experiments to explore the formation mechanism of consumers’ green purchase intention. The results suggest that green advertising appeal and consumers’ self-construction have an interactive effect on purchase intention, namely, compared with rational appeal (emotional appeal), consumers with independent self-construction (interdependent self-construction) have a higher purchase intention towards emotional appeal (rational appeal). Consumers’ environment involvement plays a regulatory role in the joint impact of green advertising appeal and self-construction on consumers’ purchase intention, namely, for consumers with higher (lower) environment involvement, green advertising appeal and self-construction have an insignificant (significant) interactive effect on consumers’ purchase intention. Consumers’ perceived greenwash can mediate the interaction of green advertising appeal and self-construction on consumers’ purchase intention.

A Study of the Performance of Actively Managed Open-Ended Fund and the Systematic Risks of Position

SUN Bing-wen, LIN Hai

2017, 0(05):  275. 

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It is of great theoretical and practical significance to conduct an evaluation of China’s securities investment funds from a multi-dimension perspective. This paper adopts the six-factor model under different market conditions to perform a comprehensive evaluation of the performance of China’s actively managed open-ended stock-type fund and the mixed type fund as well as the trading capacity from the three dimensions, i.e., fund returns, fund holdings and fund transactions. The findings show that China’s actively managed open-ended stock-type funds can yield earnings after risk adjustment, while the elasticity of the mixed-type fund in adjusting stock positions can help fund managers demonstrate their market timing abilities. The research findings from applying the six-factor model to examine the performance of China’s actively managed open-ended fund can provide some useful references to the investors who need risk diversifications.

How Bank Connections Alleviate Financing Constraints: Direct Mechanism or Indirect Mechanism

DENG Ke-bin

2017, 0(05):  276. 

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Bank connections (BC) are intuitionally deemed to be an effective method to mitigate corporate financing constraints (FC). However, due to the fact that greater mutual interference between bank connections and political connections exists in the corporate financing constraints, and there exists significant endogeneity between bank connections and financing constraints, the theories and empirical researches based on the emerging countries are still far from sufficient. By making use of a unique research design which takes the BC-FC association into consideration, this paper proves that the relaxation effect on corporate financing constraints by China’s bank connections is subject to the strict constraints of political connections. For companies with political connections, bank connections can make them even better by further alleviate the corporate financing constraints; while for companies without political connections, bank connections cannot play a role of alleviating financing constraints. Therefore, political connections are the prerequisite for the role-playing of bank connections. The bank connections have no significant relaxation effect on the financing constraints among private enterprises, but they do have significant effect among SOEs. Thus it can be seen that bank connections in China are playing a role in alleviating corporate financing constraints by means of indirect mechanism, not direct mechanism.

Local Government Competition, Fiscal Pressure and Local Budgeting Scientificity: An Analysis Based on Provincial Panel Data

FENG Hui

2017, 0(05):  277. 

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Budgeting scientificity is one of the core requirements of the modern budget system. By making use of the provincial panel data from 1997 to 2014, this paper studies the relationship between local government competition, fiscal pressure and local budgeting scientificity. The fiscal competition among local governments is to the disadvantage of tax revenue growth; there is a negative correlation between the two. Fiscal competition makes local governments bear heavy fiscal pressures; during the course of budget implementation, local governments would use the identity of land monopoly provider in order to seek excess revenue and adjust the initial budget. There is a negative correlation between the fiscal pressure in the budget year and the deviation between the initial and final budgets. The growth pressure of fiscal expenditure beyond the budget year does not involve the annual budget adjustment; there is a positive correlation between the two. Therefore, it is necessary to clear and regulate the regional preferential tax policies, to optimize actively the structure of fiscal expenditures, and to strengthen the budget supervision function of the National People’s Congress.

How Fiscal Competition Behavior of Local Governments Influences Inter-Provincial Capital Flows?

ZHANG Liang-liang, YANG Jun

2017, 0(05):  278. 

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The Chinese fiscal decentralization system has encouraged local governments to take the way of fiscal competition, so as to fight for the floating capital outside the region. This paper makes use of the provincial panel data from 1995 to 2014 to analyze the influence of local government fiscal competition behavior on inter-provincial capital flows. The results show that to blindly increase the local fiscal expenditure cannot produce the effect of inviting investment, but only a little positive spillover effect on the surrounding areas. Only the fiscal expenditure in the field of social livelihood is the key point of local government expenditure competition. The increase of fiscal revenue has a significant negative impact on capital inflows, but to increase appropriately the non-tax revenue will weakly promote net capital inflows. Therefore, it is not feasible to attract domestic capital by means of fiscal competition. It is necessary both to emphasize the decisive role of market mechanism in the process of resources allocation and to adjust the structure of fiscal revenues and expenditures and the appraisal mechanism for local officials.

Socioeconomic Status and Community NIMBY Effect: A Perspective of Urban Citizens on the New Generation of Migrant Workers

LI Xing-hua1, CAI Wan-huan2, CHEN Ming3

2017, 0(05):  279. 

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Taking the urban survey data as the sample, this paper measures the community not-in-my-back-yard effect of the urban residents on the new generation of migrant workers and focuses on the influence of the urban residents’ social and economic status on the community NIMBY effect of the new generation of migrant workers as well as its transmission route. The results show that: (1) the urban residents have a 18.4% range of the community NIMBY effect on the new generation of migrant workers; (2) urban residents with such six social demography attributes as women, marital experiences, fertility experiences (especially their children are not yet grown up), local urban native, older age and longer time in urban life would have higher probability of occurrence of the community NIMBY effect; (3) with the improvement of such social and economic status as urban citizens’ education level, family gross annual income, work unit stability and subjective socioeconomic status, the probability of occurrence of community NIMBY effect would be significantly increased in general; and (4) part of the evaluation made by urban residents on the new generation of migrant workers is playing an intermediary role in the influence of their socioeconomic status on the community NIMBY effect. Through positive exchanges and necessary help, to improve the urban residents’ opinion towards the new generation of migrant workers in terms of personal quality evaluation and social contribution evaluation would be the key to break the positive correlation between the higher socioeconomic status of the urban residents and the higher tendency of community not-in-my-back-yard.

Dynamic Features of China’s Inflation Expectation and Its Policy Implications

XU Wen-li1, CHENG Jian-hua2

2017, 0(05):  280. 

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Inflation expectation is one of the leading factors influencing the current and future inflation, but the inflation expectation in China has greater volatility, which can directly affect the implementation effect of the inflation management policies. By applying the ARMA- GARCH models, this paper makes an empirical analysis of the dynamic features of China’s inflation impacts and its expectation. The results indicate that: (1) rational expectation and inflation inertia are separate factors influencing inflation, and the disturbance on inflation shows such characteristics as inertia, periodicity and cyclical hysteretic nature; (2) the shocks from inflation expectation has the feature of inertia, and the actual inflation impact would affect the stability of the inflation expectation; and (3) the inflation fluctuation has an asymmetric effect on the stability of inflation expectation, and it is more sensitive to the negative actual inflation fluctuation. The results of the above analysis present such policies suggestions for inflation management that the government can realize its inflation target only through the way of expectation guidance, but it has to adopt prudent inflation management policies.