Table of Content

15 February 2017, Volume 0 Issue 02

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Institutional Investors’ Heterogeneity, Accounting Conservatism and Debt Capital Costs

LI Zhen-guang1,

2017, 0(02):  306. 

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Taking China’s A-share listed companies during 2007-2014 as research samples, this paper employs C-Score model to measure the corporate accounting conservatism, so as to examine the impact of accounting conservatism on the debt capital costs. The results show that the accounting conservatism is positively correlated with the debt capital costs, which is a new type of relationship not conforming to the existing academic literatures. It further investigates the impact of the institutional investors with different natures on the relationship between accounting conservatism and debt capital costs. The results indicate that the stable institutional investors can intensify the positive correlation between accounting conservatism and corporate debt capital costs.

The Relationship between the Asset Injection through Private Placement and the Major Shareholders’ Subscription Ratio and Their Corporate Performance

ZHANG Wei-dong, ZHAO Xing-xin, LI Si-lei

2017, 0(02):  307. 

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It has become a popular issue of common concerns in the society that listed companies inject assets through private equity placements for tunneling. Taking the listed companies from the stock markets in Shanghai and Shenzhen which injected assets through private equity placement from January 1, 2008 to December 31, 2013 as samples, this paper empirically examines the relationship between the assets injection through private placement and the major shareholders’ subscription ratio and their corporate performance. The results show that when the relationship between the assets injection through private placement and the original assets of the issuance companies is stronger, the proportion of private placement shares subscribed by the major shareholders will be higher. The further improvement of share proportion held by the major shareholders can be in favor of strengthening the control power of the major shareholders in the company, making the major shareholders play a better role in supervising the managers, thus the agent costs of the managers can be reduced and the corporate performance after assets injection can be improved. Therefore, investors and the securities regulatory departments should attach importance to the quality of the injection assets through private placement in order to protect the interests of investors.

The Impacts of Intellectual Property Rights Protection on the Ternary Margins of China’s Export Growth

WENG Run1, DAI Zhong-qiang2

2017, 0(02):  308. 

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Since the signing of Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs) in 1994, intellectual property protection has been receiving more and more attentions from countries around the world. The role of intellectual property protection in international trade is also gradually becoming prominent with the development of the trade. By making use of the HS-6 digit trade data of China’s export to 69 countries and regions from 2005 to 2013, this paper divides China’s total volume of export into extensive margin, price margin and quantity margin. Based on the decomposition, it analyses both theoretically and empirically the impact of intellectual property rights protection on the ternary margins of China’s exports. Then it is found that intellectual property protection has a promoting effect on the extensive margin and the quantity margin of China’s exports, but no significant influence on the price margin.

Structural Adjustment of Manufacturing Industry and Changes of Comparative Advantage: Conforming or Deviating

LI Qiang

2017, 0(02):  309. 

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Structural adjustment of manufacturing industry is an important measure in China’s structural reform of supply side. However, during the process of structure adjustment in the manufacturing industry, whether to follow or deviate from the path of comparative advantage evolution has an important impact on the upgrading of manufacturing industry. By making use of the data from the Commodity Trade Statistics Database of United Nations, this paper constructs a spatial distribution map of the world products, based on that it draws a dynamic evolution path of China’s comparative advantages, so as to make an empirical analysis of the relationship between the structure adjustment of China’s manufacturing industry and the comparative advantages. The results show that the dynamic change tendency of the comparative advantages is coincide with the competitive advantages of the existing industry, but the relevancy concerning the promotion of the upgrade of the existing emerging industries is poor. The relevancy in the labor-intensive industry is higher, while in the capital and technology-intensive industries the deviation is significant. From the comparison between the countries, the structural adjustment of China’s manufacturing industry and the deviating degree of the dynamic changes of comparative advantages are more obvious than that in the economic entities of different types.

Generating and Acting Mechanism of Online Brand Community Social Capital：An Exploratory Research Based on Multiple-Case Study

WANG Jia

2017, 0(02):  310. 

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In the era of Web 3.0, great changes have taken place in the clustering mechanism and interactive process of online brand community, so the existed theory and research perspectives should be further deepened and expanded. Taking six typical cases as the samples, this paper employs the grounded theory and qualitative comparative research method to explore the consumer’s psychology and behavior when they join the online brand community and form their brand loyalty. It reveals the six categories and the logical relationship between them, which are “non-interactive participation of members”, “absence of perceived value”, “interaction”, “community social capital”, “community and brand identification”, and “brand loyalty”. It also constructs the conceptual models of the generation, composition and function process of online brand community social capital. It is found that the social capital of online brand community follows the dual generation path and affects the brand loyalty through such indirect factors as community identification, brand identification and so on. This process is also impacted by the member involvement degree, the perceived community-brand fitness, and so on.

Research on Corporate Communication Management Based on Dynamic Capability Theory

DAI Wen-bin,

2017, 0(02):  311. 

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Corporate communication is an important tool by which a corporation can gain competitive advantage in the dynamic and complex environment. Dynamic capability of a corporation is the core driving force of corporate communication management. On the strategic level, a corporation should adjust and design its corporate strategy, corporate culture and corporate communication strategy in accordance with environmental changes by means of perception, creation, integration and reconfiguration of communication resources. On the operational level, a corporation should depend on the support of organizational structure and the guarantee of information technology to facilitate the effective implementation and mutual connection of internal and external communication, so as to promote the implementation and realization of corporate communication strategy. The assessment, analysis and feedback activities of corporate communication can connect the strategic level and operational level, enacting them to form a virtuous circle.

Tax Treatment, Price-to-Book Ratio, and Ex-Dividend Date Price Anomaly

HUANG Zhi-dian, ZENG Li-yao

2017, 0(02):  312. 

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It is necessary to discuss whether tax treatment and price-to-book ratio can explain the ex-dividend price anomaly of REITs and common stocks. Differences in tax treatment may cause REITs and stocks to have different ex-dividend price behaviors. Moreover, ex-dividend events will change the price-to-book ratio, prompting investors to adjust their portfolio and affecting the prices of REITs and stocks after the ex-dividend date. This study finds that the ex-dividend price behaviors of REITs and stocks are indeed related to their tax treatment and the changes of price-to-book ratio, which is conductive to widening the research perspective of the related field and also providing valuable references for making investment strategies.

Habit Formation, Disaster Risk and Precautionary Savings: International Comparison and China’s Experience

YUAN Jing1, CHEN Guo-jin2

2017, 0(02):  313. 

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By constructing the continuous time DSGE model and considering the disaster risk factors and the formation of consumption habits, this paper adopts the waveform relaxation algorithm to study and compare the optimal consumption functions and savings rates between China and other 7 countries in the world in the face of disaster risk uncertainty. The results show that the model fitting effect is good, and the model will become more robust when the habit formation factors are blended in. The disaster risks have become a source of uncertainty affecting the changes of consumer wills of spending and savings. The changes of Chinese residents’ consumption and savings in the face of disaster risks are stronger than those in the 7 other countries around the world, the savings will of China’s residents is the highest, with the savings rate as high as 85%. The changes of China’s optimal consumption function will have a bigger gap if the habit formation is not considered, but the changes of the optimal consumption function of the other 7 countries in the world will have a narrowed gap if the habit formation is not considered. The savings will of Chinese residents is still the highest, with the savings rate up to 87%. The reason is that the formation of consumption habits is taken into consideration, thus when faced with disasters the consumers will be even more afraid of the impact of the disaster on their future life, therefore their willingness to save will be enhanced. If the government provides smaller proportion of financial subsidies, the government financial subsidies will have a very strong effect on resisting the disaster risks, and the consumer willingness to save can be effectively reduced. However, if the government provides larger proportion of financial subsidies, the results will be counterproductive.

An International Comparison of Local Government Debt Governance and Its Enlightenment: From the Perspective of the Construction of Fiscal Responsibility Rules

WANG Ting-ting

2017, 0(02):  314. 

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iversity of Political Science and Law, Chongqing 401120, China) Abstract：To better guard against financial risks brought by local governments borrowing, the local governments should be responsible for the debt when they exercise the borrowing authority, which has become an international consensus. From the international perspective, many countries have formulated fiscal responsibility legislation and established variety and multilevel fiscal responsibility rules to regulate local government borrowing behaviors during the process of governing local government debt risks, which have achieved positive results in practice. As to our country, the responsibility system for the local government debts is still far from effective at present. Therefore, it is necessary to establish a series of fiscal liability rules as the core of local government debt governance mechanisms through strengthening the budget constraints, improving the credit rating, information disclosure and risk monitoring systems and formulating strict accountability systems, so as to lead the governance of local government debts to the way of legalization.

Does Trade Openness Affect Residents’ Preference to Redistribution? Evidences from China’s Data

XU Jian-bin, YAO Lin-xiang

2017, 0(02):  315. 

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In theory, trade openness can bring significant impact on the external risks faced by residents and the income gap, thus the residents’ preference to redistribution will be affected. By making combined use of the urban data and micro-level data, this paper empirically examines the impact of trade openness on Chinese residents’ preferences to redistribution. The results show that trade openness has a significant positive effect on their preferences to redistribution. Further channel mechanism analysis finds that the trade openness affects the residents’ redistribution preference mainly by affecting the external risks faced by the residents. Therefore, in order to adapt to the new situation of globalization and to fulfill the task of anti-poverty, the government should build a social safety net to ease the risks to the residents brought by the trade openness.

Forecast and Monitoring on China’s Local Government Debt Risk during the 13th Five-Year Period

ZHANG Ping1, ZHOU Quan-lin2

2017, 0(02):  316. 

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China’s economic development has entered the new normal economy during “the 13th five-year period”, during which local government activities of financial revenue and expenditure are faced with more challenges. It can be seen from a multi-angle analysis that although China’s local government debt risks are generally under control, yet it contributes too much to the national government debt, there is almost no more space for local government debt to rise. Even the debt risks in some provinces have entered the early-warning interval. Through the forecast for the local governments fund sources to pay the debt and the debt service cost during the 13th five-year period, it can be easily seen that China’s local government debts may be faced with greater debt repaying pressure, and the risks will be increased continuously. Therefore, the task of controlling the debt risks and relieving the debt pressures should be carried out from the following two aspects: one is to enhance debt management ability, quicken the improvement of local autonomous bond issuing modes, promote the credit evaluation and bankruptcy system, and improve the debt risk warning mechanism; the other is to dissolve the stock of debts, push forward the market-oriented transformation of local financing platform, and improve the public-private partnership modes.

Mobility or Stability: A Transmission Analysis of the Intergenerational Occupational Status in China

DING Ying1, WANG Cun-tong2

2017, 0(02):  317. 

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By making use of the 2010 data of CFPS, this paper specially tests the direct impact of parental occupation status on children’s occupation choices. As for the data process, in order to obtain unbiased estimates of coefficients and standard errors, it adopts the Bayesian multiple interpolation method to fill in the dependent variable and the independent variable for the missing values of the sampling data. As for the choosing of statistic model, it applies OLS, the instrumental variable method and 2SLS to rectify the bias in the estimation. In order to select the optimal weight matrix, it employs GMM and IGMM to test the direct impact of each factor, especially fathers’ occupation, on the children’s occupation choices and the regional differences. In order to avoid the estimation bias from the sample selection, it introduces the Heckman selection model to verify the robustness of the estimation results of the instrumental variable method, GMM and other models. The results reveal that if the father generation holds higher occupational status, the children’s occupation status will be correspondingly higher, which indicates that there exists class solidification in China in term of procedure. Through the Heckman selection model, it is also found that fathers’ occupational status have a significant impact on their children’s occupation choices and the development of the children’s existing occupations. In addition, this impact also manifests regional differences, the more developed the economic level or the more opened the cultural level, the stronger the fathers’ occupational impact will be. However, the individual education level is the dominant factor influencing their occupational status.