Table of Content

15 January 2017, Volume 0 Issue 01

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Enterprise Social Capital and Financial Flexibility Reserve Decision under the Macroscopic Policy Adjustment

ZHANG Gai-qing1,2, QI Huai-jin1

2017, 0(01):  318. 

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Taking all the private enterprises listed in Shanghai and Shenzhen stock markets from 2007 to 2014 as the research samples and combining the two aspects of government-enterprise relationship and bank-enterprise relationship, this paper verifies the impact of enterprise social capital on financial flexibility reserve decisions. The results show that the level of enterprise’s financial flexibility is negatively correlated with the bank-enterprise relationship or the government-enterprise relationship, i.e., the enterprise with higher level of the relationship of banks-enterprise or government-enterprise would tend to reserve lower level of financial flexibility, and vice versa. Further research finds out that when the monetary policy is tightened, the banks-enterprise relationship or government-enterprise relationship will have a more significant negative impact on the financial flexibility.

Inter-Province Mergers, Inter-Regional Resources Flow and Industrial Upgrading: An Empirical Study Based on Chinese Data

BAI Xue-jie, WEI Jing-jing

2017, 0(01):  319. 

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Industrial transfer can play a potential role in adjusting and optimizing the industrial structure through such effects as technology spillover, industrial competition, industrial linkage, and so on. Starting from the perspective of inter-province mergers, this paper makes use of China’s M&A samples during the period of 2011-2013 to conduct an empirical analysis of the industrial upgrading effect resulted from industrial transfer. The results show that industrial transfer in the form of inter-province mergers can promote the undertaking area to achieve the goal of industrial upgrading, while the degree of marketization has a negative effect on the regulation. That may be because China’s local governments try to layout the industrial structure beyond the comparative advantage principle with competitive investment-introducing policies, which accelerates the industrial upgrading process. As for the industrial upgrading in the transfer-out area, industrial transfer fails to produce a significant effect, even there is a threat of industrial hollowing in the eastern developed regions.

Cash Holdings, Financing Constraints and Nonlinear Adjustment of Capital Structure: An Empirical Study Based on Dynamic Panel Threshold Regression Model

HU Yuan-cheng, PAN Qi-di

2017, 0(01):  320. 

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Enterprises’ cash holdings are often closely related to the adjustment of capital structure. Taking the listed companies in Shanghai and Shenzhen stock markets during the time period of 2005-2014 as the research samples, this paper adopts the dynamic panel threshold regression model to empirically study the impact of cash holdings and financing constraints on the nonlinear adjustment of capital structure. The results show that the higher level of cash holdings a company has, the faster the speed of the capital structure adjustment will be, and the greater the absolute degree of deviation of the capital structure from the target capital structure will be. These relationships are significantly different under different levels of debts: when the debt is excessive, the level of cash holdings is positively correlated with the speed of capital structure adjustment and is negatively correlated with the degree of the capital structure deviation; when the debt is insufficient, the level of cash holdings is negatively correlated with the speed of capital structure adjustment and is positively correlated with the degree of capital structure deviation. Further researches find out that the impact of the level of cash holding on the nonlinear adjustment of capital structure will vary with the degree of financing constraints; however, the positive and negative relationships between them are not affected by the degrees of financing constraints.

A Study of the Impact of Industrial Policy on Firm’s Unrelated Diversification Strategy

YUAN Bo, RUI Ming-jie

2017, 0(01):  321. 

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Based on the current situation that more and more Chinese enterprises are doing diversified cross-industrial businesses, this paper discusses the guiding function and impact effect of the industrial policies on the unrelated diversification operations of the enterprises. The results show that when the policy supported business is the major business of an enterprise, the enterprise will be made to pay more attention to its major business by the subsidy effect of the industrial policy, and the expansion of the unrelated business will be reduced. This will not only encourage the enterprise to increase the innovation input but also reduce the business risks. However, when the policy supported business is not its main business, the industrial policy will stimulate the enterprise to have the desire of unrelated diversified operations through the market value effect. This will not increase the enterprise’s innovative input; on the contrary, the business risks will be increased. The unrelated diversified operations of the private enterprises are especially under the impact of the industrial policy.

The Impact of Brand Personification on Warmth and Competence: From the Perspective of Psychological Distance and Adult Playfulness

ZHOU Fei1, SHA Zhen-quan2

2017, 0(01):  322. 

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From the perspective of psychological distance and adult playfulness, this paper explores the relationship between brand personification and consumers’ cognition of warmth and competence. The empirical study of the student samples from three universities in Fujian province shows that: (1) brand personification has a significant positive influence on consumers’ cognition of warmth and competence; (2) psychological distance can play a partial intermediary role between brand personification and warmth and between brand personification and competence respectively; (3) adults playfulness can moderate the influence of brand personification on the warmth cognition, but this effect is not significant on the competence cognition. These research conclusions can provide useful management implications for the brand personification strategy of enterprises.

On the Influencing Mechanism of Feedback-Friendly Culture on Feedback-Seeking Behavior

YAN Min, FENG Ming

2017, 0(01):  323. 

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The supportive feedback environment can reduce the potential negative influences of feedbacks. Based on the human-environment interaction theory, this paper takes 439 business employees from different provinces/cities and different industries as research objects to explore the antecedent variables and action mechanism of the feedback-seeking behavior with the hierarchical linear modeling (HLM). The results show that feedback-friendly culture can positively affect the feedback-seeking behavior, in which the feedback orientation has played a partial intermediary role. A mastery orientation can significantly adjust the relationship between feedback-friendly culture and feedback-seeking behavior. The more mastery oriented the individual is, the stronger impact the feedback-friendly culture would have on its feedback-seeking behavior. However, the achievement goal orientation has no significant adjusting effect on the relationship between the two.

Small Business Financing Dilemma and Countermeasures: From the Perspective of Mismatched Financing Resources

ZHOU Lin1,2, WEN Rui1, FU Zhi-qiang1

2017, 0(01):  324. 

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Under the conditions of the separated state-owned sectors and private sectors and the mismatched financing resources between the big banks and the small businesses, it is unrealistic and ineffective to solve the financing problems for the small businesses simply relying on the existing bank-enterprise relationship. The government tries to solve the problem with administrative orders, but it is difficult to reach the expected goal. Private lending can effectively relieve the financing problem for the private small enterprises, but it is regarded as the main pushing hand for the worsening environment of the small business financing. This paper points out that the only way to solving this problem should be walking out of the misunderstandings of the arbitrarily mismatched financing between big banks and small business and clearing up the misunderstandings of private lending being the main pushing hand for the worsening financing environment. The financial system must be reformed from strict control into open control comprehensively, so as to construct a multi-resource financing platform for matched small businesses.

A Study of the Endogenous Mechanism and Periodicity of Commercial Bank NPLs: From the Perspective of the Game between Government, Banks and State-Owned Enterprises

WANG Hai-Jun

2017, 0(01):  325. 

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From the perspective of the relationship between government, banks and state-owned enterprises, this paper systematically studies the endogenous mechanism and periodic law of commercial bank NPLs. The results show that the government control on state-owned enterprises and commercial banks is the root cause of endogenous NPLs. Combined with the orientation of the central and local government performance evaluation under the fiscal decentralization system, this paper further reveals the circulation track of periodic outbreaks of NPLs. Based on that, it points out that the fundamental solution to solving the endogenousnsess and periodicity of NPLs should be pushing forward the process of reform of state-owned enterprises and banks, especially strengthening the market-oriented reform of state-owned enterprises, and gradually exploring and improving the performance appraisal and assessment methods for the local governments.

Has Urbanization and Fiscal Expenditure Promoted Public Leisure Services Supply

WU Xian-Fu1,2, YANG Yong-De1

2017, 0(01):  326. 

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By making use of the provincial panel data of China’s 31 provinces from 1999-2013, this paper tries to analyze the impact and its action mechanism of urbanization and local financial expenditures on the public leisure services supply. The results show that urbanization has different influence direction and strength on different types of public leisure services supply. The public leisure services supply with greater demand is more likely to have a positive proportion to the level of urbanization. The growth of local fiscal expenditure has not promoted the general improvement of public leisure services supply level. Only the public leisure services supply with bigger demand and more preferences from local governments has a positive proportion to the local fiscal expenditure gross. Therefore, in order to achieve more effective supply growth of public leisure services, the local governments should take necessary measures, including doing the research on public leisure demand during the course of urbanization, arranging reasonably the supply of public leisure service items, considering fully the forward-looking decision-making for public leisure services supply, attempting boldly to adopt the market-oriented supply mode, and so on.

The Influence of Income on Residents’ Environmental Awareness: Absolute Level and Relative Status

LI Wei-bing, CHEN Mei

2017, 0(01):  327. 

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In view of the deficiencies in the existing literatures that the relative income effect is often ignored in the analysis of the influence of income on residents’ environmental awareness, this paper makes use of the data of China’s General Social Survey in 2013 to conduct an empirical analysis of the impact of absolute income and relative income on residents’ environmental awareness. To explore this relation adequately, it carries out regression analysis respectively according to the regions, gender and urban-rural locations of the samples. The results show that if the relative income effect is not taken into account, the absolute income will have a significantly positive correlation with residents’ environmental awareness. Nevertheless, once the relative income effect is taken into consideration, the absolute income will still significantly influences residents’ environmental awareness, but the degree of the influence will decline. At the same time, the relative income shows a significantly positive correlation with residents’ environmental awareness, and the degree of influence is beyond that of the absolute income. Moreover, the results also prove that such factors as age, gender, education level, place of residence, health condition and politic status may exert a significant influence on residents’ environmental awareness.

A Study of Regional Fiscal Capacity, Competition for Investment and Local Government Debt Scale

LI Yi-hua, QI Yan-ping

2017, 0(01):  328. 

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In recent years, the increased scale of local government debt has become a focus issue in the development of China’s economy growth and the operation of the local finance system. This paper introduces the local fiscal capacity into the analytical model for the first time, and integrates fiscal capacity, financial deficits, soft budget constraints and economic development modes into the comprehensive research frame. Considering the double investment-inducing effect of debts and the differences between regions, it adopts the spatial econometric model to calculate the relationship between the above-mentioned factors and the accumulated local government debt scale from the total and regional aspects. The results show that fiscal capacity has a major impact on local debt scale, especially in the eastern region; while in the central and western regions, the influence of the financial deficits on the increased debt scale cannot be ignored. Therefore, according to the real conditions of each region, the following measures should be taken, such as adjusting tactically the financial distribution relation to curb the appetite for the local government debt, establishing reliable debt repayment mechanism to reduce risks, and improving the local debt system and legal restraints to promote the sustainable development of local debt.

Speeches of Experts at China’s Economists Forum 2016

2017, 0(01):  330. 

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On Labor Force Issues in Supply-Side Structural Reform: Applications and Development of Marx’s Labor Value Theory

XIAO Xiao

2017, 0(01):  331. 

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The factor of labor force is a crucial breakthrough in supply-side structural reform. The analytic paradigm of mainstream economics cannot explain the structural problems in China thoroughly due to the special determination mechanism of labor force. Starting from Marx’s labor value theory, the value composition of present different kinds of labor force can be analyzed, thus it can be drawn that the nature of structural problems lies in the constraints on the value compensation of present labor force, which results in unsuccessful realization of expanded labor force reproduction, neither can the potential of the factor of labor force be fully released. Practically, effective solutions cannot be found unless we combine the three aspects: the promotion and compensation of the labor value as well as the construction of labor relations.