Contemporary Finance & Economics

Spatially Stratified Urban Human Capital: From the Perspective of Heterogeneous Public Service

YANG Xiao-zhong, LUO Le

2021, 0(2): 3-14.

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If urban public services are distributed discriminatively according to whether a resident has his/her own house, the distribution of people with different skills in cities will be affected. Based on a general equilibrium theoretical framework of the interaction between population mobility and housing prices, and making use of the data of the fifth and sixth population census, this paper conducts a study on this point. The findings show that there exists a phenomenon of spatial stratification of human capital in China, and that big cities are more likely to attract higher and lower skilled people than small cities. When public services are geared to all the local residents, the increase of public services will attract both high skilled and low skilled people; when public services are exclusively for home buyers, the increase of the services will attract high skilled people but exclude low skilled people, which explains the reason why big cities attract less low skilled population in China to a certain extent. It is also found that those high skilled are more sensitive to housing prices than those low skilled, and that there exists a skill complementarity between the high skilled and the low skilled. Therefore, to promote the implementation of the policy of“people who rent or buy a house have the same right”and the reform of the household registration system, to encourage the development of housing rental industry and to guarantee the housing supply from multiple channels will help to optimize the structure of urban human capital.

Does Rural-Urban Migration Improve Farmers’ Sense of Gain? An Empirical Analysis Based on the CFPS Data

WU Yi-ping, MIN Shi

2021, 0(2): 15-26.

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Continuously enhancing people’s sense of gain is an important task for the construction of the cause of people’s livelihood of China in the new era. The transfer of agricultural labor to cities has significantly increased the income level of farmers and increased farmers’ sense of gain on the material level, but its impact on farmers’ sense of spiritual gain is unclear. Based on the data collected by China Family Panel Studies (CFPS) in 2016, this paper empirically evaluates the effects of rural-urban migration on farmers’ sense of gain by using the method of propensity score matching (PSM) and the method of counterfactual analysis. The results show that the migrant labors in cities have not only raised farmers’ income, but also improved their subjective perception of income level and their satisfaction with life, which makes farmers feel more confident about the future. However, it does not improve their subjective perception of their social status. For the farmers who do not choose to work in cities, migrant work in cities even could reduce their satisfaction with life and their subjective perception of their social status. While migrant work in cities can play an important role in improving farmers’ sense of gain in general, it is quite obvious that the effects on the farmers with different characteristics are heterogeneous.

Financial Transparency, Income Deviation between Budget and Final Accounts, and Budget Environment: An DID and Synthetic Control Analysis Based on The Budget Law of 2015

GUO Ling, WANG Yang

2021, 0(2): 27-37.

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Fiscal transparency and budget management are the focus of modern fiscal reform. Whether The Budget Law implemented since 2015 has improved the transparency of fiscal information and how it affects the income deviation between budget and final accounts are the topics worthy of in-depth discussion. By making use of the panel data of China’s 30 provinces except Tibet from 2010 to 2018, this paper evaluates the effects of The Budget Law on the income deviation between budget and final accounts in regions with different degrees of fiscal transparency, and then it further explores the action mechanism of the budget environment. The findings show that, compared with the regions with higher fiscal transparency, the regions with lower degree of transparency have greater income deviations between budget and final accounts, which is more obvious in the western region. The implementation of The Budget Law will help to reduce the income deviation, and significantly improve the income deviation between tax revenue budget and final accounts, while it is not significant for the non-tax revenue. Based on different budget environments, the effects of The Budget Law on the deviation are different: the economic environment will expand the income deviation between budget and final accounts, the regulatory environment will have a restraining effect, and the execution environment will have a dual impact. Therefore, according to the requirements of the budget system reform, it is necessary to fully refine budget management, to promote information openness and transparency, to emphasize the regional differences, to improve the budget environment, and to perfect the linkage supervision mechanism.

An Analysis of the Deviations between Budget and Final Accounts of Government-Managed Funds Revenue

LIU Chang

2021, 0(2): 38-48.

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The budget revenue of China’s government-managed funds has a long-standing systemic problem of deviations between budget and final accounts, which would lead to serious discounts on the legitimacy, normativity, scientificity and binding force of the government budget. Therefore, it is necessary to enhance the researches on the deviation degree between the budget and the final accounts of government-managed funds revenue and to analyze the major reasons and propose strategies to solve the practical problems. By making use of the panel data of 31 provincial level local governments in China’s mainland from 2010 to 2017, this paper conducts an empirical analysis of the deviation degree between the budget and the final accounts of government-managed funds revenue, as well as its causes. The findings show that the budget of China’s local government-managed funds has a systematic over-collection problem. Motivated by political promotions, China’s local officials would pursue high-speed GDP growth and strategically underestimate the expected GDP growth, which would lay the economic foundation for the budget over-collection of government-managed funds. The opportunistic motivation and the strategic behavior of the local governments are the deep-seated institutional causes of the excessive deviations between the budget and the final accounts of government-managed funds revenue. Therefore, while paying more attention to the budget management of government-managed funds, it is necessary not only to improve the level of budget management from the technological level, but also to change fundamentally the incentive and constrain mechanism on the officials of local governments, so as to completely solve the excessive deviations between the budget and the final accounts of government-managed funds revenue.

The Reward and Penalty Effects of the Green Credit Policy on Corporate Debt Financing: An Effect Evaluation Based on a Quasi-Natural Experiment

WU Hong-yi, YIN De-sheng

2021, 0(2): 49-62.

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The green credit policy aims to enable social capital to enter the green development domain and to promote the green transformation of the enterprises with high pollution, high-energy consumption, and excess production capacity. Based on the differences-in-differences model and taking the A-share listed companies in Shanghai and Shenzhen stock markets from 2005 to 2019 as the research samples, this paper verifies the impact of the green credit policy on corporate debt financing in both rewarding and punishing ways. In terms of rewarding, if the enterprises, which not belong to those with high-pollution, high energy-consumption and excess production capacity, have established business relationship with banks involving in the green credit business, their long-term or short-term debt financing scale and their maturity structure will perform better. In terms of punishing, after the release of the green credit policy, the scale of the long-term debt financing and the maturity structure of the enterprise with high-pollution, high energy-consumption and excess production capacity have decreased significantly. Further study of the heterogeneity shows that the non-state-owned enterprises have received bigger rewards, but there is no noticeable difference in the punishments on the enterprises with high-pollution, high energy-consumption and excess production capacity though they have different ownerships. The higher the financial development level and the smaller intensity of industrial pollution in prefecture-level cities, the greater the reward of the green credit policy will be; meanwhile, the bigger the debt scale of local governments is, the smaller the punishment of the green credit policy will be. The key to improving the effect of the green credit policies is to improve the level of green information disclosure, clarify the boundaries between the market and government powers and responsibilities, and relieve the ownership preference in credit resource allocation.

The Impact of Local Government Debt Governance on Bank Credit Funds“Shifting from Fictitious Assets to Real Assets”: An Empirical Investigation into the Quasi-Natural Experiment Based on the State Council’s No. 43 Document

LIANG Hu, ZHANG Heng

2021, 0(2): 63-74.

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The implementation of No.43 Document of the State Council has provided a quasi-natural experimental scenario for the researches on the governance effect of local debts. The findings show that local debt governance has no significant impact on banks’ financial assets, but it has increased total bank loans, personal loans and corporate loans, which is conductive to the“shifting from fictitious assets to real assets”of bank credit funds. Local debt governance can significantly increase bank loans to real industries, but not increase bank loans to the non-real industries or the construction industry. The findings of a mechanism test indicate that local debt governance can indirectly affect the allocation of bank credit funds by reducing personal and corporate financing costs. The result of further research shows that after the implementation of No.43 Document, banks with higher asset quality are inclined to provide more loans to enterprises and the real industries, and banks with lower asset quality are inclined to provide more personal loans. The bank size can strengthen the role of local debt governance in promoting bank loan growth. Therefore, in order to facilitate bank credit funds “shifting from fictitious assets to real assets”, it is necessary to improve the level of local debt management, strengthen the supervision and guidance of banking business, and enhance risk management, so as to ensure the quality of bank assets.

Corporate Green Development, Government Subsidies and R&D Expenditures: Also on the Corporate Ethical Development Hierarchy

WANG Zhu-quan, WANG Hui, WANG Zhen-jie

2021, 0(2): 75-87.

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At present, all circles are still in dispute over the green development idea practiced by China’s listed companies: whether it is a realistic choice out of their own economic interests or the result of a win-win game between the society and enterprises. Combining with Kohlberg’s theory of moral development hierarchy and using the data of listed companies from 2008 to 2017, this paper conducts an empirical study of the current situation of R&D expenditure and the subsidy utilization of China’s green development firms. The results show that China’s firms which practice green development idea can indeed get more government subsidies; meanwhile, these firms will launch more R&D activities. Also government subsidies are playing an intermediary role between green development and R&D expenditures. This reflects that the moral cognitive level of firms practicing green development idea has reached the second level of Kohlberg’s moral development on the whole. It is found through further research that the stronger the environmental regulation strength in the region, the more inclined such firms are to invest the government subsidies into the R&D activities, while the degree of industrial competition negatively moderates the mediating effect of the government subsidies. Accordingly, it is essential to strengthen supervision and management, and to enhance the coordination between government and market in the process of promoting the corporate green development.

The Influence Boundary and Action Mechanism of Non-Branded Information Microblogs: From the Perspective of Psychological Reactance Theory

WANG Jia, WEI Jun-ying

2021, 0(2): 88-99.

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Previous researches on microblog contents are often based on IPA, ICA and interactive style frameworks. However, few people specially set foot in the studies on non-branded information microblogs. The existing fragmented researches are mainly focusing on the effect of non-branded information microblogs on consumer interaction and ignore its action mechanism on brand equity such as brand attitude of consumers. Through one preliminary experiment and three groups of formal experiments, this paper explores the psychological mechanism of the non-branded information microblogs on consumers’ perception and its usage boundary in the social networking content strategies. The findings show that the non-branded information microblogs can alleviate consumers’ psychological resistance, provide more perceived sense of freedom and microblog account attitude, and eventually promote the brand attitude. Meanwhile, the consumer regulatory focus model has regulatory effects on this process. The conclusion of this study is conductive to enterprises to make reasonable plans and manage the non-branded information contents, and at the same time, expands and enriches the research scope and results of brand microblogs.

Labor Cost Rising and Manufacturing Industry Servicizing: Mechanism Identification and Effect Difference under the Background of Economic Policy Uncertainty

LI Huan-jie, ZHANG Yuan

2021, 0(2): 100-112.

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As an important factor driving the innovation of the manufacturing industry, the rising labor cost is playing an increasingly forceful role in the transformation of service-oriented manufacturing enterprises. Based on the hand-collected data of service-oriented A-share manufacturing listed companies from 2013 to 2018, this paper systematically investigates the impact and action mechanism of labor cost rise on the service-oriented transformation of manufacturing industry from the perspectives of embedded service-orientation and mixed service-orientation. The results show that the rise of labor cost can “force” the manufacturing enterprises to carry out service-oriented transformation, which is mainly reflected in its significant positive impact on the embedded servitization, but the impact on the mixed servictization is not significant. In particular, this “reverse forcing” effect has a significant persistence over a longer period of time, and presents U-shaped dynamic change characteristics of decline first and then rise. The result of a mechanism analysis shows that although the increase of labor cost is difficult to indirectly drive the improvement of the overall service-oriented level of manufacturing industry through information technology investment, it can promote the embedded servitization and inhibit the mixed servitization through this way. Further analysis shows that in the context of turbulent economic environment, the economic policy uncertainty has significantly increased the “forcing” effect of labor cost rise on the servitization of the manufacturing industry.

On the Measurement of the Coupling Coordination Degree of Development between the Medical Services and the Pharmaceutical Industry and the Influencing Factors

TAO Chun-hai, HU Meng, SHI Yan-xin

2021, 0(2): 113-123.

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Based on the coupling coordination degree model (CCDM), this paper firstly measures the coupling coordination degree of the development of the medical service industry and the pharmaceutical manufacturing industry in China’s 31 provinces except for Hong Kong, Macao and Taiwan by constructing an index system of coupling coordination degree. Then on the basis of a contrastive analysis of the impact of the development level of the two industries on the coupling coordination degree, it explores the affecting factors on the coupling coordination degree of the two industries and its spatial spillover effect by employing the spatial Dubin model (SDM) that incorporates the geographic matrix and the nested matrix respectively. The findings show that, since China’s new health care reform, the increase of government health investment has promoted the rapid development of the medical service industry, while the development of the pharmaceutical manufacturing industry has been relatively slow. Thus the coupling coordinated development of the two industries remains at a primary coupling coordination stage. Fixed capital investment and knowledge innovation have a positive effect on the degree of coupling coordinated development between the local pharmaceutical manufacturing industry and the medical service industry, while collaborative aggregation, government support and foreign investment have a negative role in it. The aforementioned factors all have a positive effect on the degree of coupling coordination of the development of the two industries in the neighboring regions.

Star CEO, Information Channels and Analysts’ Behavior

LIU Jia-wei, Ji Li

2021, 0(2): 124-136.

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Once becoming stars in their industries, the CEOs of the enterprises will have information effects. This paper makes use of the data of the lists of Chinese enterprises, such as the “Best CEOs”, issued by mainstream financial medias, i.e., Forbes China and Fortune China, during 2008--2017 to study the impact of corporate CEOs becoming stars within their industries on the analysts’ behaviors with the DID model. The findings show that once becoming stars, CEOs will attract more attention and focus from the news medias, thereby increasing the attention of the analysts to their enterprises and reducing the earnings forecast bias and the degree of forecast differences of the analysts. Further investigation shows that star CEOs can improve analysts’ attention and the accuracy of their earnings forecasts. The reason lies in the fact that analysts can obtain information from multiple information channels and improve information quality.

A Study of National Audit and Financial Derivatives Investment of SOEs

LIU Fang, WANG Mei-ying

2021, 0(2): 137-148.

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Financial derivatives are highly leveraged. Once state-owned enterprises fail in their investments, they will have serious negative impacts on the security of state-owned assets and the security of national economy. Taking the Announcement of Audit Findings on the financial revenues and expenditures of central enterprises issued by the National Audit Office from 2010 to 2018 for a quasi-natural experiment, this paper investigate the impacts of national audit involvement on the financial derivatives investment by the state-owned listed companies affiliated to the central enterprises with the multi-phase DID model. The findings show that national audit has inhibited the speculative trading and OTC trading of financial derivatives of SOEs, and that this effect is mainly found in companies with poor internal quality control and imperfect risk information disclosure. The result of a mechanism test shows that the national audit can restrain the risky speculative trading and OTC trading through promoting rectification and implementation. It is found through further analysis that the national audit can play a positive role in promoting the floor hedging transactions, which means that the national audit does not frustrate SOEs’ normal hedging demands.

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