Table of Content

15 March 2021, Volume 0 Issue 3

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Theoretical Economics

An Analysis of the Mechanism of the Promotion of Enterprise Productivity by the Strategy for the Rise of Central China: Based on the Breakpoint Regression Method

LI Wei-bing, LIU Mei-yuzi

2021, 0(3):  3-14. 

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As a major strategy to promote the common rise of the six provinces in the central area, the strategy for the rise of Central China has an important impact on the economic development of the Central Region. This paper conducts an empirical research with the geographic breakpoint regression method. The findings show that the strategy for the rise of Central China can significantly promote the productivity of firms in the central region. This conclusion is still valid after a series of robustness tests such as substituting variable index, performing bandwidth sensitivity test, performing execution variable manipulation test, conducting control variable continuity test and non-parametric estimation. The results of further study show that the strategy for the rise of Central China may have a positive impact on corporate productivity through increasing labor supply, attracting foreign direct investment, increasing human capital accumulation and so on. From the perspective of enterprise development, the research conclusion explains the promoting effect of the rise of Central China on the economic development in Central China, and provides new ideas for the promotion of the economic development of the central region.

The Impact of High-Speed Rail on the Quality of Enterprises’ Patents: Evidences from Listed Companies

LIAO Jin-qiu, WU Xue-fen

2021, 0(3):  15-27. 

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Transportation infrastructure has an important effect on the innovation activities of micro-units by accelerating the cross-regional flow of human resources and other innovation factors. Taking the data of Chinese manufacturing A-share listed companies as samples, this paper conducts an empirical analysis with the difference-in-differences method. The findings show that the opening to traffic of high-speed rail has significantly promoted the quality of patents of the enterprises along the line, and that the conclusion is still robust after controlling the endogeneity. The mechanism analyses show that the impact of high-speed rail on corporate patent quality is realized through knowledge diffusion effect, resource allocation effect and cooperative innovation effect. The findings of further study show that the quality improvement of high-speed rail patents has significant spatial heterogeneity and industrial heterogeneity. The high-speed rail has a more obvious effect on the patent quality of the enterprises located in regional central cities, while the impact on the enterprises located in peripheral cities depends on their geographical distance to the central cities. Compared with the low-and medium-tech industries, high-speed rail has a more significant innovation-promoting effect on the enterprises in high-tech industries.

Public Economics & Administration

The Impact of Government Subsidies and Reduction of Taxes and Fees on the Efficiency of Enterprises Innovation: An Analysis of the Threshold Effect Based on the Listed Manufacturing Enterprises

WU Hong, ZHENG Jia-xing

2021, 0(3):  28-39. 

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Since China implemented the innovation-driven development strategy, the government has put into effect a variety of policies to encourage enterprises’ innovation in terms of expenditure and revenue. By making use of the data of China’s listed manufacturing enterprises from 2015 to 2017, this paper checks the effectiveness of government subsidies and reduction of taxes and fees on the improvement of corporate innovation efficiency. The findings show that, firstly, the strength of government subsidy has a positive incentive for the innovation efficiency of manufacturing enterprises, and the actual tax burden rate has a negative incentive for the innovation efficiency of these enterprises. Secondly, the strength of government subsidy has a double threshold effect on the innovation efficiency of the manufacturing enterprises, while the actual tax burden rate only has a single threshold effect on the innovation efficiency of high-end manufacturing enterprises. Thirdly, the threshold values from the promotion of government subsidies to the innovation efficiency of high-end, mid-end and low-end manufacturing enterprises are 5.78%, 13.14%, and 20.35% respectively. When the actual tax burden rate is lower than the threshold value of 1.24%, the inhibitory effect on the innovation efficiency of high-end manufacturing enterprises will be alleviated, but the impact on mid-end and low-end manufacturing enterprises is not significant. Therefore, it is recommended to increase government subsidies on the whole for the innovation in manufacturing enterprises, and to reduce the actual tax burden rate of them. As for different kinds of manufacturing enterprises, it is necessary to reduce the excessive dependence of low-end manufacturing enterprises on government subsidies for innovation, the focus should be on reducing the tax burden of high-end manufacturing enterprises in their production and operation, so as to improve the effectiveness of government subsidies and reduction of taxes and fees in the motivation of corporate innovation of manufacturing enterprises.

An Analysis of the Impact of Corporate Tax and Fee Burden on High-Quality Economic Development: Evidences from China’s Manufacturing Industry

MA Jin-hua, LIN Yuan, FEI Kun-jie

2021, 0(3):  40-52. 

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When China’s economy enters the high quality development stage, the reduction of taxes and fees is playing an important role of policy instrument in promoting the economic development and the supply-side structural reform. Taking the A-share manufacturing listed companies from 2013 to 2018 as research objects, this paper constructs a multiple regression model to empirically analyze the impact of corporate tax burden on high-quality economic development. The findings show that the reduction of tax burden can improve the total factor productivity of manufacturing industry and promote the high-quality development of economy. Among them, reducing the burden of value-added tax and income tax can increase enterprise cash flow and R&D investment, and then improve production efficiency; while reducing the burden of social security costs can only stimulate the total factor productivity by increasing cash flow. The result of further research shows that the impact of tax burden reduction on small-scale enterprises is more significant, while the impact of social security burden reduction on large-scale enterprises is more significant; multiple tax and fee reforms with a variety of measures can produce greater policy incentive effect. Therefore, it is necessary to further expand the scale of tax reduction effect, provide new momentum for the high-quality economic development, further optimize the tax rate structure of value-added tax, reduce the income tax burden on the enterprises differently, increase the fiscal subsidies on social insurance charges, optimize and adjust the charges related to enterprises, and reduce corporate institutional transaction costs on the basis of consolidating the existing results of taxes and fees reduction.

Modern Finance

The Macro-Prudential Regulatory Framework for Cross-Border Capital Flows and the Effect Test

MIAO Wen-long

2021, 0(3):  53-65. 

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Through establishing a macro-prudential regulatory framework for cross-border capital flows including the regulatory tools, the operational target and the ultimate goal, this paper makes use of China’s data from January 2010 to March 2020 to inspect the effect of regulatory tools on the operational objectives and the ultimate goal. The findings show that the existing macro-prudential regulatory tools have no significant effect on the cross-border capital outflow and inflow under the current account. The full-caliber cross-border financing management plays a certain role in regulating short-term capital flows. Though the price-type regulatory tools such as bank foreign exchange settlement and sale, foreign exchange risk reserve and domestic deposit reserve ratio of overseas financial institutions are difficult to effectively regulate short-term capital outflows and inflows, they are playing an important role in increasing or decreasing the state’s foreign exchange reserves. The price-type regulatory tools and interest margin have a significant impact on the exchange rate. The relative regulatory tools has a very limited impact on the ultimate goal of cross-border capital flow under the current account, the price-type regulatory tools together with exchange rates have a certain impact on the ultimate goal of cross-border capital flow under the capital and financial accounts. This indicates that the existing macro-prudential regulatory tools for cross-border capital flows only have limited regulatory effects, it is necessary to seek and design new regulatory tools to reflect the characteristics of macro-variables and counter-cyclical regulation and control. The daily regulation should give full play to the means of market, but during such harsh times as severe capital flight, it can be taken into consideration to adopt foreign exchange management policies, so as to achieve the balance of international payments.

“Internet +”Changes and Corporate Financial Asset Allocation

ZHAO Meng, YANG Xiu-yun, LI Yang-zi

2021, 0(3):  66-77. 

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With the panel data of China’s A-share non-real estate and non-financial listed companies in Shanghai and Shenzhen stock markets during the period of 2013—2017, this paper explores the impact of“Internet+”changes on the level of corporate allocation of financial assets, and empirically identifies the dominant motivation of“Internet +”enterprises changing their level of financial assets allocation. The results show that“Internet +”has significantly promoted the level of financial assets allocation in enterprises, and the purpose of those enterprises participating in the changes to increase their financial assets holdings is mainly out of the substitution motivation rather than the reservoir motivation. The positive impact of“Internet +”changes on the level of corporate financial assets allocation mainly exists in non-state-owned enterprises and the enterprises that are rapidly promoting“Internet +”. Therefore, the supervision departments should guard against the financialization tendency of the “Internet+” enterprises, further strengthen the administrative examination when allocating special funds, urge the relevant enterprises to disclose more detailed change information to strengthen the external supervision from the capital markets, ensure the supporting funds entering the production transformation link of micro-entities, formulate differentiated industrial policies that are more structural to guide enterprises to have different division of work, guide the state-owned enterprises to capture the core technology of“Internet +”and construct public platform, and allocate more social resources into the enterprises that are vigorous in“Internet+”changes and strengthen the supervision on them.

Business Administration

Research on the Negative Effects of Humble Leadership: From the Perspective of Social Cognitive Theory

CAO Yuan-kun, QIN Feng, ZHANG Yan-nan

2021, 0(3):  78-87. 

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Previous studies on humble leadership have discussed too much on its positive effects and ignored its possible negative effects. From the perspective of social cognitive theory, this paper discusses how and when humble leadership will induce employees’ workplace deviant behaviors. Through an analysis of the data of 251 leader-employee pairs from central China, it is found that the employees’ power distance orientation positively moderates the relationship between humble leadership and employees’ workplace status perception, that the employees’ workplace status perception has a significantly positive correlation with the workplace deviant behavior, and that, meanwhile, the employees’ workplace status perception mediates the influence of the interaction between humble leadership and the employees’ power distance orientation on the employees’ workplace deviant behavior.

Joint Researches on Network and Corporate Innovation Investment: Based on the Empirical Evidences from Institutional Investors’ Field Researches

WANG Le, TIAN Gao-liang, FENG Hua, WU Xuan

2021, 0(3):  88-99. 

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Taking the A-share companies listed in Shenzhen Stock Exchange from 2013 to 2018 as the research objects, this paper analyzes the governance mechanism of the institutional investors’ joint research on network and examines the relationship between the information network location of the companies under research and the innovation investment. The findings of the study show that the higher the centrality of the institutional investors’ joint research on network, the greater the investment in innovation of the companies under investigation. And the above relationship is more significant in companies with worse information environment and higher agency costs. It is found through further analysis that the institutional investors’ joint research network can not only improve the information transparency of the companies under survey, but also restrain the self-interested behaviors of the management and ease the financing constraints.

Industry & Trade

How the Institutional Quality of Host Countries Affect the Mode of Global Value Chain Governance of the Multinational Companies

YANG Zhen-zeng, YANG Hong

2021, 0(3):  100-111. 

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The institutional quality of the host countries can affect the mode of global value chain governance of the multinational companies through the“fixed cost effect”and the “traditional boundary effect”. On the one hand, the improvement of institutional quality can reduce the institutional fixed costs of corporate foreign direct investment and promote the enterprises to adopt the mode of equity governance. On the other hand, the institutional quality will reduce the internalized demands resulted from market imperfections, and thus reduce the adoption of the equity governance mode. The findings of an empirical study using the trade data of related parties from US Census Bureau show that, at the stage of entering the market of host countries, the improvement of institutional quality of multinational companies can reduce the institutional fixed costs and raise the probability of adopting equity governance mode. However, at the stage of choosing corporate boundaries, due to the influence of traditional boundary effect, the impact of the improvement of institutional quality on corporate adoption of equity governance mode will be weakened; and with the rise of industrial institutional intensiveness, it will be further weakened.

How does Institutional Quality Affect the Global Value Chain Embedding Position of Service Industry

HAN Shen-chao, XU Shan

2021, 0(3):  112-123. 

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With the service industry becoming the focus of the new round of high-level opening up, the position of global value chain of service industry has attracted a growing number of attentions. This paper constructs a theoretical mechanism of the institutional quality that influences the position of global value chain of the service industry, and takes the cross-border panel data from 61 countries as samples to empirically investigate the above effect. The research results indicate that the institutional quality has a significantly positive correlation with the embedding position of global value chain of service industry, and that the institutional quality has a significant threshold effect on the embedding position of global value chain of service industry. Additionally, R&D expenditure, industrial structure and information infrastructure can play a significant regulating role in the impact of the institutional quality on the position of global value chain of service industry. On this basis, in the context of the new pattern of comprehensive opening up, this paper puts forward some policy suggestions to improve the status of global value chain of service industry, such as optimizing institutional supply, creating a high-quality business institutional environment, etc..

Book Review

The Negative Externality of Zombie Companies’ Occupation of Bank Credit: From the Perspective of Commercial Credit

ZHANG Dong, ZHAO Wen-zhuo

2021, 0(3):  124-135. 

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To duly handle the relationship between zombie companies and each interest subject is the top priority in the supply side structural reform. Taking the A-share listed companies from 2010 to 2017 as samples, this paper studies the negative externality of bank credit funds occupied by zombie companies from the perspective of commercial credit. The findings show that the more credit resources that zombie companies occupy in the financial market, the more commercial credit funds that they occupy in the product factor market. Compared to downstream customers, the above-mentioned impact is more significant for upstream suppliers of the zombie companies. The results of further analysis show that the higher the asset specificity that the zombie companies have and the higher the industry concentration of the industry that the zombie companies are in, the more serious the commercial credit occupied by them. The findings of the mechanism test indicate that the negative externality of the zombie companies’ occupation of bank credit funds to upstream and downstream companies are caused by the low transparency of the zombie companies’ information and their insufficient solvency.

Does Labor Investment Efficiency Affect Corporate Innovation? Empirical Evidences from China’s Listed Companies

GUAN Kao-lei

2021, 0(3):  136-148. 

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Corporate innovation is the result of the joint action of corporate material factor and labor factor allocation, in which labor is the only factor with subjective initiative. This paper analyzes the impact of labor factor on corporate innovation from the perspective of labor investment efficiency. The results show that good labor investment efficiency can promote corporate innovation. The findings of further study show that the promotion effect of good investment efficiency on corporate innovation is more obvious in the enterprises without the support of industrial policies, the enterprises located in areas with poor legal protection, the technology intensive enterprises and the enterprises under fierce industrial competition. And it is through improving corporate internal control level and reducing agency cost that good labor investment efficiency can promote corporate innovation. From the perspective of improving the efficiency of labor investment, this paper provides a new idea to promote corporate innovation and realize national innovation strategy.