Table of Content

15 May 2021, Volume 0 Issue 5

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Theoretical Economics

Internet Use and Labor Supply of Flexible Workers in the Context of the Digital Economy：Theory and Evidences

QI Yu-dong, DING Shu-lei, LIU Cui-hua

2021, 0(5):  3-16. 

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Based on the data of China Family Panel Studies, the findings of this study show that Internet use can significantly increase the probability of self-employment among flexible workers by 7.0%. According to both the full sample and the sub-samples of the self-employed and the employed, the“substitution effect”of the Internet wage premium is greater than the“income effect”; the use of Internet has significantly increased the labor supply time of the self-employed flexible workers, and the positive effect on the self-employed flexible workers is greater than that on the employed workers. The analysis of the mechanism shows that the Internet enables flexible workers to have a freer value orientation and life pursuit, which can increase the probability of self-employment. At the same time, the Internet further prolongs the labor supply time of this group by increasing the individual work preference and the income level. In addition, the use of the Internet to study, work and socializing has significant heterogeneity in the effect on the labor supply of flexible workers. Compared with the group of middle-aged and the elderly and the group of urban population, the use of Internet can significantly increase the self-employment probability and labor supply time of the youth and the rural population.

Chinese Population: Gender Structure Imbalance, Marriage Squeeze and Housing Prices

WU Chang-nan, WANG Jin

2021, 0(5):  17-27. 

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Under the conditions of the imbalanced male and female gender structure in China, the competition between men in the marriage market is fierce, so men will purchase houses to improve their competitiveness in the marriage market. Then will men's purchase of houses for marriage drive up housing prices? From the perspective of China's gender structure imbalance, this paper conducts an empirical study with the panel data of 30 provinces from 2005 to 2018. The findings show that the gender structure imbalance will drive up housing prices, which is done through marriage squeeze. Further analysis of the adjustment effect shows that the education level has a strengthening effect on the positive relationship between gender structural imbalance and housing prices.

Public Economics & Administration

Rethinking of the Uneven Sharing Problems of China's Value-Added Tax Revenue Regions

WANG Ting-ting

2021, 0(5):  28-39. 

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For a long time, under the dominant tax system with the principle of place of production, the sharing of China's value-added tax (VAT) among local governments shows the characteristics of reverse distribution. After the reform of replacing the business tax with VAT, although the longitudinal share proportion of VAT revenue among the local governments has increased, the uneven horizontal sharing problems still exist. And in the present context of retaining to offset against tax payable, the mismatch between the revenue sharing and tax refund liability of the local governments once again highlights this problem. In order to promote the balanced revenue development among local governments, China has partly relieved the imbalance contradiction between regional income and distribution by means of the adjusting mechanism of the local sharing of retaining to offset against the tax payable, however, there still exist some problems, such as the narrow adjustment scope, the unscientific setting of the proportion, the implementation efficiency to be improved, etc.. In the new era, to resolve the uneven sharing problem among the VAT revenue regions, it is necessary to set the goal of public services equalization under the guidance of benefit principle, insist on the principles of tax source contribution, tax burden attribution, and cost-profit matching, and rationally distribute the income among the regions. Meanwhile, we should combine the factors of consumer spending and the number of residents to promote the weighted allocation of VAT revenue among the regions, strengthen the construction of local tax systems and improve the fiscal transfer payment system by establishing the special financial regulation fund for the retaining to offset against tax payable, so as to effectively relieve the unbalancing contradictions of VAT revenue sharing among the regions.

Industry-Classified Information Disclosure, Peer Pressure and Corporate Tax Compliance：A Study Based on a Quasi-Natural Experiment

HUANG Hao, ZHAO Ling

2021, 0(5):  40-51. 

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The inter-enterprise information spillover and the peer effects have gradually become an important perspective for different parties to understand corporate decision behaviors. By making use of the unique scenario of the staggered implementation of industry-classified information disclosure stipulated by Shanghai and Shenzhen Stock Exchanges, this paper establishes a difference-in-difference model to examine the impact of industry-classified information disclosure on corporate tax compliance from the perspective of peer pressure among the companies. The findings show that the implementation of the industry-classified information disclosure policies can significantly decrease the tax avoidance behaviors of the enterprises. Moreover, this effect is more significant in firms with relatively higher degree of radical tax behaviors in earlier stages, lower information transparency and in the regions with weaker tax supervision. Further analysis shows that the peer pressure formed by the improvement of information comparability is an important path to restrain corporate tax avoidance behaviors through industry-classified information disclosure. Therefore, to promote the construction of industry-classified information disclosure system and to strengthen the information spillover among the similar companies are effective measures to improve the tax supervision mechanism and promote the corporate tax compliance.

Modern Finance

A Study of the Non-Linear Adjustment Mode of China's Monetary Policy

DENG Wei, SONG Qing-hua

2021, 0(5):  52-64. 

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From the perspective of non-linear adjustment mode, this paper examines China's monetary policy through constructing a multi-objective adjustment model that takes economic growth, price stability and housing price stability into consideration. The findings show that the adjustment mode for China's monetary policies depends on the realization of GDP growth rate, the control effectiveness on inflation and the changing range of housing prices growth rate, which reflects a non-linear adjustment mode with multi-objective dynamic rotation attention. Specifically, China's monetary policy has a positive and negative asymmetric preference for economic growth and price stability respectively, and it has insufficient strength in adjusting and controlling the inflation. It has positive asymmetric preference for the control of housing prices and relies more on historical housing prices rising information, which attributes to the rather strong inertia of the increasing housing prices. These findings imply that it is of great realistic significance to change the asymmetric adjustment preference of the monetary policy, especially enhancing the adjusting and controlling strength on the inflation, and at the same time guide the public to lower the expectation of the rising of housing prices and strengthen the control over the precipitous rise of housing prices, so as to improve the effect of China's monetary policy.

The Financial Stability Effect of Foreign Exchange Reserves: From the Perspective of Interest Margin between Domestic and Foreign Currencies

CAO Chun-yu

2021, 0(5):  65-76. 

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From the perspective of financial openness, this paper derives the conditions of the uncovered interest parity through the scale adjustment of foreign exchange reserves, so as to provide a theoretical explanation for the financial stability effect of foreign exchange reserves from the perspective of interest margin of domestic and foreign currencies. It makes use of the annual data from 1980 to 2018 to study the foreign exchange reserves in dealing with the spillover effects of monetary policies of the major developed economies. The findings show that the foreign exchange reserves of non-international currency issuing economies can help maintain the interest margin between the local currency and the U.S. dollar, and that there exist transmission paths in foreign exchange reserves which will affect the interest margin between the local currency and U.S. dollar by triggering the changes in local currency interest rates and exchange rates. The influence of foreign exchange reserves on the interest margin between the local currency and the US dollar will be enhanced during the periods without financial crisis, and it also has a significant positive impact on the interest margin between the local currency and Euro and other SDR currencies. This impact on the interest margin between the local currency and foreign currencies is significant in the statistics of the sub-samples of the“Road and Belt”initiative economies. Therefore, it is advisable to continuously optimize the scale of foreign exchange reserves in accordance with the changes of the economic situations and the transformation of the mechanism of foreign exchange reserves, while taking into account the asset risk premium factors of the banking system.

Business Administration

A Study on the Effect of China's Manufacturing Enterprises Responding to the“Belt and Road”Initiative on Corporate Performance

SONG Yuan-yang, ZHAO Jia-xin

2021, 0(5):  77-89. 

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Based on the data of Chinese manufacturing listed companies, this paper explores the impact of enterprises' response to the“Belt and Road”initiative on their performance and its mechanism. The results show that compared with firms without subsidiaries in the“Belt and Road”countries, firms with subsidiaries in the “Belt and Road”countries enjoy better performance. The quicker a firm sets up subsidiaries, and the more subsidiaries in the“Belt and Road”countries, the better performance the firm has. Further analysis indicates that the positive influence of response to the “Belt and Road”initiative on firms' performance is stronger at the proposal stage of the“Belt and Road”initiative than at the institutionalized implementation stage. After using the instrumental variable method to control the endogeneity and conducting multiple robustness tests, the results are consistent with the main findings. The above conclusions reveal the economic consequences of firms' responding to the“Belt and Road”initiative, which not only helps to expand the related researches on corporate political strategies, but also has important implications for firms to build better firm-government relationship and for the government to implement national foundational policies more effectively.

How does Corporate Divestiture Spread? From the Perspective of Peer Effects

WU Qian, XUE You-zhi

2021, 0(5):  90-101. 

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Divestiture has become an increasingly common phenomenon in China's listed companies in recent years. From the perspective of regional peer effect, this paper makes use of the data of A-share listed companies in Shanghai and Shenzhen stock exchanges from 2004 to 2018 to conduct an empirical test of the existence and occurrence mechanism of the contagion effect of Chinese listed companies' divestiture. The findings show that the divestiture decision making of the enterprises has significant regional peer effects, and the divestiture decisions made by focus enterprises are significantly and positively correlated with the divestiture probability of other enterprises in the same province. These results are still robust after controlling the endogenous problems. The results of further study indicate that such issues as the imitation of information acquisition, the imitation of competition and the agency costs are the important action mechanism that promotes the formation of the peer effect of corporate divestiture. To be specific, the enterprises without divestiture experience have significant regional peer effects when they conduct divestiture, the divestiture decision made by the non-leading enterprises are significantly influenced by the divestiture decisions of the regional peer enterprises, the enterprises under great competitive pressure will be significantly affected by the peer enterprises when conducting divestiture, and the enterprises with poor corporate governance quality will have significant regional peer effect when conducting divestiture. This paper provides a new perspective for the comprehensive understanding of China's corporate divestiture transactions.

Industry & Trade

The Impact of Industrial Intelligence on the High-Quality Development of Manufacturing Industry

TANG Xiao-hua, CHI Zi-ming

2021, 0(5):  102-114. 

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To promote the high-quality development of the manufacturing industry is an important issue that China is faced with at the moment. Taking advantage of the accelerated integration of China's industrial intelligence and manufacturing industry, this paper makes use of the provincial panel data from 2005 to 2017 to conduct an empirical test on the impact of industrial intelligence on the high-quality development of the manufacturing industry and its transmission mechanism. The findings show that there is a U-shaped relationship between the industrial intelligence and the quality of the manufacturing development; this result is still robust when the indicators and models are changed and the endogenousness is considered, and there exist stronger industrial heterogeneity and regional heterogeneity. The main channel for industrial intelligence to promote the high-quality development of the manufacturing industry is to optimize the structure of the labor force, increase production efficiency and improve product quality, and the influence becomes more and more significant over time. The policy enlightenment lies in: strengthening the application of industrial intelligence in the manufacturing sector, forming a policy system with precise support, giving full play to the positive effects of labor structure, production efficiency and product quality, and guiding industrial intelligence to promote the high-quality development of the manufacturing industry.

How Does Zombie Enterprises Affect the Global Value Chain Embedding?

ZHANG Peng-yang

2021, 0(5):  115-126. 

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To promote a higher-level opening up during the process of deepening the market-oriented reform has become an important driving force to achieve high-quality development of China's economy. Based on China's Micro Enterprise Database and the Customs Database from 2001 to 2013, this paper studies the effect and mechanism of zombie enterprises on global value chain embedding by identifying zombie enterprises and measuring enterprises' global value chain embedding. The conclusions are as follows: zombie enterprises have significant negative impact on enterprises' global value chain embedding, which is proved to be valid after taking the endogenous problem into consideration and conducting many robustness tests; zombie enterprises have an even significant negative impact on the state-owned enterprises, the foreign-funded enterprises and the processing trade enterprises in the global value chain embedding, while this effect on the private enterprises and the general trade enterprises is rather small. The mechanisms that the zombie enterprises affecting the corporate global value chain embedding are reflected in two ways: one is intensifying the misallocation of industrial resources, thus affecting the global value chain embedding; the other is weakening the market-oriented competition mechanism, which is manifested as restraining the domestic market-oriented process and the entry of foreign investment, thus bringing negative impact on the participation of the enterprises in the global value chains specialization. This study is of great significance for the theoretical interpretation of the true connotation of“promoting opening up through reform”and for the realistic formation of a new pattern of domestic and international dual circulation.

Modern Accounting

Will“Getting Rid of the Substantial and Meeting the Virtual”Affect the Information Environment of Capital Market: From the Analysts' Perspective of Tracking

SHI Xiang-yan, BU Dan-lu, WANG Yu-han

2021, 0(5):  127-137. 

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From the perspective of analysts' tracking behaviors and the forecasting results, this paper studies the influence of corporate“getting rid of the substantial and meeting the virtual”on the information environment of capital markets. The findings show that the higher the degree of corporate financialization, the less the number of analysts tracking the companies, the greater the errors of analysts' earnings forecasts and the greater the degree of forecasting ramification. The results of the mechanism analysis show that corporate financialization will reduce the quality of corporate earnings and increase the fluctuation of corporate earnings, thus affecting the analysts' forecasting behaviors and the forecasting quality, namely, the higher the corporate financialization, the more likely the quality of corporate earnings will be reduced and the fluctuation of corporate earnings will be increased, thus the more likely the number of analysts tracking the companies will be reduced and the errors of analysts' earnings forecast and the degree of forecasting ramification will be increased.

Can Relative Performance Evaluation Improve Corporate Performance: Evidences from the Equity Incentive Schemes of Private Listed Companies

LING Xiao-ting, XUE Yu-jia

2021, 0(5):  138-148. 

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Taking 2008-2018 A-share private listed companies that have implemented equity incentives as samples, this paper examines the impact of private listed companies' implementation of relative performance evaluation in equity incentive schemes on corporate performance. The findings show that by implementing relative performance evaluation in their equity incentive schemes, the private listed companies can significantly improve their corporate performance. Further research shows that among the private listed companies with weak management capabilities, those implementing the relative performance evaluation will have a stronger incentive effect on their management and have a more significant promoting effect on corporate performance. Compared with the strong relative performance evaluation, adopting the weak relative performance evaluation is more conducive to improving corporate performance.