Table of Content

15 September 2021, Volume 0 Issue 9

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Theoretical Economics

Constraint of Economic Growth Target and Technological Innovation: From the Perspective of Resources Misallocation

WANG Zhan-xiang, GONG Guang-xiang, MAI Yu-qiang

2021, 0(9):  3-13. 

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The constraints of economic growth target may influence the preference of local governments’ resource allocation, then further impact technological innovation. This article investigates such influences by making use of the economic growth target data at China’s prefecture-level cities. The findings show that technological innovation will be significantly restrained by the behavior of “adding more at every lower level”itself, the economic growth target amplified after“adding more at every lower level”or using the manner of economic growth target formulation with characteristics of“hard constraints”, while using the manner of economic growth target formulation with characteristics of“soft constraints”can promote technology innovations. The above research conclusions remain valid after a series of robustness tests. The results of a mechanism test show that economic growth target constraints will lead to self-interest investment preferences that“attaching importance to production and neglecting innovation”and the land leasing strategy that“intervening for growth”in local governments, thus the resources will be misallocated and technology innovations will be inhibited. Further studies indicate that the influences of economic growth target constraints on technological innovation have significant heterogeneity in terms of regions, levels of cities and the completion of economic growth target.

Structural Reform, Entrepreneurship and Economic Growth

GUO Ping, HU Jun

2021, 0(9):  16-28. 

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The scale expansion of entrepreneurship does not necessarily bring economic growth, which has become a realistic contradiction to be solved urgently in the process of promoting innovation and entrepreneurship in China. Whether the structural reform can reveal the puzzle of economic growth promoted by the entrepreneurship and realize economic growth promotion by increasing the quality of entrepreneurs are the important issues in promoting the high-quality development at present. On the basis of dividing entrepreneurship into opportunity and necessity-pushed entrepreneurship, this paper conducts an empirical study with the data from 92 countries from 2001 to 2016. The findings show that, in the long term, the opportunity entrepreneurship can promote economic growth, while the necessity-pushed entrepreneurship has an inhibition effect on economic growth. The structural reform can stimulate the opportunity entrepreneurship, and at the same time restrain the necessity-pushed entrepreneurship; especially at the growth and transition stage, trade reform, finance reform and ownership reform are important paths to promote the opportunity entrepreneurship, while the structural reform can achieve economic growth by influencing the opportunity entrepreneurship. Therefore, stimulating and protecting the opportunity entrepreneurship through structural reform will be an important way to improve the quality of entrepreneurs and achieve sustained economic growth in China.

Public Economics & Administration

An In-Depth Understanding of the Important Decision of “Strengthening the Overall Planning of Fiscal Resources”

DENG Li-ping, WANG Zhi-xuan, CHEN Li

2021, 0(9):  29-37. 

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“Strengthening the overall planning of fiscal resources”is an important task of establishing a modern fiscal and tax system in China during the 14th Five-Year Plan period, which is playing a leading role in the reform of the fiscal and tax system. Understanding this important decision has great significance in further strengthening the foundation and pillar roles the finance is playing in the national governance and showing the new governance efficiency of fiscal finance in coordinating both internal and external situations. This paper tries to comprehend the policy deployment from five aspects: insisting the mechanism of the Party supervising fiscal finance, realizing the linkage between fiscal and financial policies, promoting the integration of fiscal finance and tax, optimizing the application of fiscal policy and coordinating the situations of internal and external affairs. Therefore, when we implement the policy of strengthening the overall planning of fiscal resources, it should not only guide the flow of efficient resource allocation in the fiscal frame, promote the integrated hold of both finance and tax and the optimization and adjustment of the fiscal policies, but also jump out of the fiscal frame to take into account the influences of political, economic and social factors, and to study the overall leadership of the Party over the overall planning of fiscal resources and the requirement of the fiscal and financial mutual effect on the fiscal resources allocation. It is more important to extend the location extension, promote the fiscal position, and demonstrate the full role of the overall planning of fiscal resources in promoting the ability of national governance from both domestic and foreign situations, so as to provide solid financial guarantee for the realization of the major national strategic tasks.

The Impact of Digital Economy Development on Local Fiscal Sustainability in China

DENG Da, PAN Guang-xi, LIN Xiao-le

2021, 0(9):  38-52. 

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The development of digital economy and the local fiscal sustainability are two important issues in the face of China’s macro-economic field. It is of great practical significance to study the impact of the development of digital economy on local fiscal sustainability. Based on the provincial panel data from 2011 to 2018, this paper first measures China’s local fiscal sustainability index, and then uses the fixed effect model to empirically study the impact of digital economy development on local fiscal sustainability. The results show that, in the whole country, there is a significant and stable positive correlation between the development of digital economy and the local fiscal sustainability. The results of a mediating effect test show that the development of digital economy can affect local fiscal sustainability through fiscal revenue. Therefore, it is necessary to further optimize and promote the market mechanism and the policy support system for the development of digital economy, and to accelerate the digital industrialization and industrial digitization to promote the development of digital economy. It is also necessary to promote the reform of the financial and tax management system, strengthen the application of digital frontier technology in financial and tax management, and implement digital comprehensive budget performance management system。In addition, it is necessary to do a good job on“increasing income and reducing expenditure,”while the performance supervision and management of financial expenditure funds should be strengthened.

Modern Finance

Research on the Regional Differences and Effects of the Coordinated Development of the Digital Inclusive Finance and the Real Economy

LV Jiang-lin, YE Jin-sheng1, ZHANG Lan-hong

2021, 0(9):  53-65. 

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Based on the provincial panel data from 2011 to 2018, this paper empirically studies the impact of the collaborative development of the digital inclusive finance and the real economy on China’s macro economy by employing such analytical tools as Dagum Gini coefficient, kernel density estimation and standard deviation ellipse. The findings show that the level of the collaborative development of China’s digital inclusive finance and real economy maintains a certain growth trend, but on the whole, the current level of collaborative development is still relatively lower. There is a certain spatial heterogeneity in the collaborative development of the digital inclusive finance and the real economy. The average level of collaborative development in the eastern region is significantly higher than that in the central and western regions. There is a non-balanced development trend in the coordinated development of the digital inclusive finance and the real economy. Although the regional differences of the collaborative development of the digital inclusive finance and the real economy are reducing gradually, the current relative differences are still larger as a whole. The improvement of the coordinated development of the digital inclusive finance and the real economy has a significant positive effect on China’s macroeconomic growth. Comparatively speaking, the coordinated development of the digital inclusive finance and the real economy in the western region has the largest effect on macroeconomic growth, followed by the eastern region, and the central region is the smallest. In order to improve the collaborative development level of the digital inclusive finance and the real economy and reduce regional differences, all the regions should strengthen the supporting role of the digital inclusive finance, guide the digital inclusive finance to better serve the real economy, and against the existing spatial imbalance of the collaborative development of the digital inclusive finance and the real economy, actively explore the regional coordination mechanism for the coordinated development of the digital inclusive finance and the real economy.

Stock Market Liberalization and Enterprises“Transforming from Reality to Virtuality”: From the Perspective of Dual Governance Mechanism

WANG Yong, LU Xue-yao

2021, 0(9):  66-77. 

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With the help of the Shanghai-Hong Kong Stock Connect coming into effect as an exogenous event, this paper constructs a difference-in-difference model and overcomes the event identification errors in the previous transnational researches and the endogenous biases of reciprocal causation to explore the impact of capital market liberalization on corporate financialization by making use of the data of A-share listed companies at Shanghai and Shenzhen stock exchanges from 2011 to 2018. The findings show that the implementation of the Shanghai-Hong Kong Stock Connect system can significantly inhibit the corporate financialization, thereby reducing the risk of enterprises“transforming from reality to virtuality”. The mechanism of action is realized through the dual internal and external governance of passive“voting with feet”and active“voting with hands”by foreign investors. The results of the expansion research reveals that the main motivation for the financialization of Chinese enterprises is still market arbitrage; the opening of the capital market has achieved value creation by reducing the corporate financial asset allocation. Therefore, the government should accelerate the pace of capital market liberalization, encourage mature foreign investors to enter the market, and guide institutional investors to achieve true active shareholderism, and promote the return of capital to the real economy.

Business Administration

Family Identity and Corporate Strategic Transformation: Empirical Evidences from Chinese Family Listed Companies

DU Shan-zhong, LI Zhuo

2021, 0(9):  78-91. 

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Strategic change is an important means for enterprises to maintain their own sustainable competitive advantages, and it is of great significance to family businesses whose goal is to have a long-lasting business. Taking China’s A-share family listed companies as samples and based on the theory of identity, this paper explores the influence of family identity of executives on corporate strategic changes and focuses on the moderating effect of institutional efficiency. The results of the empirical test show that family identity can effectively promote family businesses to implement strategic changes. For family businesses located in areas with higher institutional efficiency, family identity has a more significant positive effect on strategic changes. The results of the mechanism test show that family identity can promote the implementation of strategic changes mainly from the two aspects of willingness (risk-taking and intergenerational inheritance) and ability (legitimacy and financing constraints). It is found from the expansion analysis that the positive impact of family identity on strategic changes is more significant in the context of a large educational gap between the chairman of the board and the general manager, a small age gap, and the same gender. From the perspective of family identity, this study analyzes the decision-making motive, the situational mechanism and the influencing path of family business strategic reform, which expands the related researches on the strategic reform of family business.

The Impact of Sample Bundling Promotion on Consumer Decision Making

XIAO Chun-qu, ZHU Hong, WANG Xin

2021, 0(9):  92-100. 

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Sample bundling promotion has become one of the popular forms of product promotion, however, this kind of promotion has not won due attention from researchers. Base on the theory of bundled promotion, this paper brings the sample sacks into the research field of bundled promotion to explore the influence of sample bundling promotions on consumers’ purchase decisions and its psychological mechanisms through three experiments. The findings show that bundled samples would decrease consumers’ purchase willingness. This effect is mediated by the spillover effect of the bundled products; the consumer’s evaluation of the lower attractiveness of bundled samples may spill over on their evaluation of the major products, resulting in the decrease in consumer’s willingness to buy. The consumers’ holistic-thinking mode can moderate this effect; for the consumers with higher trend of holistic thinking, bundled sample promotion has a greater negative impact on consumers’ purchase decisions. These research results have expanded the research of bundled promotion and provide theoretical guidance for marketing managers to design bundled promotion schemes.

Industry & Trade

Comprehensive Costs, Comparative Advantages and Industrial Upgrading

YANG Qing-long, WU Shi-an

2021, 0(9):  101-112. 

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The industrial upgrading in the context of the new era will transform from the“hyper materialism”to“balanced materialism”, paying more attention to the weighing and balancing of comprehensive costs. The so-called comprehensive costs refer to the total costs of all the factors used in the process of industrial development, mainly including production costs, transaction costs, environmental costs and inter-generational costs at present. The upgrading of factor structure, the total comprehensive cost and its structural changes will determine the industrial comparative advantages of a country or a region, and the industrial comparative advantages will determine the basic direction of industrial upgrading of a country or a region. Therefore, China should make efforts to promote its industrial structure gradually transforming to the emerging industries, such as contract intensive industries, environment-friendly industries and resource-saving industries under the synergistic effect between the market and the government, and complete the replacement, transformation or upgrading of the traditional industries by the emerging industries, so as to realize the organic unity of economic development, industrial upgrading, institutional innovation, environmental protection and sustainable development.

Can Inputs of Endogenous Services Improve Corporate Performance?

LIAO Han, CONG Hao, ZHANG Chun-yu

2021, 0(9):  113-125. 

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The endogenous service activities are the essence of the input of the manufacturing industry in services, however, the related researches on the input in services focus mainly on the input in the exogenous services, only few can be found on the endogenous service input. Taking the A-share listed companies of the manufacturing enterprises on Shanghai and Shenzhen stock exchanges from 2007 to 2018 as the research objects, this paper investigates the characteristics of their endogenous service input, and empirically explores the impact of the endogenous service input on corporate performance. The results show that: (1) the proportion of the employees engaged in service activities in the total employees is increasing year by year, among which the proportion of the professional and technical personnel is the highest. At the same time, the strength of the endogenous services input is increasing, and the input intensity in the high-tech industries is generally higher than that in the low-tech industries. (2) The impact of the endogenous service input on corporate performance presents a U-shaped curve relationship. At present, most of the listed companies in the manufacturing industry are at the decline stage of the U-shaped curve, which need to further increase the intensity of the endogenous service input to reach the rising stage of the U-shaped curve, so as to achieve the goal of improving corporate performance. (3) The influence of the endogenous service input on corporate performance is heterogeneous, which depends on the characteristics of industry technology level, firm size and the types of ownership. The above empirical evidences can provide a feasible path for manufacturing enterprises to make service-oriented decisions and solve the problems of service-oriented dilemma from the perspective of the endogenous service input.

Modern Accounting

Can the Review-Inquiry Letter of Sci-Tech Innovation Board Improve the Level of Information Disclosure on Key Items?

JIANG Yao-ming, ZHANG Lei-yun

2021, 0(9):  126-136. 

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Companies that are to be listed on the Sci-tech Innovation Board have to accept non-administrative punishment supervision of Shanghai Stock Exchange by means of review and inquiries. Therefore, this paper takes 215 Sci-tech Innovation Board companies listed from July 22, 2019 to December 31, 2020 as the research objects and takes the first review and inquiry letter from Shanghai Stock Exchange that they received during the IPO process as research samples to analyze the characteristics of the subject matters of the review and inquire letters by employing the LDA subject analysis tool. It also empirically studies the relationship between the subject characteristics of the review and inquire letters and the improvement of the level of information disclosure on key items. The findings show that the stronger the review and inquiry related to key issues in the process of IPO issuance and listing, the higher the level of information disclosure of key matters in the registration draft of the prospectus of the proposed listed company compared to the declaration draft, and the stronger the improvement of information disclosure level by the review and inquiry on the companies with poorer corporate governance.

Family Enterprises and Analysts’ Forecast Accuracy: Empirical Evidences from China’s Private Listed Companies

XIANG Jia-feng, QUAN Yi

2021, 0(9):  137-148. 

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After more than 20 years of development, family enterprises are very common in China’s capital market. Taking China’s A-share private listed companies from 2008 to 2018 as samples, this paper studies the impact of family companies on the accuracy of analysts’ forecasts. The findings show that compared with non-family companies, analysts’ predictions for family companies are more accurate. This result is more significant when the company’s operating uncertainty is higher. The findings of the outcome analysis show that the higher accuracy of forecasting by the analysts of family business can play an active role in information governance, which is mainly manifested in the higher quality of information disclosure in family enterprises and lower risks of stock price collapse. The more listed member companies of the family group, the higher the degree of industry diversification they involved, the higher the accuracy of analysts’ forecasts will be.