Table of Content

15 December 2021, Volume 0 Issue 12

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Theoretical Economics

Centennial Industrialization under the Leadership of the Communist Party of China: Development, Experience and Prospect

LI Xiao-hua, SHEN Ji-lou

2021, 0(12):  3-14. 

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In the early days of its founding, the Communist Party of China (CPC) carried out its exploration of industrialization in the revolutionary base areas. After the founding of the People’s Republic of China (PRC), CPC led the people in the whole country to further begin the magnificent process of industrialization. After a hundred years of struggle, China has been changed from an agricultural country with a very weak industrial foundation into an industrial power in the world with the largest industrial scale, the most complete industrial categories, the most perfect industrial supporting facilities, the continuous enhancement of innovation ability and the rising division of labor status in the global value chain. During the three stages, i.e., from the founding of the CPC to the founding of New China, from the founding of New China to the reform and opening up, and from the reform and opening up to the present, the industrialization under the leadership of CPC has such characteristics as always sticking to a people-centered approach, always putting industrial development in the important position of the overall national development, always keeping to the path of industrialization with Chinese characteristics, always adhering to the principle of self-reliance and opening up to the outside world. At present, China’s industrialization is facing a new environment including the reconstruction of the global industrial chain pattern under the counter globalization, the new round of sci-tech revolution and industrial transformation, etc.. On the new journey towards the second centennial goal of building a modern socialist strong power in all respects, China needs to unswervingly further promote its industrialization and realize high-quality industrialization.

Research of the Compiling of the Natural Resource Balance Sheet Based on the Ecological Footprint Approach: Taking the Land Resources of Jiangxi Province as an Example

WANG Jun-jie

2021, 0(12):  15-27. 

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Compiling a natural resource balance sheet is a prerequisite for the implementation of the off-service audit of the natural resource assets and the accountability system for ecological and environmental damages before the leading officials leave their offices; it also helps to achieve the goal of carbon neutrality. The study of the natural resource balance sheet still faces some theoretical problems, and it is still a huge challenge to compile a set of reproducible and highly operable natural resource balance sheets. Reconstructing the theoretical framework of natural resource balance sheets with reference to ecological footprint ideas can solve some theoretical problems and make the preparations for the plan more maneuverable. The trial compilation results based on the data of the whole province of Jiangxi and the three cities of Nanchang, Ji’an and Ganzhou show that the total equity value of land resources in Jiangxi Province in 2018 is approximately 118 trillion yuan. In the total value composition, forest land, arable land, wetland, and grassland account for about 75%, 9%, 8%, and 8% respectively. In 2018, the value of land liabilities in Jiangxi Province was approximately 3.46 trillion yuan. In 2018, the value of land resource equity in Ganzhou, Ji’an, and Nanchang were 26.77, 18.21, and 4.29 trillion yuan respectively. In 2018, the value of land resources in Jiangxi Province was about 21 times the value of physical capital stock and about 54 times the gross regional product. This result is more credible than that of other existing studies, and it also proves that “clear waters and green mountains are as good as mountains of gold and silver”.

Public Economics & Administration

How Does the Transfer Payment Distribution Affect the Supply of Local Basic Public Services? From the Perspective of Intergovernmental Financial Competition

SHU Lei, LIANG Qian

2021, 0(12):  28-40. 

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Fiscal transfer payments are the important institutional arrangements to ensure the supply of basic local public services. By making use of China’s provincial-level panel data from 2003 to 2019, this paper conducts an empirical analysis of the impact of transfer payment distribution on the supply of local basic public services under the inter-governmental fiscal competition mechanism. The findings show that there is a significant competitive strategic interactive relationship between the distribution of intergovernmental transfer payments and the supply of local basic public services. And the more transfer payment funds distributed in the competitive regions, the more local governments are inclined to reduce the supply of the basic public services. This kind of competitive strategic interactive relationship can inhibit the incentive and safeguarding effect of the transfer payments on the supply of local basic public services. In terms of transfer payment types, the inhibiting effect of the competitive strategic interactive relationship on the supply of local basic public services is more prominent in the special transfer payments. In terms of the regions, the inhibitory effect of the competitive strategic interactive relationship on the supply of local basic public services is more obvious in the economically developed regions. Therefore, standardizing the order of fiscal competition among the regions, constructing a more scientific and transparent transfer payment distribution mechanism, and further optimizing the distribution structure of transfer payment funds are conducive to the incentive role of transfer payment system in ensuring the supply of local basic public services.

Public Education Expenditure, Economic Status Expectations and Residents’ Redistribution Preferences

SUN Qun-li, XIE Bin-ze

2021, 0(12):  41-52. 

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In order to narrow the gap between the rich and the poor, achieve the goal of common prosperity, and promote social equity, it is of great significance to expand public education expenditures and guarantee equality in education. By making use of the data of the Wealth and Income Survey of Chinese Households from 2017 to 2019 from the Innovation and Talent-introducing Base of Income Distribution and Modern Financial Discipline, this paper investigates the effects of public education expenditure on residents’ redistribution preferences. The findings show that the more public education expenditure meets the demand of the residents, the lower their redistribution preference will be, and that the more unfair the income distribution, the stronger their redistribution preference will be. With the increase of the residents’ income, the degree of their redistribution preference will be decreased. As for the groups with different educational background or the groups belonging to different income levels, there exist significant differences in the impact of public education expenditure on the redistribution preferences. For both urban and rural residents, adequate public education expenditure can effectively reduce the redistribution preferences. Insufficient public education expenditure will not only enhance the redistribution preferences, but also lead to the decline of the expected economic status and further raise the redistribution preferences. Therefore, we should increase the investment in public education expenditures, improve the supply level of public education, relieve the class solidification, improve social mobility, increase the residents’ income level, actively play the regulating role of the tax policy and transfer payment policy, so as to promote fair income distribution.

Modern Finance

An Empirical Study of the Impact of Enterprise Asset Securitization on Operational Performance

GUI He-fa, REN Miao-zi

2021, 0(12):  53-64. 

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As an innovative financing method, asset securitization has increasingly become an important direct financing channel for enterprises. By making use of the data of asset securitization of China’s enterprises from 2015 to 2020, this paper applies the sys-GMM method to analyze the impact of enterprise asset securitization on the operational performance. The findings show that the asset securitization of China’s enterprises has a significant positive impact on the business operational performance. The influencing mechanism is to relieve the financing constraints, promote R&D innovation and strengthen the strategic flexibility. Compared with state-owned holding enterprises and large-scale enterprises, the asset securitization of non-state-owned holding enterprises and small-scale enterprises has a greater positive impact on the business performance. The asset securitization of financial leasing products, accounts receivable and various loan products, and REITs products displays a greater role in promoting enterprise operational performance. Therefore, China should consolidate the institutional foundation, optimize the supporting policies, strengthen the information disclosure system and vigorously develop the business of enterprise asset securitization.

A Study of the Influencing Mechanism of Digital Inclusive Finance on Total Factor Productivity of Urban Financial Industry

LIAO Kai-cheng, ZHANG Yu-chen, PENG Geng

2021, 0(12):  65-76. 

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Based on the urban panel data from 2011 to 2018, this paper calculates the total factor productivity of the financial industry. It also applies DID and instrumental variable method to test the impact of digital inclusive finance on the total factor productivity of the financial industry. The findings show that, firstly, the development of digital inclusive finance can significantly reduce the total factor productivity of the financial industry, and that this inhibitory effect is also reflected on the impact on technical efficiency and scientific and technological progress efficiency. The coverage of digital inclusive finance only has a restraining effect on the total factor productivity of the financial industry. The depth of the usage only has an inhibition effect on the total factor productivity of the financial industry and the technical efficiency, while the degree of digital support service has inhibitory effects on all the three, i.e., the TFP of the financial industry, the technical efficiency and the scientific and technological progress efficiency. Secondly, the mechanism that digital inclusive finance inhibits the total factor productivity of financial industry can be explained by the “resource competition hypothesis”. Thirdly, if the administrative levels of the cities are different, the interactive relationship between digital inclusive finance and total factor productivity of financial industry will be the same, but the interactive mechanism will be different. Therefore, it is necessary to carry out the different policies against the characteristics of the financial institutions, promote the digital transformation of the financial institutions, and improve the digital technological level of the financial sector.

Business Administration

Will Insurance System Design Affect Corporate Internationalization Strategy Evidences from the Liability Insurance of Directors and Executives

TANG Xue-song, LIAO Wang, LIAO Qiang

2021, 0(12):  77-89. 

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China is now committed to its high-quality development with high-level opening up. How to realize the transformation of China’ enterprises from“bringing in”to“going out”along a fast and stable path is an important practical issue. Taking the 2010-2019 Chinese A-share listed companies as the research sample, this paper conducts an empirical analysis. The results show that the directors’ and officers’ liability insurance could significantly improve the internationalization level of the enterprises. The results of the mechanism analysis show that the directors’ and officers’ liability insurance can enhance the corporate internationalization level by suppressing the risk aversion tendency of the executives and improving the corporate risk-taking ability. The findings of further analysis show that the directors’ and officers’ liability insurance has a significant incremental effect on the corporate value after the improvement of their internationalization level, which indicates that the directors’ and officers’ liability insurance has indeed improved the ability to prevent and respond to international risks of the enterprises.

Authentic Leadership and Employees’ Well-Being: Multiple Mediating Comparison and Boundary Conditions

SONG Meng, DONG Yu-jie

2021, 0(12):  90-100. 

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The subjective well-being of employees has always been an important focus for theorists and practitioners. As an important organizational situation, the influence of leadership on well-being has been widely investigated. However, researches on the relationship between authentic leadership and employees’ well-being are very limited, researches focusing on the transmission effect comparison and contingency mechanism between them is even more scarce, further exploration of which is urgently needed. The findings of the analysis based on the data of 309 employees show that the authentic leadership has a significant positive predictive effect on employees’ subjective well-being and that the psychological capital and leadership identity have a transmission effect between authentic leadership and employees’ well-being respectively. The results of multiple mediating effect analysis show that the indirect effect of psychological capital accounts for 60.7% of the total effect, which is significantly higher than that of leadership identity and leadership trust. Even in China’s society which favors the human relationship, the unique explanation from the perspective of Western positive organizational behavior is still the most powerful. The perception of workplace climate of authenticity strengthens the positive relationship between authentic leadership and psychological capital and the mediating effect of psychological capital between authentic leadership and employees’ well-being, but it will offset the positive effect of authentic leadership on leadership trust. This study verifies the strengthening and substituting effects of the“hard”environment system on the“soft”leadership behavior and provides a theoretical basis for the follow-up boundary researches. The conclusion of the study provides useful references for the management and intervention of organizational practice to improve employees’ well-being.

Industry & Trade

The Industrial Effect of the Digital Economy: A Theoretical Analysis Based on Data Factorization

ZHOU Zhi-han, YANG Xi

2021, 0(12):  101-114. 

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By constructing a heterogenous enterprise dynamic equilibrium model and combining theoretical research with quantitative analysis, this paper explores the impact of digital economy on industrial productivity, intra-industry resource integration and social welfare. The findings show that after introducing digital economy, the export critical productivity increases, the changes of the production critical productivity and industrial average productivity are determined by the corresponding critical value of the productivity improvement index, while the degree of the intra-industry production competition is relieved and the degree of the intra-industry export competition is intensified. Through the two paths of changing the factor marginal output and the industrial entry cost, digital economy can exert its effects on the industrial economy at the same time. It has dual effects on the intra-industry resource integration and the social welfare, which means that there exist corresponding critical values of data versus price. On both sides of the critical value, the effects brought over by the digital economy is just the opposite. The value and the changing trend of this relative price critical value depend on such industrial characteristics as the intensity of data factor, the degree of product differentiation, and the industrial trade cost. This research not only builds a theoretical analysis paradigm for industrial digitalization and lays a theoretical foundation for future research on the industrial effects of the digital economy, but also provides a theoretical basis for China to steadily promote the development of the digital economy. The government should implement the precise industrial guidance policies in accordance with the various industrial characteristics and promote the transformation and upgrading of the industrial digitalization according to local conditions.

Digital Technology and the Global Value Chains Specialization: Empirical Evidences from China’s Subdivided Industries

WANG Bin, GAO Jing-feng, SONG Yu-jie

2021, 0(12):  115-125. 

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At the time when the digital economy and the global value chains specialization converge, studying how digital technology affects China’s participation in the global value chains specialization is of great practical significance for building a strong trade country and developing a high-quality economy. From the perspective of production factors, this paper proposes a new idea of measuring the global value chains specialization, and it uses the input-output table to measure the degree of China’s participation in the global value chains specialization and the digital technology used by various industries in China. The results show that digital technology has significantly promoted the degree of China’s participation in the global value chains specialization, and that China using its domestic digital technology can better promote China’s participation in the global value chains. In addition, the use of digital technology can play a more important role in promoting China’s participation in the global value chains specialization in the EU region, the agricultural selecting and processing industries and the manufacturing industry, as well as the complex global value chains specialization. China should attach importance to the development of domestic digital technology, explore the potential of foreign digital technology, make full use of the opportunities brought by digital technology, and further deepen its participation in the global value chains specialization.

Modern Accounting

Research on the Impact of Social Credit on Enterprise Financialization and Its Mechanism: An Analysis Based on the Data of the Urban Credit-Losing Persons Subjected to Enforcement

XIANG Yu, DAI Qin-wen, MA Jun-feng

2021, 0(12):  126-136. 

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Excessive financialization of enterprises will threaten the balance of macroeconomic structure and the smooth operation of the real economy. By making use of the name list of the credit-losing persons subjected to enforcement by the Supreme People’s Court, this paper examines the impact of social credit on corporate financialization and its mechanism. The findings show that social credit loss will aggravate corporate financialization, and that the level of marketization and the financing environment can alleviate the positive correlation between social credit loss and corporate financialization. The results of further research on the intermediary mechanism show that social credit loss will exacerbate the agency problems of enterprises and increase the financing constraints on enterprises, thereby increasing the degree of corporate financialization. Therefore, it is necessary to improve the new credit-based supervision mechanism, integrate and improve the social credit information system, and establish and improve the coordination and linkage mechanism and the joint punishment mechanism for finding out the credit-losing persons subjected to enforcement.

Joint Shareholders and Earnings Persistence

YAN Su-yan

2021, 0(12):  137-148. 

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If one company holds the shares of a number of listed companies in the same industry, this company is then one of the joint shareholders of many companies in the same industry. Because the joint shareholders hold the shares of many companies in the same industry, they possess the unique advantage of information integration, which can affect the accounting information process of the companies of which they hold shares, relieve the competition of the product markets and the uncertainty of the business environment, and further affect the earnings persistence of the companies of which they hold shares. Taking China’s A-share listed companies from 2007 to 2018 as research objects, this paper explores and analyzes the impact of the joint shareholders on the earnings persistence. The findings show that the joint shareholders can significantly improve the earnings persistence of the companies of which they hold shares. The results of further analysis of the influencing channels indicate that the joint shareholders can improve the earnings persistence through two paths, i.e., reducing both earnings management and performance fluctuation.