Table of Content

15 January 2022, Volume 0 Issue 1

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Theoretical Economics

The Impact of New Information Infrastructure on the Upgrading of Chinese Enterprises

CHAO Xiao-jing, XUE Zhi-xin

2022, 0(1):  16-28. 

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The new information infrastructure is becoming an important support for China to consolidate and strengthen its foundation of real economy and to build comprehensively a new advantage of digital economy. This study is based on the work reports of Chinese government from 2010 to 2019 and the matching data of listed companies. The findings show that enterprise upgrading is a dynamic process during which production efficiency, organizational management and enterprise value chain can achieve transformation and upgrading. And new information infrastructure has a significant positive promotion effect on enterprise upgrading. This conclusion still holds after the robustness testing which takes endogeneity, sample self-selection and other issues into consideration. The analysis of the mechanism of action shows that the construction of the new information infrastructure and the integrated application will jointly promote the upgrading of enterprises through their improvement of innovation capability, the optimization of human capital structure and the cyberspace agglomeration. The heterogeneity test reveals that for non-state owned enterprises, mature enterprises, enterprises with higher marketization level and technology-intensive enterprises, the new information infrastructures have more significant incentive effects at the level of production efficiency and enterprise value chain, while the promotion effect of new information infrastructures on the upgrading of organizational management of technology-intensive enterprises has not been fully revealed.

Public Economics & Administration

The Logic of the OECD International Taxation Reform Scheme for Digital Economy and China's Response: An Analytical Framework Based on the New-Market Public Finance

MA Hai-tao, CAO Ming-xing, BAI Yun-zhen

2022, 0(1):  29-39. 

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The international tax reform of the digital economy is in full swing, and the OECD has designed a“two-pillar”basic plan, trying to establish market state taxation rights and a global minimum tax system to improve the international taxation order. In response to the above-mentioned reforms, based on the analytical framework of the New-market Public-finance Theory under exploration, this article develops innovative cognitions from the following three aspects: the first is to form a concept of platform market, so as to innovate the explanation of both the platform entities of the new digital economy market and the significance of the tax nexus to such entities, and the market mechanism of the new digital economy platform as well as its characteristics of tax laws and regulations; the second is to form a concept of comparable governments, so as to explore the rectification of the productive role of governments and the proof of the legitimacy of taxation rights, the restoration of the panorama of the comparability of cross-border transactions, and the calculation of comparable government tax bases; the third is to specify the concept of income control rights, so as to separately analyze the tax benefit games between multinational corporations and governments in the OECD reform plan, and the competitions of industrial patterns between countries and the industrial groups in the digital economy. Finally, based on the above logic and basic national conditions, this article proposes some initial policy responses with an emphasis that China should systematically design policies to cope with the global competition and cooperation against the anti-tax avoidance, the global big cycle of digital and industrial economies, and the economic development of the backward regions and the emerging industries from the three levels of security, fairness and development of the national tax bases.

Can Urban Fiscal Autonomy Improve the Level of Technological Innovation? Evidences from Cities and Industrial Enterprises

YU Yong-ze, XIA Long-long

2022, 0(1):  40-52. 

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Technological innovation is the source of vitality for economic development and the strategic support for the construction of the modern economic system. Under the theoretical system of Chinese style fiscal decentralization, based on the panel data of 230 prefecture level cities in China from 2004 to 2016, this paper studies the impact of urban fiscal autonomy on the micro and macro differentiations of technological innovation. The results show that：(1) the improvement of urban fiscal autonomy has not effectively promoted the overall level of technological innovation of the cities. Although the improvement of fiscal autonomy can promote the improvement of local fiscal revenue, the change of the total quantity has not effectively optimized the distortion of the structure of fiscal expenditure. The long-term shortage of social expenditure in the fiscal expenditure will hinder the improvement of the overall level of urban technological innovation. (2) The improvement of urban fiscal autonomy has effectively promoted the technological innovation of industrial enterprises. The main reason lies in that the improvement of financial autonomy can effectively enhance the technological innovation of industrial enterprises by directly increasing the financial subsidies to them. Therefore, local governments should optimize the fiscal decentralization system, deepen the reform of fiscal and tax system according to local conditions, scientifically formulate subsidy policies, and improve the innovation efficiency of the cities and industrial enterprises.

Modern Finance

The Transmission Channels of Monetary Policy of Treasury Yield Curve: Theoretical Mechanism and China's Experiences

GUAN Yu, WANG Xue-biao

2022, 0(1):  53-65. 

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The continuous accumulation of downward pressure in the global economy indicates that China may stay in a low interest rate environment for a long time. Therefore, it is necessary to strengthen the guidance of monetary policy for the treasury yield curve, so as to let long-term interest rate play the role of regulation. The results of the theoretical analysis show that China's current monetary policy framework has possessed the operational conditions to transmit to the treasury yield curve through the signaling channel and the portfolio balance channel. The empirical results further confirm the effectiveness of the two channels in the transmission. Specifically, the transmission effect through the signaling channel is stronger than that through the portfolio balance channel. The role of the signaling channel is short-term, and its direction is consistent with the goal of monetary policy; while the role of the portfolio balance channel is long-term, its direction is opposite to the goal of monetary policy in the short term, and is consistent with the goal of monetary policy in the medium and long term. The transmission effect of the two channels is weaker in the easing period of monetary policy, but stronger in the tightening period of monetary policy, which shows significant asymmetric characteristics. It is suggested that the People's Bank of China should optimize the monetary policy transmission mechanism of both the signaling channel and the portfolio balance channel and open up the interest rate transmission path with the treasure yield curve as the core.

Guaranteed Redemption, Expectations of Implicit Guarantee, and the Yields from Bank Wealth Management Products

SUN Xi-fang, LIU Li-yu

2022, 0(1):  66-77. 

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It is of great significance to study the mechanism of the impact of investors' expectation of implicit guarantee on the yields from bank financial products under the guaranteed redemption environment. By making use of the micro data of WMPs issued by 225 commercial banks, this paper conducts an empirical test. The findings show that, firstly, the investors' expectations of implicit guarantee are not strong enough to make them completely ignore the risks of WMPs, so the yields on WMPs still reflect their risks; secondly, the higher the possibility of government bearing implicit guarantee for banks, the stronger the investors' expectations of implicit guarantee, so that the lower the excess yields on WMPs, the lower the sensitivity of excess yields on WMPs to their risks; thirdly, the New Asset Management Regulation is helpful to weaken the investors' expectations of implicit guarantee, which reduces the distortion of the possibility of government's implicit guarantee for banks on the risk pricing of bank WMPs. So the New Asset Management Regulation has reduced the distortive effect that the possibility of government implicit guarantee for banks has exerted on the pricing of risks on WMPs. Therefore, it is recommended that the regulations on removing the guaranteed redemption of the New Asset Management Regulation should be fully implemented, that the investors' risk awareness should be strengthened and their capability to identify risks should be improved, and that government implicit guarantee for banks should be gradually removed.

Business Administration

Can the Development of Digital Economy Improve the Efficiency of Labor Investment in Enterprises?

ZHAI Shu-ping, HAN Xian, MAO Wen-xia

2022, 0(1):  78-89. 

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Taking the A-share listed companies in Shanghai and Shenzhen stock markets from 2011 to 2018 as samples, this paper explores the impact of the development of digital economy on the efficiency of labor investment. The findings show that the development of digital economy can effectively improve the efficiency of corporate labor investment. The results of the research on the influence path show that the development of digital economy can improve the efficiency of corporate labor investment by leading the enterprises to optimizing the structure of human capital and weakening the power of the management. Then, it further explores the heterogeneity of the relationship between the development of the digital economy and the efficiency of corporate labor investment from the three aspects of labor intensity, property rights and external institutional environment. The results indicate that the development of digital economy has a stronger effect on the improvement of labor investment efficiency of the enterprises with higher labor intensity, that the development of digital economy has significantly improved the labor investment efficiency of the state-owned enterprises with over-investment in labors and the private enterprises with underinvestment in labors, and that less government intervention and a good legal environment are important basic conditions for the development of digital economy to play a role in improving the efficiency of labor investment in enterprises.

How does Business Environment Affect Corporate Investment?

NIU Peng, ZHENG Ming-bo, GUO Ji-wen

2022, 0(1):  90-101. 

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Faced with the continuous decline in the investment rate of real enterprises, the Central Committee of CPC proposes to optimize the business environment in order to promote corporate investments. On the basis of the systematic analysis of the internal mechanism of the impact of business environment on corporate investments, this paper conducts an empirical test by making use of the data of China's business environment and A-share listed companies from 2008 to 2020. The findings show that, firstly, the improvement of the business environment can significantly promote corporate investments. This conclusion still holds after using port opening history as a tool variable to solve the endogeneity problems and a series of robustness tests. Secondly, the results of the heterogeneity test show that, at the level of enterprise ownership, the improvement of business environment can play a more significant role in promoting the investment of non-state-owned enterprises. At the industrial level, the improvement of business environment plays an even more significant role in promoting the investments of enterprises in the manufacturing industry as well as in the industries with lower and medium technology. At the regional level, the improvement of business environment in the eastern region and the areas with higher degree of privatization plays a much more significant role in promoting enterprise investments. Thirdly, further mechanism tests show that the improvement of business environment can promote enterprise investments mainly by easing the financing constraints on the enterprises. Therefore, all the regions should focus on simplifying the process of administrative examination and approval for enterprises, perfecting the legal system, optimizing the financial environment, and strengthening the infrastructure construction, so as to promote corporate investments by improving the business environment.

Industry & Trade

Data Element Market Construction and Urban Digital Economic Development

LIU Man-feng, YANG Jie, CHEN Liang

2022, 0(1):  102-112. 

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This paper conducts a quasi-natural experiment based on the data trading platforms successively built since 2014. By making use of the panel data from 277 cities in China from 2011 to 2018, it constructs a difference-in-difference model to examine the influence of data element market construction characterized by the construction of data trading platforms on the development of urban digital economy. The findings show that the construction of the data element market has significantly promoted the development of urban digital economy, and that this conclusion is still significant after a series of robustness tests, such as parallel trend test, counterfactual test, and instrumental variable method, etc. In a short term, the construction of data element market has expanded the inter-regional digital gap. The mechanism analysis indicates that the construction of data element market has significantly promoted the development of urban digital economy through promoting the integrated development of the manufacturing industry and the service industries and improving the efficiency of capital and labor allocation. Further heterogeneity analysis reveals that the influence of the construction of data element market on the digital economic development has significant heterogeneity in terms of digital infrastructure, innovation capabilities, and government intervention.

Free Trade Agreement, Trade Policy Uncertainty and Scope of Corporate Export Products

WANG Ming-tao, XIE Jian-guo

2022, 0(1):  113-124. 

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On the basis of a trade model of a multi-product heterogeneous enterprise, this paper analyzes the impact of trade policy uncertainty on the scope of corporate export products. Then, taking the China-ASEAN FTA as a quasi-natural experiment and making use of the trade enterprise data from China Customs during the period of 2001-2013, it conducts an empirical test. The results show that the decline of the trade policy uncertainty brought by the China-ASEAN FTA has significantly expanded the scope of export products of Chinese enterprises, and that this promoting effect has heterogeneity at the levels of corporate ownership and trade pattern. The results of mechanism analysis show that the decrease of trade policy uncertainty can promote the enterprises with higher productivity entering the market and the enterprises with lower productivity exiting the market, then the scope of corporate export products can be expanded by improving the corporate average productivity. Further study finds that the regional institutional environment can promote the active effect of the decrease of trade policy uncertainty on the scope of corporate export products. It is believed that to actively promote the construction of free trade area, establish orderly trade rules and eliminate the trade policy uncertainty are conducive to the growth of extension margin of corporate export, which can be the new driving source for China to promote its steady growth of exports.

Modern Accounting

Subsidiaries, External Services and Company Value in the Service Industry of Central Cities

Gao Xiang

2022, 0(1):  125-134. 

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By positioning in the small and medium-sized cities or the peripheral areas of large cities, manufacturing companies can obtain cost advantages in terms of land, labor, and environmental protection, but at the same time may be restricted by the backward development of local service industries. An important way for enterprises in remote areas to take advantage of the service industry in such central cities as Beijing, Shanghai, Guangzhou and Shenzhen is to set up service industry subsidiaries in those central cities. Taking the A-share manufacturing companies listed in Shanghai and Shenzhen stock exchanges from 2007 to 2019 whose headquarters are not in central cities as samples, this paper studies the influence of service industry subsidiaries located in the central cities of the manufacturing listed companies whose headquarters are not in central cities on the value of companies. The findings indicate that the listed companies that set up service industry subsidiaries in central cities have higher corporate values. Further intermediary mechanism study shows that the listed companies that set up service industry subsidiaries in central cities can better utilize the productive services of central cities, thereby increasing their operating income and gross profit margin, and ultimately increasing their corporate value.

Social Audit Regulation Platform: Construction Basis and Operating Mechanism

WU Zong-li

2022, 0(1):  135-148. 

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At present, the problems of poor audit quality and vicious competition by lower audit charges are becoming extremely serious. The main reasons lie in the attributes of social audit products, the particularity of audit market and the CPAs' finding business by their social relationships. The social audit attestation business has the attribute of public goods, which are easy to cause market failure and social hazard. Therefore, it is necessary for the government to govern the above problems. The tool of governance used by government is to make use of the concept of regulation to build an open, transparent, centralized and shared social audit regulation platform integrating the five aspects of “industry, price, quality, credit and payment”. This platform should be based on the sharing of big data information, form a price mechanism jointly participated by multi-agents, and adopt a diversified price supervision mechanism, so as to curb illicit competition at lower prices. It is necessary to rely on this platform to establish a quality incentive mechanism and construct a classified credit evaluation system, so as to improve audit quality and standardize audit charges. It is necessary to rely on this platform to create a“entrusted payment mode on the regulated platform”, cut off the benefit chain of“power rental”and“commission rebate”generated by“monopolizing business by social relationships”and“putting in storage by selection”, and weaken the management's control on price, selection and payment, so as to maintain the independence of certified public accountants and curb illicit competition in audit charges.