Table of Content

15 March 2022, Volume 0 Issue 3

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Theoretical Economics

Development Ideas, Industrial Structural Changes and Economic Growth: A Case Study of Hong Kong of China and Singapore

ZHU Lan, QIU Shuang, WU Zi-wei

2022, 0(3):  3-13. 

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Ideas can determine the way out. Thoughts (cognition or social ideas) are the important reasons determining the performance of a country's economic development. From the perspective of government development strategy and industrial policy, the new structural economic theory can well explain the structural transition routes of Singapore and Hong Kong of China and the phenomenon of economic growth polarization. Through policy combing and data analysis, it can be found that Singapore government is a circumstance-oriented government, following a comparative-advantage development strategy and formulating industrial policies to guide industrial transformation and upgrading, by which its manufacturing competitiveness has been obviously improved. However, the government of Hong Kong of China is a laissez-faire government, lacking effective industrial policies. Due to its implementation of active non-interventionist policy after the reversion of sovereignty, it consciously formulates its industrial policy to guide the industrial upgrading but violating the comparative advantages, leading to the industrial upgrading being blocked and the manufacturing competitiveness being declined continuously. By further comparing the performances at such aspects as upgrading of factor endowment structure, income distribution, openness and macroeconomic stability between Hong Kong of China and Singapore, it can be found that the economic performance of Singapore is significantly better than that of Hong Kong of China. The above conclusion can offer some implications to China's leading cities to carry out the new development concept and correctly handle the relationship between government and market in the new era.

How Does the Digital Economic Policy Affect the Innovation of Manufacturing Enterprises: From the Perspective of Suitable Supply

TAO Chang-qi, DING Yu

2022, 0(3):  16-27. 

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The digital economic policy is an important tool for the government to promote the development of the digital economy and the innovation of manufacturing enterprises. The empirical research based on China's 2012-2018 data shows that the suitable supply of the digital economic policy has significantly promoted the innovation of manufacturing enterprises. After a series of robustness tests, the above conclusions are still valid. The innovation incentive effect of the suitable supply of the digital economy policy is more significant in the samples of high-tech enterprises, enterprises in the central region and non-state-owned enterprises. The results of a mechanism analysis show that the suitable supply of digital economic policy can promote the innovation of manufacturing enterprises through the three paths: promoting the deepening of the division of labor, optimizing the allocation of innovation factors, and promoting the diversified aggregation of the high-end producer service industries. In addition, the suitable supply of digital economic policy has a significant inhibitory effect on corporate tax burdens, indicating that part of the company's new investment in innovation may be derived from the tax reduction effect of the suitable supply of digital economic policy. When the development level of digital economy reaches a certain stage, the innovation incentive effect of the suitable supply of digital economy policy appears, however, the“flooding”type of digital economy policy supply has a restraining effect on the innovation of manufacturing enterprises.

Public Economics & Administration

The Model Improvement and Practice Path of the Legalization of China's Financial Supervision in the Context of National Governance

DENG Hui, ZHU Qiu-xiang

2022, 0(3):  28-39. 

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Financial supervision is the key link and important guarantee of the modern financial system. However, China's executive-led financial supervision model at present is still unable to meet the practical needs. Therefore, strengthening the legislation for financial supervision and achieving the legalization of financial supervision are becoming the important issues in the construction of China's ruled by law. In order to meet the demands of the time in the national governance system and the governance ability for the modernization construction, it is urgent for China's administrative financial supervision mode to move into the vertically and horizontally three-dimensional financial supervision mode that giving considerations to both the NPC and the administration, and to realize the financial supervision type of joint and coordinated supervisions by the NPC supervision, the administrative supervision, the judicial supervision, and the social supervision, each performing its own function. On this basis and from the vision of practical evolution, this paper takes the opportunity of amending The Regulations on Punishment of Financial illegal Acts, which is the fundamental basis in the domain of financial supervision. The logic key points to realize the legalization of financial supervision under the new mode is as follows: to construct a standardized and unified legal system of financial supervision; to further clarify the responsibility and authority of each main body of the financial supervision; to improve the coordination and cooperation mechanism of financial supervision; to perfect the measures, means and procedures of financial supervision; and to improve the internal and external accountability mechanisms of financial supervision.

Collaborative Governance, Local Governments' Green Transformation and Air Quality Improvement

ZHAO Yi-xin, MIAO Xiao-lin

2022, 0(3):  40-52. 

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It is of great practical significance to construct a modern environmental governance system and accelerate the coordinated governance of local governments. Based on the panel data of 284 prefecture level-and-above cities in China from 2004 to 2019, this paper regards the air pollution joint-prevention and joint-control policy as a public policy experiment implemented by the collaborative governance model to investigate its impact and action mechanism on the improvement of air quality. The results show that the implementation of the collaborative governance model has significantly improved urban air quality, which is still valid after a series of robustness tests. The findings of a mechanism analysis show that the collaborative governance plays an institutional incentive role in promoting the green transformation of local governments, which is mainly reflected in promoting the transformation of local governments' industrial structures, energy structure adjustments and production technology innovations. In addition, this incentive effect is particularly obvious in economically developed areas and provincial capital cities with strong innovation ability. The results of an extensive analysis show that the establishment of a joint meeting system has a restrictive effect on the behavior of local governments, which is conducive to improving the efficiency of air pollution control, but the restrictive effect of formal cooperative action dominated by signing cooperation agreements is relatively weak. Therefore, in order to improve the efficiency of the collaborative governance and improve urban air quality, we should not only expand the implementation scope of the collaborative governance, but also strengthen the substantive collaborative action and reinforce the supporting guarantee mechanism, so as to further stimulate the institutional incentive efficiency and the behavior restraints.

Modern Finance

Environmental Regulations and Corporate Financial Assets Allocation: Evidences from the Promulgation of the New Environmental Protection Law

ZHANG Chao, SONG Hua-sheng

2022, 0(3):  53-65. 

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Based on the data of China's A-share listed companies and taking the promulgation of the new Environment Protection Law as the starting point, the findings of this research show that this policy has significantly increased the financial assets allocation of the heavily-polluting enterprises, leading them to reducing their non-liquid financial assets while increasing their liquid financial assets. This empirically supports the“reservoir”motive of enterprises' holding financial assets. The specific influencing mechanism is as follows: the environment regulations will increase the environmental uncertainty and debt financing difficulty of the heavily-polluting enterprises, and further strengthening their precautionary motives to increase financial assets. Besides, the increase in the allocation of liquid financial assets improves firms' future financial performance, while the increase in the allocation of non-liquid financial assets damages firms' future financial performance, thus environmental regulations will improve the future financial performance through optimizing the allocation structure of corporate financial assets. It is found from further analysis that faced with strict environmental regulations, the non-state-owned enterprises, the small and medium-sized enterprises and the enterprises at the eastern region of the heavily-polluting type will increase their financial assets more significantly. Therefore, we should clearly understand that the allocation of different financial assets will exert differentiated impacts on corporate operation and development, we should be on guard that the excessive non-liquid financial assets held by enterprises will cause damages, and we should encourage the enterprises to deal with the impacts brought by the environmental regulations through holding liquid financial assets.

Financial Accelerator, Expected News Shocks and Choice of Monetary Policy Rules

JIN Xiang-yi, ZHANG Wen-fei

2022, 0(3):  66-77. 

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By constructing a DSGE model that includes financial accelerator mechanism and expected news shocks, this paper deduces the regulatory effect of the monetary policy rules of the scalar type, the price type and the mixed type on the macro economy, so as to explore the optimal monetary policy rules in the current economic environment. The results show that the model containing expected news shocks has a better fit to China's macroeconomic trends, which can better reflect the macroeconomic fluctuations under the financial accelerator mechanism. Compared with unexpected monetary policy shocks, the expected monetary policy shocks have stronger macro-control effects under different monetary policy rules. In addition, the welfare loss analysis shows that the mixed monetary policy rules can minimize the welfare loss caused by the implementation of the monetary policy, which means that the mixed monetary policy rules conform to the law of economic development, and that it is also the direction of China's future monetary policy development and transition.

Business Administration

A Study of the Impact of Additional Comments Function on eWOM Users

XU Da-peng, LIU Xu-dong, HONG Hong

2022, 0(3):  78-88. 

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With the continuous development of e-commerce, online word-of-mouth has become an important channel for consumers to know the product information. In recent years, in order to improve the quality of online comments, the e-commerce platforms have launched the function of additional comments one after another. By making use of the real data obtained from the “AutoHome” platform and adopting the research method of natural experiment, this paper explores the impacts of additional comments function on the users' behavior of both the supply and demand sides for the word-of-mouth from the perspectives of both readers and reviewers. The results show that for the readers, the additional comments function can improve readers' perceived usefulness of the comments, so as to reduce their time costs spent in searching of the useful information; and for the authors, the additional comments function can stimulate the enthusiasm of the reviewers to make comments, urging them to write more objective comments. On the whole, the introduction of the additional comments function can optimize the traditional commenting system. The conclusion of this study has not only enriched the theoretical researches in the field of online comments, but also provided decision references for the online WOM platforms to improve the commenting function.

Can Non-Punitive Supervision Restrain the Management's Tone Manipulation? Empirical Evidences Based on Annual Report Texts

FU Wen-bo, ZENG Hao

2022, 0(3):  89-101. 

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The governance effect of inquiry letter supervision in stock exchanges on non-financial textual information has aroused little research focus. By making use of the data of China's A-share non-financial listed companies from 2015 to 2019, this paper empirically tests the impact of the supervision of the financial report inquiry letters in the stock exchanges on the management's tone manipulation and its mechanism. The results show that the financial report inquiry letters can effectively restrain the management's tone manipulation, and the more the letters received by the company, the more significant the impact will be. When the characteristics of the inquiry letters are distinguished, the results show that the more the number of questions involved in the inquiry letters, the more the risky matters, the more continuous receipt of letters, and the more names of the accounting firms being called, the more significant the restraint on the management's tone manipulation will be. The results of a mechanism test show that the financial report inquiry letters can restrict the management's tone manipulation mainly through the“regulatory supplementary effect”and the“market pressure effect”. Further research reveals that the governance effect of financial report inquiry letters on the management's tone manipulation will spill over to the auditing-related enterprises positively and to the director-related enterprises negatively.

Industry & Trade

Trade Policy Shocks and Quality Upgrading of Export Products of China's Digital Industry

XU Tong-sheng, MA Tian-yi, YU Chang-long

2022, 0(3):  102-113. 

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By making use of the WITS tariff database and the BACI micro trade database and applying the theoretical model of import product quality frontier distance, this paper studies the impact mechanism of the tariff rate policy and the import product quality frontier distance on the export product quality based on the calculation of the export product quality upgrading standardization index of China's digital industry. By constructing the dynamic panel data model of systematic generalized moment estimation at the micro level, the results of the empirical study show that the quality of China's export products presents an upward trend, which is driven by the adjustment of the trade policy and the narrowing of the frontier distance of import product quality. The reduction of the tariff rate has a great policy impact on the price fluctuation of unit products, which has a further cross impact on the frontier distance of the imported product quality, resulting in the realization of the upgrading of export product quality. The results of the heterogeneity analysis show that the policy effects of the high-quality and low-quality frontier products, the high-tariff and low-tariff products and the products of different digital industries are quite different.

“The Belt and Road”Initiative and the Aggregation of Producer Services: Endogenous Aggregation or Exogenous Aggregation

CAO Xiang, MA Li, YU Sheng-guo

2022, 0(3):  114-125. 

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The development of producer services is the key to promoting the transformation of China's economy to high-quality growth. This paper regards“the Belt and Road”Initiative as a quasi-natural experiment and makes use of the panel data of 280 prefecture-level cities across the country from 2005 to 2018 to examine the impact of“the Belt and Road”Initiative on the producer services aggregation of Chinese node cities along“the Belt and Road”route, the action mechanism, and the heterogeneity of the aggregation methods with the difference-in-difference method. The findings show that“the Belt and Road”Initiative has a significant and positive impact on the aggregation level of the producer service industry in the node cities along the route. This conclusion is still valid after the ancient Silk Road was used to construct instrument variables to deal with the potential endogenous problems, and after other counterfactual tests and multiple robustness tests were conducted. “The Belt and Road”Initiative has significantly improved the level of aggregation of the producer service industries in the node cities along the route through the three channels, i.e., promoting the development of information technology, optimizing the industrial structure, and strengthening the human capital. The promotion effect of“the Belt and Road”Initiative on the aggregation of producer services industry in the node cities in the eastern and western regions is significant, but not significant in the node cities in the central region.“The Belt and Road”Initiative has a positive impact on the exogenous aggregation of the producer service industry in the node cities in the eastern and western regions, while the impact on the endogenous aggregation is not significant.

Modern Accounting

Accounting Information Comparability and Capital Allocation Efficiency in Business Groups

SHU Guang, MA Zhong, WANG Long-feng

2022, 0(3):  126-139. 

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From the perspective of accounting information comparability among the members in the business groups, this paper investigates the impact of the accounting information comparability among the members in the business group on the capital allocation efficiency of the group. The findings show that the higher the accounting information comparability among the group members, the higher the capital allocation efficiency in the business group will be. The higher the degree of diversified operation of the business group, the more significant the role of the accounting information comparability in the business group in promoting the group capital allocation efficiency will be. The results of further research show that the higher degree of the separation of the ownership and control rights of the ultimate controllers will weaken the positive impact of the accounting information comparability among the group members on the capital allocation efficiency.

Auditors' Initial Auditing Service and Audit Quality: From the Perspective of Career Care

ZHANG Xue-hua

2022, 0(3):  140-148. 

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To guarantee the audit quality of the auditor's initial auditing service is one of the important issues in the audit quality control of the accounting firms. Based on the career care theory, this paper examines the audit quality issues of the auditor's initial audit service by taking China's listed companies and their annual report signing auditors as samples. The results show that the career starting point effect generated from the auditor's initial auditing service can make up for the lack of personal experience, and thus can guarantee the auditing independence and the audit quality. The longer the growth period of the auditor, the better the audit quality will be. The findings of the expanded analysis indicate that the“same city”relationship between auditors and clients would interfere with the auditing independence of the auditor's initial auditing service and reduce the audit quality.