Table of Content

15 June 2022, Volume 0 Issue 6

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Theoretical Economics

Big Data, Digitization and Control: A Political Economy Analysis of Digital Capitalism

CAI Wan-huan, QIAO Cheng-zhi

2022, 0(6):  3-11. 

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In the era of digital capitalism, digital capital uses its own digital technology and capital power to penetrate the society, and affects and controls the behavior of each individual consumer by collecting and analyzing consumers’ Internet feedback data, such as consumption level and consumption tendency, etc.. Its ultimate goal is to fully control the overall production, consumption, circulation and distribution process of the society by capital, making the control and influence of capital reach an unprecedented level. However, this kind of control also produces new social contradictions and problems, such as new contradictions between labor and capital, more large-scale overproduction, and so on, which aggravates the crisis of capitalist society. Digital technology has a tendency of developing towards the opposite side of human being, the fundamental reason for it lies in that the existence of private ownership leads to the fact that technology is only mastered by a small number of people and only serves a small number of people.

Can Internet Penetration Improve Human Capital Misallocation?

LIU Shi-yang, WU Yu-ming, WU Qing-shan

2022, 0(6):  12-25. 

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To optimize human capital allocation is an important way to promote the high quality economic development. This paper makes a theoretical and empirical study based on the data of China Family Panel Studies. The findings show that Internet penetration can significantly reduce the degree of individual job mismatch and reduce job mismatch through the information improvement effect and the thick labor market effect. It is also found in further distinguishing the types of mismatch that Internet penetration mainly reduces the probability of individual over-education. The result of the heterogeneity analysis shows that the Internet penetration has significantly reduced the job mismatch degree in the samples of the western region, the urban area and the private enterprises. In addition, it has reduced the job mismatch degree in the male sample, the sample of persons under 50 years old, and the sample of rural households. The above results show that Internet popularization can help to improve the efficiency of human capital allocation and promote high-quality employment, thereby promoting economic development.

Public Economics & Administration

Promoting the Modernization of Tax Collection and Administration in the New Era with High Quality

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

2022, 0(6):  26-36. 

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The practice of China’s tax modernization has accumulated some successful experiences for the modernization of tax collection and administration, while the current national conditions and world conditions put forward requirements of the time for the modernization of tax collection and administration. To rely on the practical experience and combining the requirements of the time is helpful to grasp the consistent persistence and continuous development of tax modernization at the new development stage, so as to better understand the core contents, important breakthroughs, and practical strategies of tax collection and administration, which can help to promote the modernization of tax collection and administration with high quality. The core contents of the modernization of tax collection and administration are accurate law enforcement, targeted service, precise supervision, and sincere co-governance. The important breakthroughs are reflected in the four aspects：the tax collection and administration from cooperation and merger to synthesis, the deep integration of tax service, law enforcement and supervision, the transformation of tax governance into digitalization, intelligence and smartness, and the tax reform and innovation from gradual type to systematic integration. The practical strategies are to standardize the tax law enforcement standards, to speed up the process of tax legislation, to strengthen the co-governance measures for tax collection, and to expand the effect of tax collection and administration reform.

Will Local Fiscal Pressure Affect the Stickiness of Corporate Tax Burdens? An Explanation of the“Painful Feeling”of Corporate Tax Burden

ZHUANG Xu-ying, ZHOU Zi-xuan

2022, 0(6):  37-49. 

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Alleviating the painful feeling of corporate tax burden and the stickiness of tax burden will help the enterprises to expand production scale and improve innovation capabilities. Recently, China has achieved remarkable results in the reduction of taxes and fees, however, the financial pressure of various local governments is increasing in the context of economic downturn, and enterprises still feel that they are“overtaxed”. In view of this situation, this paper makes use of the sample data of A-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2020 to study the impact of fiscal pressure on the stickiness of corporate tax burden. The results show that the taxation stickiness commonly exists in China’s A-share listed companies, and that a lagging period of fiscal pressure has a significant impact on the sticky corporate tax burden. If the financial pressure continues to increase, the tax authorities may focus on the large scale enterprises or enterprises with a high degree of tax avoidance, resulting in greater tax stickiness and increased“painful feeling”of tax burden. This is mainly manifested that when the corporate profit increases, the marginal increment of the noted corporate income tax is significantly larger than the marginal decrease when the profit decreases. Therefore, the government should establish a coordination mechanism for reducing taxes and fees and alleviating local financial pressure, accelerate the construction of local main tax system, coordinate the tax reform and tax collection and management system, and reduce the elastic room of tax collection and management, so as to reduce the stickiness of corporate tax burden. Meanwhile, enterprises should improve their tax compliance, foster their own tax core competitiveness, and rationally conduct tax planning activities to reduce tax bearing stickiness.

Modern Finance

Government Factors and Corporate Leverage Issues: The Logic of China

MENG Shi-chao, WANG Qing

2022, 0(6):  50-62. 

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Corporate leverage is endogenous in a specific economic operation mode and is an indicator of the current economic health. The government factor behind the corporate leverage issue deserves our attention. However, the mainstream researches often discuss leverage issues based on Western analytical paradigms, and have insufficient insight into China’s national conditions. In China, government factors are mostly institutional factors, which can affect corporate leverage from three aspects: one is the government-guided, investment-driven economic growth mode, this macro-mechanism can affect corporate leverage through the return-risk characteristics of investment projects; two is the governance method of the government and the state-owned economic entities, this micro-mechanism can affect corporate leverage through the corporate governance of both banks and enterprises; the third is the dual resource allocation structure created jointly by the macro and micro-mechanisms, this structure can affect corporate leverage through various costs or frictions in the loan market. Corporate leverage indicates the short-term stability and long-term growth capacity of the economy. The counter-cyclical corporate leverage can withstand crisis shocks but also can accumulate debt risks; the sustainability of the existing economic operation model is the“eye”of the leverage problem. The adjustment and control of corporate leverage should address both the symptoms and the root causes. Only by deepening reforms, optimizing the original model, promoting economic transformation, and combining the efficient market with a promising government can the“deleveraging in growth”be achieved.

Can Venture Capital Shareholding Restrain the Entity Enterprises from Real to Virtual? Empirical Evidences from Chinese listed Companies

XIAO Jun, ZHU Mi

2022, 0(6):  63-74. 

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By making use of the data of China’s A-share listed companies in Shanghai and Shenzhen stock markets from 2007 to 2020, this paper employs the panel regression model to empirically study the impact of venture capital holdings on the post-listing financialization of real enterprises and its mechanism. The findings show that venture capital holdings can significantly inhibit the post-listing financialization behavior of entity enterprises, among which the non-state-owned, or jointly invested, or highly reputed venture capital holdings have a stronger inhibitory effect on the post-listing financialization of entity enterprises. The results of the mechanism test based on the intermediary effect confirm that venture capital holdings can inhibit the financialization of real enterprises after listing mainly through the dual mechanism of alleviating the financing constraints of real enterprises and reducing agency costs. By employing the Heckman two-stage method and the PSM method to deal with potential endogeneity problems, the results of the empirical test are still robust. Therefore, it is suggested that the regulatory authorities should further optimize the relevant policies and regulations, and give full play to the venture capital in restraining entity enterprises from financialization.

Business Administration

The Application of Mohist Thought in Business Management: The Governance of“Universal Love”of China’s Enterprises in the Global Economic Integration

ZHANG Chi, LIU Tai-gang

2022, 0(6):  75-88. 

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The trend of global economic integration has brought more opportunities and challenges to Chinese enterprises. The core value concept and the ultimate value have become one of the factors for enterprises to gain a foothold in the global market. According to the logical structure of“ethical interpretation-value construction-theoretical practice”, this article elaborates the economic ethics, rule and order, and cognition and response in the real applications of enterprises with Mohist theory. The Mohist school takes the“universal love”as its core and establishes the value of treating righteousness and profitableness in the same way, so that it can take“profiting the world”as its purpose to dialectically explore the unity of opposites between private interests and public interests on the basis of adapting to the original profit-seeking motives of enterprises. Then the business managers can fulfill their social responsibilities on the basis of satisfying their private interests. Taking the Mohist“Ten Theory”as a reference, enterprises follow the internal laws of the market in terms of personnel systems, market strategies, and crisis response, so as to achieve sustainable and healthy development of the enterprises. In dealing with specific issues, the Mohist’s thinking mode of“grasping both the same and different sides of things unbiasedly at the same time”can help enterprises to look at things objectively and comprehensively in the increasingly complex and uncertain market environment. From the perspective of management science, there are also new interpretations of Mohist allusions, which form a theoretical logic and risk perception that are different from Western management science, so that business management has a more flexible and pragmatic approach to handle specific matters.

Commercial Credit Distortion and Stock Price Crash Risks: Evidences Based on Large Customers Defaulting on Payments to Small and Medium-Sized Enterprises

ZHOU Chen-Song

2022, 0(6):  89-99. 

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Being in arrears is a major obstacle to the high-quality development of the medium-sized enterprises. Taking China’s small and medium-sized listed companies from 2007 to 2020 as samples, this paper examines the impact of commercial credit distortions on share price collapse risks. It is found that with the increase of the amount owed by large customers, the risks of future stock price collapse of small and medium-sized listed companies are significantly increasing. The reason lies in that commercial credit distortion would raise the earnings management level of SMEs, thereby the risk of stock price collapse will be increased. The results of further study show that when the accounting conservatism of the company is improved, the positive correlation between the large customer arrears and the risk of stock price collapse will be somewhat weakened; while the excessive supply of company commercial credit would further intensify the positive impact of the large customer arrears on the risk of stock price collapse. Therefore, the state should further strengthen the rectification of commercial credit distortion, improve the information disclosure level of the SMEs, and reduce the risks of stock price collapse of SMEs.

Industry & Trade

Environmental Regulation, Innovation and Development Level of Logistics Industry

LIU Hao-hua, CHEN Xiu-ling

2022, 0(6):  100-110. 

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The importance of the logistics industry to economic development is becoming more and more obvious, meanwhile, as a highly polluting industry, its impact on the environment has also become an important breakthrough point in the transformation and development of the logistics industry. Innovation is one of the important means to solve this problem. Based on the data of China’s 285 prefecture-level cities, this paper constructs an interaction term model and a threshold model to verify the relationship between environmental regulation, innovation, and the development level of the logistics industry. The empirical results show that the interactive effect of environmental regulation and innovation has a significantly negative impact on the development of the logistics industry. When the level of innovation is not high, the excessive environmental regulations will hinder the development of the logistics industry. The results of the heterogeneity test show that the negative effect of the interaction effects and the positive effect of innovation on the development of the logistics industry are significant in the samples with clear and quantitative description of environmental targets, but not significant in the samples with unclear and no quantitative description of environmental targets. The findings of the threshold regression show that the environmental regulation has a first-negative-then-positive influence on the development level of the logistics industry through the threshold variable of innovation. Therefore, when formulating environmental regulation policies, the government should adopt appropriate environmental regulation intensity and measures according to the regional innovation levels.

A Study of the Impact of Belt and Road Digital Economy on the Locational Choice of China’s Outward Foreign Direct Investment

ZHANG Ming-zhe

2022, 0(6):  111-122. 

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Based on the constructed index of the development of digital economy along the Belt and Road route, this paper investigates the influence of digital economy development along the Belt and Road route on the locational choice of China’s outward foreign direct investment (OFDI), and at the same time discusses the heterogeneity and mechanism of the impact. The findings show that the digital economy has become an important locational factor of the host countries, and the locational choice of China’s OFDI prefers the host countries along the Belt and Road route with higher levels of digital economy development on the whole. In terms of regional heterogeneity, the developments of digital economy in Southeast Asia, West Asia and the Middle East have positive impacts on the locational choice of China’s OFDI, namely, it can promote China’s direct investment to this region; while the impact on the developments of digital economy in Central Asia, Mongolia and Russia are not significant, and it has produced inhibiting effects in South Asia and Central and Eastern Europe. In terms of the mechanism, the development of digital economy along the Belt and Road route can positively influence the locational choice behavior of China’s OFDI by improving the institutional quality and enhancing the human capital of the host countries. In the context of digital economy, these research conclusions are of great practical significance for China to realize high-quality joint construction of the Belt and Road through the locational choice of OFDI.

Modern Accounting

Compilation of China’s National Natural Resource Balance Sheet: Based on the Ecological Footprint Approach

WANG Jun-jie

2022, 0(6):  123-138. 

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According to the five principles, i.e., materiality, natural attribute, stock attribute, non-renewable and non-duplication accounting, the resources accounted for in the natural resource balance sheet (NRBS) should include six categories, i.e. cultivated land, forest land, grassland, wetland, water area and minerals. Land assets, rights and liabilities can be defined as land ecological footprint, biocapacity and ecological deficit in the ecological footprint approach, and the environmental liabilities can be defined as consumed mineral resources. This kind of definitions can clarify the concepts of assets, liabilities, rights and interests of land resources and minerals (environment), and their quantities and values are easier to be checked. To calculate the value of land resources by using the present earning value method and the equivalent factor method of ecosystem value can not only consider the economic value of the land, but also the non-economic values, such as climate regulation and so on, so as to avoid the underestimation of the land value. A set of NRBS compiled on the basis of China’s relevant data from 2006 to 2020 shows that the equity value of China’s natural resources is about 68 times the corresponding annual gross domestic production (GDP), an order of magnitude higher than the physical capital stock. The comparison with other compilation results can illustrate that it is feasible to use the ecological footprint method to compile the NRBS, which is relatively simple, highly operable, and the results are more credible.

Green Credit Policy and Enterprise Financing Lease

NING Jin-hui

2022, 0(6):  139-148. 

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With the help of the quasi-natural experiment of the implementation of the Green Credit Guidelines 2012, this paper adopts a difference-in-difference model to empirically test the impact of green credit policies on the financing lease of heavily polluting enterprises. The results show that the green credit policy will make the heavily polluting enterprises increase the scale of financing lease. Further analysis shows that the green credit policy has significantly reduced the long-term bank loans of the heavily polluting enterprises, so that the heavily polluting enterprises have to choose the method of financing lease to make up for the lack of long-term funds. The findings of the heterogeneity analysis show that, compared with the large-scale and low-financing-constrained heavily polluting enterprises, the impact of green credit policy on the financing lease of the heavily polluting enterprises with small-scale and high financing constraints is more obvious.