Table of Content

15 September 2022, Volume 0 Issue 9

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Theoretical Economics

Local Governments Cooperation and Regional Resources Allocation Efficiency

YUAN Sheng-chao, LV Cui-cui

2022, 0(9):  3-14. 

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Building a unified national market is an important task and foundation for the promotion of the domestic circulation.Promotinglocal governments cooperation and removing local protection is of great significance to promoting the new dual-cycle development pattern with the domestic cycle as the main body. Based on the quasi-natural experiment of the policyshock of the Yangtze River Delta Economic Coordination Commission, this paper conducts an empirical study bymaking use of the panel data of 41 prefecture level cities in the Yangtze River Delta region from 1994 to 2018.Thefindings show that the government cooperation has reduced resources misallocation by 26.7% on average.This policy effect of government cooperation on resource allocation begins to appear in the fourth year after joining the Coordination Commission, and it is persistent. Compared with the newly joined cities, the reducing effect is greater in the original cities than that in the newly joined cities.Thisimproving effect is significant in both large and medium-sized cities, while in the small cities, the improving effect is not significant.Theimproving effect of government cooperation on resource allocation in large cities is not as good as that in the medium-sized cities.The closer the distance to the corecities, the stronger the improving effect of government cooperation on resource allocation.The results of the mechanism analysis indicate that government cooperation can reduce resource misallocation by reducing market segmentation and promoting regional industrial division.

A Study of the Impact of Digital Economy on Urban Economic Growth

XI Ming-ming, LIANG Qing, FU Yu

2022, 0(9):  15-27. 

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Digital economy is playing an increasingly prominent role in promoting the economic growth and the changes of quality and efficiency. Based on the establishment of the dynamic theory of the impact of digital economy on urban economic growth, this paper conducts an empirical analysis by making use of the panel data of 254 cities in China from 2011 to 2019. The findings show that the impact of digital economy on economic growth has not only the dynamic effect, but also the spatial spillover effect. The data analysis indicates that the impact of digital economy on urban economic development of different regions has heterogeneity. The spatial spillover effect of the impact of digital economy on economic growth in the neighboring cities at the inter-provincial border is significantly higher than that in neighboring cities within the province, and the spatial spillover effect of digital economy in the neighboring cities in the central and western regions is significantly higher than that in the eastern region. The double difference estimation with the Broadband China as the policy shock further verifies the robustness of the above-mentioned conclusion. This shows that, unlike the traditional economic development modes, the input and accumulation of digital economy can release the constraints of geography and transportation, which will be more conducive to the agglomeration development of urban clusters and the construction of inter-provincial economic zones, especially the economic growth and the regional coordinated development in the central and western regions.

Public Economics & Administration

Does the Tax on Social Insurance Increase the Stickiness of Corporate Income Tax Burden: A Test from the Perspective of Labor Cost

XIAO Jian-hua, XIE Lu-hua

2022, 0(9):  28-39. 

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Reducing the stickiness of corporate income tax burden is conducive to strengthening the sense of access to the policies for corporate tax and fees and releasing the cumulative effect of tax and fee reduction policies. Using the data of the listed enterprises from 2008 to 2020, this paper constructs a year-by-year PMS model and a multi-period DID model to empirically analyze the impact of“tax on social security”on the stickiness of corporate income tax burden. The results show that labor cost stickiness plays a mediating role between“tax on social security”and the stickiness of corporate income tax burden, and that the implementation of“tax on social security”has enhanced the stickiness of corporate income tax burden. The tax burden of corporate income tax is more viscous for service enterprises, small-scale enterprises and enterprises with lower social security contributions; and the tax burden of corporate income tax is more viscous for enterprises with lower regional financial self-sufficiency, lower wage level and lower participation rate of social security. Therefore, it is necessary to formulate differentiated tax policies, use modern technology to strengthen social security collection and management; to oblige enterprises to sign employment contracts with their employees, so as to regulate labor practices; to weaken the motivation of enterprise for surplus management, and strengthen the awareness of enterprise tax cost management; to improve the relevant supporting policies, such as giving certain supporting policies to financially difficult regions and enterprises in difficulties, moderately increasing tax credits for social security contributions, etc..

Information Technology, Tax Risk Management and Enterprise Tax Burden

WANG Jia, LI Wen

2022, 0(9):  40-51. 

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Strengthening tax risk management is an effective measure to improve enterprise tax compliance, as well asthe important content to further deepen the reform of tax collection. Based on the data of A-share non-financial enterprises listed in Shanghai and Shenzhen stock exchanges, this paper systematically analyzes the impact of tax risk management based on modern information technology on the tax burden of micro-corporates. It is found that strengthening tax risk management is beneficial to standardizing the tax declaration behavior of enterprises, thus increasing the tax burden of enterprises. The heterogeneity of the impact of tax risk management on corporate tax burden is that tax risk management has no significant impact on corporates with too high or too low tax burden, however, tax risk management has a greater impact on corporates with stronger relationship between government and corporates, and optimizing the allocation of human resources of tax authorities can better exert the governance effect of tax risk management. Therefore, in order to improve the governance effect of tax risk management, tax authorities should make full use of modern information technology in information acquisitionand analysis, so as to improve the ability of tax risk management; strengthen the management of tax risks, so as to raise the costs of tax evasion of enterprises; and optimize the allocation of human resources in tax authorities and give full play to the governance effect of tax risk management.

Modemn Finance

Green Finance, Analysts Focus and Financing Constraints Relief of New Energy Enterprises

WANG Zhen-jie, LV Zhi-jun

2022, 0(9):  52-63. 

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Under the background of the goals of “Carbon Peaking and Carbon Neutrality”, how can the green finance play the guiding role in the development of the new energy enterprises has become an important subject. Unlike the existing literatures which focus on the availability of green credit for individual companies, this papertakes the top-down research logic from the active guidance of the government to the independent play of the enterprises and introduce the regional green finance development index as an exogenous variable, so as to examinethe relationship between green finance, analysts focus and financing constrains of the new energy enterprises. The findings show that green finance can alleviate the financing constraints of new energy companies, and thatanalystsfocus can play the role of “information transmission effect” and “supervising governance effect” in it. It is also found from further analysis that the green finance can significantly improve the level of capital investment and R&D investment of the new energy enterprises, but no significant impact on financial investment, without the risk of ridding of the reality to virtuality. Green finance can also significantly improve the quantity and quality of green innovations of the new energy enterprises. Therefore, the government should actively promote the reform of green finance, improve the supervision and restraint mechanism on financial institutions, strengthen the construction of the analyst teams, so as to support the development of new energy enterprises and accelerate the adjustment of energy structure.

Asset Portfolio Selection: The Role of Extreme Loss Constraints

JIANG Chong-hui, ZHANG Jian-fu

2022, 0(9):  64-74. 

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It is of great theoretical value and practical significance to construct appropriate investment strategies to better deal with the impact of extreme risk events by taking the possibility of the occurrence of future extreme losses into account in the investment decision-making process. This paper builds and seeks solution to the asset portfolio selection model on the basis of extreme loss constraints. It conducts a numerical and empirical analysis by using the data of monthly return rateof the ten industry indexes of HS300 from January 2005 to August 2020, which extends the research of asset portfolio selection based on the underneath risk control. The result shows that the efficient portfolio based on the extreme loss constraints satisfies the K+2 fund separation theorem.The extreme loss constraints can increase the skewness of efficient portfolio returns at the expense of mean variance efficiency.The extreme loss constraints can also improve the out-of-sample average return and the Sharpe ratio of the minimum variance portfolio (MVP); the MVP with extreme loss constraints can deliver a higher net Sharpe ratio than the equal weight portfolio and the traditional MVP even if the transaction cost be taken into consideration. On account of this, the investors can consider to take the extreme loss constraints into the investment decision-making process, so as to obtain better investment performance with risk control.

Business Administration

Research on the Mechanism of Platform Enablement on Enterprises Digital Transformation

YANG Da-peng, WANG Jie-xiang

2022, 0(9):  75-86. 

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The existing researches have observed the fact that platform enablement can make up for the shortage of resources and capabilities in the digital transformation of the traditional enterprises. However,such problems as how the platform can promote the enablement and what is the mechanism behind the platform are still waiting for in-depth analysis. By analyzing the case of Alibaba Tao factory platform enabling the clothing manufacturing enterprises to havedigital transformation, this paper explores the process mechanism of platform enablement on enterprises digital transformation. The findings show that platform enablement promoting enterprises' digital transformation includes three stages: eliminating information asymmetry, optimizing resource allocation, and promoting complementary innovation. The platform can eliminate information symmetry and improve its user experience through production factors online and order visualization.The resources allocation optimization and the corporate operation efficiency improvement can be achieved through production capacity online and supply-demand matching recommendation. The complementary innovation can be realized through process reshape and intelligent optimization, so as to improve the collaboration level of the whole link of enterprise business. Platform enablement is not the unilateral output of platform enterprises, but the bilateral co-creation of platform enterprises and traditional enterprises. This conclusion has important reference value for the traditionalenterprise to select the digital transformation strategies and for government to formulate and optimize the relevant policies.

How Does Paradoxical Leadership Affect Employee Creativity?

CAI Wen-zhu, ZHOU Nan

2022, 0(9):  87-99. 

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The innovation and development of enterprises is inseparable from employee creativity. However, the current environment in which enterprises are located is changing from a single, stable and competitive model to a diversified, complex and cooperation-competition model, and contradictions are becoming increasingly prominent. Paradoxical leadership, as a new leadership behavior with both contradiction and integrated thinking, has positive effects on employee creativity, but its underlying mechanism needs to be further explored. This paper conducts an empirical test of314 survey data collected at different time periods, so as to explore the relationship between paradoxical leadership and employee creativity; and it examines the mediating and moderating effects of job remodeling and adjusting focus from the perspective of employee active behavior and individual traits.The findings show that paradoxical leadership can positively promote employee creativity,and that job remolding plays a partial mediating role in the relationship between paradoxical leadership and employee creativity. Employee adjusting focus can play an adjusting role in the relationship between paradoxical leadership and job remodeling and in the indirect relationship between paradoxical leadership and employee creativity through job remolding,in other words, when employees have higher promotion adjusting focus or lower prevention adjusting focus, theirjob remolding behavior will be more likely promoted by paradoxical leadership, thus their creativity level will also be promoted.

Industry & Trade

Regional Technological Progress and the Embedding of Domestic and International Dual Value Chains

HE Ya-xing, YU Jie

2022, 0(9):  100-112. 

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Technological progress is an important impetus for economic growth, and it is essential for it to play a role in promoting the embedding of dual value chains in the process of building a new development pattern. This paper analyzes the impact of technological progress on the embeddedness of dual value chain both theoretically and empirically.The findings show that, firstly, technological progress has promoted the domestic value chain through the singledomestic value chain division of labor and the dual division of labor in the integrated domestic value chain and the global value chain. Secondly, the impact of technological progress has regional and sectoral heterogeneity. The technological progress in the western region is conducive to inhibiting its embedding in the shallow global value chain; and the technological advances in the eastern region have the same effect on the embedding of domestic value chains as the full sample. Technological progress in the high-tech manufacturing sector has not made it more deeply embedded in the value chain division of labor, especially the most complex dual division of labor.The technological progress in other sectors is conductive to inhibiting its embedding in the shallow global value chain, promoting it to participate more deeply in the division of labor of the domestic value chain. Thirdly, the growth of technical efficiency is the main way that technological progress affects the division of labor in the dual value chain.

Digital Infrastructure and Service Export Sophistication: An Empirical Study Based on the Emerging Service Trade

WANG Meng-ying, CONG Cong, ZHANG Cheng

2022, 0(9):  113-123. 

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Taking theemerging service trade as the research object, this article uses the cross-border panel data to explore the impact of digital infrastructure on the sophistication of the emerging service export andits mechanisms. The findings show that digital infrastructure has significantly promoted the sophistication of the emerging service export, and this conclusion is still valid after a series of robustness and endogenous tests. The results of the mechanism test show that digital infrastructure can improve the sophistication of the emerging service export through the three channels of reducing information costs, increasing labor productivity, and increasing digital service export. The results of the heterogeneity analysis indicate that the promoting effect of digital infrastructure increases with the improvement of the local technological innovation level. Compared with the regions withhigher economic development level,the promoting effect of digital infrastructure on the regions with lower economic development level is more significant. The impact of digital infrastructure on the sub-divided emerging service industries is different; Digital infrastructure can significantly improve the export sophistication of the maintenance service, the intellectual property use fee, and the individual culture and entertainment service industry, while no significant impact can be found in the insurance and pension service, the finance service, and the telecommunications, computers and information service industry. Therefore, in the process of promoting the high-quality development of the service trade, it is necessary not only to increase the investment in the emerging service trade but also to pay attention to the important influence of digital infrastructure.

Modem Accounting

An Analysis of the Hierarchical Structure and Path of the CPA Serving Shareholders' Right to Know Their Financial Affairs

TANG Yuan-yuan, WANG Hong

2022, 0(9):  124-135. 

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The right to know their financial affairs is the core of shareholders' right to know, however, the existing company law and its judicial interpretation cannot provide clear “empowerment” rule and sufficient “enabling” conditions to the shareholders, so that they cannot realize their right to know their financial affairs. From the two perspectives of “empowerment” and “enabling”, this paper explores the remedy approach to shareholders' right to know their financial affairs. Firstly, on the basis of the existing rule of the “empowerment” of the right to know, this paper divides the hierarchical structure of shareholders'right to know their financial affairs from the perspective of passive reception and active acquisition.Next, in order to let the shareholders exercise their empowered right to know, the system of selecting and appointing accounting experts shall be introduced, the shareholders shall be given the right to select and appoint accounting experts, and certified public accountants shall be hired to assist them in exercising their right to know their financial affairs. Finally, this paper constructs the realization path of CPA serving shareholders' right to know their financial affairs based on the hierarchical structure of the right to know.

Can National Audits Help to Reduce Carbon Emissions?

ZHU Jin-yu, LI Yue-ying

2022, 0(9):  136-148. 

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To play the role of “economic physical examination” is the positioning of the function of national audit in the new era. It is pointed out in The 14th Five-Year Plan for the Development of National Audit Work that national audit should wellperform the supervising function during the low carbon green development. Then, does the physical checkup function of national audit have the governance function on carbon emission? By making use of the panel data of 30 Chinese provinces from 2006 to 2018, this paper explores the impact of national audit on carbon emission and its spatial effect. The results show that national audit can reduce local carbon emissions, and it also has a significant inhibiting effect on the carbon emissions of neighboring regions. It is found through further research that there exist differences in the governance effects of national audit on carbon emission reduction on both sides of Hu HuanyongLine and in the regions with different financial conditions. In addition, it is necessary to pay enough attention to the governance function of national audit on carbon emission, combining the natural endowments and financial conditions to actively promote cross-regional coordinated audit work.