Table of Content

15 October 2022, Volume 0 Issue 10

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Theoretical Economics

Inflow of Migrant Population and Local Residents'Preference for Redistribution

LIN Wen, DENG Ming

2022, 0(10):  3-14. 

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The preference for redistributionof the residents is an important factor influencing government's redistribution policy, and this influencing factor has received extensive attentionin the academic world. Based on the data of residents' preference for redistribution provided by China General Social Survey and the data of migrant population proportion at the level of prefecture-level cities in China, this paper conducts an empirical study. The findings show that, in general, the inflow of migrant population has significantly restrained thepreference for redistribution of the local residents. At the same time, the preference for redistribution of the agriculturally registeredlocal residents is more affected by the influx of migrant population than the non-agriculturally registeredlocal residents. The impact of the inflows of migrant population on the preference for redistribution of local residents shows significant heterogeneity among local residents with different education levels. The results of the mechanism study show that there isa heterogeneous transmission mechanism in the preference for redistribution of local residentsby the inflow of migrant populations.On the one hand, theinflow of migrantpopulation has strengthened the local residents' redistributive preferences through raising their risk-averse preferences and lowering their equity beliefs; on the other hand, the inflow of migrant population has also suppressedthe local residents' redistributive preferences through raising their expectations of upward mobility and lowering their group trust.

High-Quality Human Capital and China's Urban Innovation Capacity: Evidences from University Enrollment Expansion Policy

HE Xiao-gang, HUANG Ying-shan, ZHU Guo-yue

2022, 0(10):  15-27. 

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The high-quality human capital is an important support for the implementation of the strategy of“strengthening the country with science and technology”. The results of a quasi-natural experiment based on the exogenous policy construct of the enrollment expansionin high education in 1999 and astudy withDID method show that the human capital expansion brought about by the university enrollment expansion policy has effectively increased the innovation capacity of cities, and that this effect has increased significantly over time. A mechanistic analysis shows that the expansion of human capital has significantly increased the skill level of workers, while skilled labor further induces the agglomeration effect of innovation factors and enhances the R&D capacity within cities, thus contributing to the increase of innovation level in cities. A heterogeneity analysis shows that human capital expansion has a greater effect on innovation in the eastern cities and the cities with a better innovation base, faster growth in capital goods imports and a higher degree of marketisation. In addition, by industry, human capital has a greater contribution to the increase in innovation capacity of urban secondary industries. Therefore, when further promoting the reform of market-based mechanisms, it is also important to focus on the supporting industrial policies and at the same time increase the policy support towards the less developed regions, so as to promote the coordinated industrial and regional developments.

Public Economics & Administration

Intergovernmental Budget: Essence and Challenge of Fiscal Transfers Allocation

ZHOU Mei-duo

2022, 0(10):  28-39. 

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Optimizing intergovernmental financial relations and establishing a scientific and standardized budget system are two important aspects in deepening financial reform. The analysis of the traditional budget shows that the concept of hierarchical budget is easy to lead to the separation of fiscal transfers allocation and budget process, which will lead to a series of problems such as duplicate budget, budget fragmentation, soft budget constraints and so on. While“intergovernmental budget” as a cross level budget concept can help to realize the interconnection of fiscal transfers allocation and budget process. The theoretical analysis shows that“intergovernmental budget”has the characteristics of dual budget subjects, two budget dimensions, up-down interactive budget process, uncertain income of the aid receivers and soft constraints on expenditure. Since the 18th National Congress of the Communist Party of China, the reform in the financial field has made many improvements in the above five aspects, but the“intergovernmental budget”still needs to be optimized. Therefore, it is necessary to further clarify the functional division of budget participants, refine the allocation of special transfer payments, absorb the“bottom-up”demands by the“top-down”budget process, improve the income certainty of the aided party, balance the expenditure control and flexibility, and share intergovernmental budget information, so as to continuously improve the effectiveness of intergovernmental budget.

The Asymmetric Impact ofHeterogeneous Government Subsidies on Enterprise R&D Input and R&D Output

YAO Lin-xiang, PENG Rui-juan, XU Jian-bin

2022, 0(10):  40-51. 

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Improving the innovation capability of enterprises is an important part of the in-depth implementation of the innovation driven development strategy, and government subsidies are an important means to stimulate innovation and development. Therefore, under the background of insisting on the innovation driven development, it is of greater realistic significance to explore the innovation performance of enterprises from the perspective of the heterogeneity of government subsidies. Based on the unbalanced panel data of Chinese manufacturing enterprises from 2012 to 2020, this paper empirically analyzes the asymmetric impact and the action mechanism of heterogeneous government subsidies on enterprise R&D input and R&D output. The results show that both innovation subsidy and non-innovation subsidy can significantly promote the R&D investment of enterprises, but the effect of innovation subsidy is significantly greater than that of non-innovation subsidy. The innovation subsidies have a significant positive impact on enterprise R&D output, but the impact of non-innovation subsidies on enterprise R&D output is not significant. The results of the mechanism analysis show that innovation subsidies can not only reduce the innovation cost of enterprisesdirectly, but also significantly affect their acquisition of venture capital, thus promoting enterprise innovation. Therefore, in order to give full play to the positive role of government subsidies in enhancing the enterprises' innovation capabilities, it is necessary to optimize the structure of government subsidies and gradually increase the scale and intensity of innovation subsidies; to improve the selection and evaluation mechanism for government subsidy projects and improve the efficiency of innovative subsidies continuously; and to build a public platform for innovation subsidies and give full play to the signaling effect of innovation subsidies.

Modern Finance

Population Structure and International Capital Flow: Natural Interest Rate Channel

DU Jie, ZHANG Yu

2022, 0(10):  52-63. 

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The demographic factor is a non-negligible factor affecting long-term capital flow. At present, China is not only facing the gross problem of the total population about to peak and in the long term possibly shrinking sharply, but also the structural problem of declining birthrate and aging. The rapid aging of population will pull down China's interest rate in the equilibrium state, i.e., the natural interest rate. When constructinga general equilibrium theoreticalmodel to depict the existence and the operation mechanism of the natural interest rate channel, it is found that the changes of population structure can affect the relative changes of the natural interest rate in the equilibrium state, thereby affecting the long-term international capital flow,that is, the natural interest rate is an important channel through which population changes affect international capital flow. With the rapid increasing of China's population aging, the labor force has changed from a relative surplus to a relative scarcity, which will affect the labor-capital input ratio of production activities, thereby driving the labor rate of wages to rise, and the natural interest rate to stabilize after a rapid decline. In the open economy, China will gradually become a net capital outflow economy and face the dilemma of net capital outflow. The impact of population changes on the economic and social development is tremendous and is hardly to reverse. Therefore, it is necessary for China to speed up the construction of a fertility support system to increase the fertility rate, promote the policy of delaying retirement, and make a good reserve of monetary policy tools.

The Credit Model Optimization of Finance Supporting Real Economy: Based on a Comparative Study of Commercial Credit and Bank Credit

XU Hui, RONG Chen, PAN Gao-yuan

2022, 0(10):  64-75. 

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Commercial Credit and bank credit are two basic credit models. In the industrial cycle of the real economic sector, the supply and financing of funds are required to combine with each other vertically and horizontally, that is, bank credit and commercial credit are indispensable and compatible with each other. This paper makes a theoretical analysis from the four dimensions, i.e., bank credit influencing factors, commercial credit and bank credit, industry-finance integration and enterprise operating efficiency, industry-financial integration and enterprise risk-taking ability. It also conducts an empirical test with the data of China's listed companies from 2010 to 2020. It is found that enterprises with state-owned capital participation and enterprises with higher market share are more likely to obtain bank credit.Commercial credit has an important complementary feature to bank credit, and enterprises lacking short-term loans usually use more commercial credit to make up for their fund shortage; companies that obtain more short-term loans provide more commercial credit to the downstream companies.The use of commercial credit by enterprises will generate a positive impact on the profit margin of their operating income; however, the use of bank credit will generate a reverse impact on the profit margin.The enterprises obtaining commercial credit will enhance their risk-bearing capacity, while enterprises providing commercial credit will reduce their risk-bearing capacity. Therefore, it is necessary to establish and improve the commercial credit system, promote the development of commercial credit, strengthen the construction of the credit system, and promote the innovation of the commercial credit system.

Business Administration

The Impact of Out-of-Stock of New Products on Consumers' Post-Purchase Regret

LIU Jian-xin, FAN Xiu-cheng, ZHANG Cheng-hu

2022, 0(10):  76-89. 

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Out-of-stock of new products is often regarded as an important context cueby consumers to generate their impulsive purchases, which in turn leads to their post-purchase regrets. Atpresent, however, the researches on it are seriously insufficient. Based on counterfactual thinking theory and meta-emotional experience theory, this article constructs a model of moderated duel mediator, exploresin-depth the internal mechanism and its boundary conditions underlying the impact of out-of-stock of new products on consumer post-purchase regret, and adopts the experimental research method to conduct an empirical test. The findings of the three experiments show that out-of-stock of new products will affect consumers' post-purchase regret, and that the demanded out-of-stock (DOOS) of the new products is easier to lead consumers to generating more regrets than that of thesupplied out-of-stock（SOOS）. The counterfactual thinking and meta-emotional experience would jointly mediate the impact of out-of-stock of new products on consumers' post-purchase regret. The consumer narcissism would moderate the dual mediating effects of counterfactual thinking and meta-emotional experience, i.e.,the higher-level narcissist are easier to let the mediator effect of meta-emotional experience holding adominantposition, while the lower-level narcissist are easier to let the mediator effect of counterfactual thinking holding adominantposition. These conclusions are conductive not only to deepening and enriching the theory of new product out-of-stock, but also to the promotion of the development of the related management practices.

The Effect of Ethical Leadership on the Workplace Incivility of Employees

CAO Yuan-kun, YU Jiang, LV Bei

2022, 0(10):  90-101. 

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The bottom line mentality that pursues profits only while neglectingother equally important matters in the organization is the focus of attention in the theoretical and practical circles, whilefewer empirical studies can be found to explore how to reduce the impact of bottom line mentality onworkplace incivility from the perspective of leadership style. From the perspective of social cognitive theory, this paper constructs a moderated mediation model of ethical leadership to reduce workplace incivility by restrainingemployees' bottom-line mentality and discusses the mediating role of bottom-line mentality between ethical leadership and workplace incivility and the moderating effect of employees' harmonious passion. Through the analysis of the matching data of 93 leaders and 316 employees at two time frames, it is found thatethical leadership can help to reduce employees' bottom-line mentality, thereby weakening employees' workplace incivility. The employees' harmonious passion can negatively moderate the effect of ethical leadership onemployees' bottom-line mentality and the indirect impact of ethical leadership on employees'workplace incivility through the bottom-line mentality.

Industry & Trade

The Innovation Decision-Making under Economic Policy Uncertainty: From the Perspective of EnterpriseTenacity

LI En-ji, ZHANG Chen, WAN Xiang-yu

2022, 0(10):  102-114. 

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Under the conditions of economic policy uncertainty, how to strengthen development tenacity and improve innovation level is an important issue that enterprises are faced with. By employing the common factor model, this paper estimates the tenacity of listed companies in China and investigates the influence of economic policy uncertainty(EPU)on the innovation activities of enterprises with different tenacitiesand their mechanisms. The findings show that the differences of the level of enterprise tenacity would generate threshold effects on the impact of the economic policy uncertainty on enterprise innovation activities. When EPU rises, enterprises with lower-tenacitywill reduce their innovation activities, while enterprises with higher-tenacitywill increase their innovation activities. The threshold effect of enterprise tenacity exists in different market regions and enterprises of different property rights nature. There are significant differences in the response to EPUof enterprises with different tenacityin terms of innovative income expectations, financing constraints, and management's risk preference, which is also the reason for the occurrence of the threshold effect in enterprise tenacity. In addition, enterprise tenacity can be used as an alternative to the internal governance of the enterprises to some extent, which send positive signals to investors, thereby helping enterprises obtain more financing. The innovative activities under the EPU conditions will help to improve the operation performance of enterprises, but the negative impact on the bankruptcy of enterprises is not obvious.

A Study on the Impact of the Application of Robots on China's Export Upgrading

DU Liang-sheng, MA Wen

2022, 0(10):  115-125. 

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The applications of artificial intelligence technologies such as robots and the transformation and upgrading of export trade are both important issues of common concern in the academic circles at the stage of high-quality economic development. However, fewer literatures have explored the impact of enterprises' use of robots on China's export upgrading from a micro perspective.Based on this, by matching the data from the Database of Chinese Industrial Enterprises and the data from the Database of China Customs from 2000 to 2013, this paper studies the impact of the use of robots on export upgrading with the import of enterprise robots as a proxy variable. It is found that the application of industrial robots has significantly promoted the export upgrading of enterprises measured by export technology complexity, and the conclusion is still robust after replacing the measure index, replacingsamples at different dimensions and considering the problem of endogeneity. Further heterogeneity test shows that the promotion effect of the use of robots on export technology complexity is more obvious in local enterprises, general trade enterprises, high-tech industries and industries with lower competition level. The impact mechanism analysis shows that the use of robots can improve the productivity of enterprises, reduce variable production costs, improve the technical complexity of enterprises' export, and promote export upgrading.

Modern Accounting

The Influence of Large Shareholders' Subscription on the Pricing of Private Placement: An Analysis of Unified Price Auction Mechanism Based on theCompetitive Issuance Mode

YANG Ming-jing

2022, 0(10):  126-136. 

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According to some literatures, private placement is a tool for large shareholders to transfer their interests. However, under the bidding issuance mode of private placement, major shareholders participating in the subscriptioncannot make offers but only subscribe based on the bidding results of investors and according to the number of shares they have promised to subscribe in advance. Therefore, the room and way for major shareholders to control the issuance price will be restrained. Then, will the participation of major shareholders in the subscription of private placement have an impact on investors' quotation behavior and the issuance price? Taking the event of private placement with the unified price auction mechanism from 2006 to 2021 as the research samples, this paper tests the impact of major shareholders' participation in subscription on investors' quotation behavior and issuance pricingunder the competitive issuance mode. The findings show that the participation of large shareholders in the subscription releases a positive signal to investors, improves the level of investors' quotation and the number of subscriptions, thereby increasing the issuance price and reducing the issuance discount. The mechanism test shows that the major shareholders affect the issuance discount by influencing the shape of the investor demand curve, rather than the collusion between the major shareholders and the investors participating in the bidding, or the major shareholders hiding bad news before the subscription.

Controlling Shareholders'Equity Pledge, Reductionof Taxes and Fees and thePhenomenon of High Cost of Real Enterprises

XIN Chun-hua, ZHANG Xiao-yu, ZU Nan-nan

2022, 0(10):  137-148. 

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Under the present background of“high cost”of entity enterprises and thereductionof taxes and fees, this paper takes the data of A-share entity enterprises from 2012 to 2020 as research samples to empirically test the impact of controlling shareholders' equity pledge on the cost stickiness of entity enterprises and the influencing mechanism based on the organizational legitimacy theory and the agency theory. It also explores the regulating effectof the reduction of taxes and fees in it. The findings show that the controlling shareholders' equity pledge has significantly intensified the cost stickiness of real enterprises and that tax cuts and fee reductions have relieved the positive effect of the controlling shareholders' equity pledge on the cost stickiness of real enterprises. It is found from the mechanism test that during the period of equity pledge, the controlling shareholderswill influence the cost stickiness mainly out of legal intention rather than hollowing out intention. The reduction of taxes and fees can help to ease the legal intention of the controlling shareholders. Therefore, it is necessary to endow the real enterprise with certain regulation legality and strengthen the supervision of equity pledge.