Table of Content

15 August 2023, Volume 0 Issue 8

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Theoretical Economics

The Challenges, Paths and Countermeasures Faced by the Construction of an Autonomous and Controllable Modern Manufacturing System

WANG Xia, FU Yuan-hai

2023, 0(8):  3-14. 

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An independent and controllable modern manufacturing system is the key to constructing a new development pattern and a modern economic system, as well as an inherent choice to achieve high-quality economic development and shape the new advantages in international competition. On the basis of redefining the concept and characteristics of an autonomous and controllable modern manufacturing system, this paper conducts a measurement and an analysis of the autonomous and controllable level of China's modern manufacturing system with the statistical data. The findings show that, firstly, compared with some developed countries, China is mainly engaged in the processing and assembly links in the global division of labor, resulting in a low level of technological independence in the overall manufacturing industry. Secondly, the autonomous and controllable level of the labor-intensive industries is high, and the industrial chain and the supply chain are relatively safe. Thirdly, the high technology-intensive industries and some resource-intensive industries have a higher degree of dependence on foreign countries, and there are risks in the core technological bottlenecks, and the industrial chain and supply chain being blocked. Fourthly, the construction of China's autonomous and controllable modern manufacturing system is faced with severe challenges brought by both internal and external factors, such as the loss of low-cost advantages, innovation having not yet become a new driving force for industrial development, changes in the international power balance, competitions among major countries, counter-globalization, the outbreak of COVID-19 and the new generation of information technology revolution, etc.. In the new development stage, the practical path of building an autonomous and controllable modern manufacturing system in China should be taking technological autonomy as the core, the security and controllability as the key, and the digital transformation as the means.

Research on the Influence of Unbalanced Housing Price on the Distribution Pattern of the Wealth in China

FU Dong-ping, SU Xiao

2023, 0(8):  17-29. 

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To standardize the wealth accumulation mechanisms is of great significance for China to promote common prosperity in stages and achieve high-quality economic development. By analyzing the typical facts that housing wealth difference affects family wealth inequality and based on the theoretical logic of rising house prices, appreciation of housing wealth and increasing wealth inequality, this paper makes a study with the data of China Household Finance Survey (CHFS) from 2011 to 2019. The findings show that housing price imbalance will aggravate the wealth inequality within the same type of families and between different types of families, which will seriously worsen the wealth distribution pattern in China.The dual difference between family wealth accumulation motivation and housing price level is the core factor that causes wealth inequality within the same type of family, and the dual difference between the wealth effect of the rising housing price and the housing price level is the key cause of wealth differentiation among different types of families. The numerical simulation shows that such measures as reducing the income gap and the urban-rural gap, alleviating the top concentration of wealth, effectively controlling housing investment behaviors, and effectively reducing the pressure of purchasing consumer housing have positive effects on standardizing the income distribution order and the wealth accumulation mechanism and improving the wealth distribution pattern in China.

Public Economics & Administration

Fiscal Logic, Value Orientation and Practice Approach from the Perspective of Chinese Modernization

ZHANG Wei-liang

2023, 0(8):  30-42. 

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Chinese modernization is a significant achievement in the long term exploration and practice of Chinese people led by the Party, which intensively reflects the law of socialist construction. It is also the inevitable choice to build China into a socialist power and achieve the great rejuvenation of the Chinese nation. Finance is the foundation and important pillar of national governance, playing a crucial role in the process of Chinese modernization. The report of the 20th National Congress of the Communist Party of China requires further improvement of the modern fiscal system to provide strong support for Chinese modernization. The scientific connotation of Chinese modernization lies in taking the leadership of the Party as the core, the scientific theory as the guide, the all-round development as the feature, and the human modernization as the goal. Therefore, promoting Chinese modernization with the finance not only has theoretical logic, but also has rich practical logic, which runs through the whole process of Chinese modernization. In terms of value orientation, the finance from the perspective of Chinese modernization adheres to the value orientation of the trinity of the people, the inclusiveness and the development. Along the way of practice, China's finance must take the leadership of the Party as the foundation, the Marxism as the basic guidance, the people as the center, and the deepening reform and innovation as the lasting power, so as to provide a solid guarantee for Chinese modernization.

Study on the Influence of Deviation between Tax Revenue and Tax Source on Regional Financial Equalization in China

WAN Ying, CHEN Heng

2023, 0(8):  43-56. 

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The taxation in production area of the value-added tax, the consolidated tax payment of corporate income tax, and the final settlement of personal income tax will all bring about the deviation between tax revenue and tax source. To solve this problem and to build a fiscal relationship between local governments with clear responsibilities and balanced financial resources is not only conducive to improving the tax sharing system and the unification of the domestic market, but also conducive to equalizing basic public services and achieving coordinated development of regional economies. Based on China's provincial panel data from 2000 to 2019, this paper examines the mechanism, scale and extent of the impact of the deviation between tax revenue and tax resource of VAT, CIT and PIT on the regional financial equalization. The findings show that this deviation has significantly expanded the local financial gap, and has a greater impact on the eastern provinces, the net tax inflow provinces, and the tertiary industry dominated provinces, while the financial pressure, the development of digital economy, and the reform of“replacing business tax with value-added tax”have all deepened the deviation. Therefore, it is suggested to re-establish the regional distribution system of VAT according to the principle of consumption place, to reform the cross regional income division system of CIT and PIT, to improve the horizontal tax distribution mechanism among local governments, so as to equalize regional financial resources.

Modern Finance

Can Facilitating Delisting Mechanisms Suppress the Share Price Crash Risk of Listed Companies?

SHI Wen-xiang, FANG Pei-jie

2023, 0(8):  57-69. 

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Well-designed systems are the key to preventing and resolving risks, but previous studies on the share price collapse risks of the listed companies have neglected the impact of delisting mechanisms on listed companies. Taking the new policy of mandatory delisting of listed companies implemented by China in late 2020 as a quasi-natural experiment, this paperconducts an empirical study by using the samples of the A-share listed companies in the non-financial industry from 2016 to 2022. The findings show that, firstly, after the implementation of the new delisting policy, the number of the exited A share listed companies has increased significantly; on average, the risk of stock price collapse has been suppressed, which is more obvious in the companies with positive net profit. Secondly, the restriction of the new delisting policy with stricter standards on the space for the manipulation of share price information has increased the information content of the share price, which is an important channel to reduce the risks of share price collapse; while the share-holding of the management is also conductive to suppressing the risks of share price collapse. Thirdly, the effect of the new policy is affected by the differences among the listed companies, the inhibiting effect of the new delisting rule on the risks of share price collapse is more pronounced in the enterprises that are non-state-owned, that are located in the highly centralized industries, that with weak external supervision, and that with higher internal governance level. The above conclusions suggest that to smooth the delisting mechanism for the listed companies is conductive to restricting share price volatility resulted from the collapses. Therefore, strengthening external supervision, optimizing internal governance, reducing information asymmetry are the important paths for the companies with non-ideal performance to reduce the risks of their stock price collapse.

A Study of the Impact of Finance Company of Enterprise Groups on the Financing Constraints of the Member Enterprises

ZHOU Xian-ping, LUO Rui-feng, PI Yong-juan

2023, 0(8):  70-82. 

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The role of the finance company in an enterprise group in alleviating financing constraints of the group members has been recognized by most scholars, but there is little research on the affecting mechanism of the finance company on the financing constraints and the risk heterogeneity. Based on the panel data of A-share listed companies on the main board from 2007 to 2021, this paper conducts aquasi-natural experiment with the financial companies established one after another in China' enterprise groups. The findings show that, firstly, the establishment of finance company can significantly alleviate the financing constraints of the member enterprises by reducing their debt and equity costs, smoothing the debt volatility, and improving debt maturity structure. Secondly, this impact will be strengthened when the competition in the banking industry increases, the information environment of enterprises deteriorates, and the monetary policy tightens. Thirdly, the role of financial companies in alleviating financing constraints has obvious risk heterogeneity, its effect is more significant in the groups with higher level of governance, lower operational risks and lower financial risks, which verifies the effect of“double-edged sword”of the financial companies. Therefore, it is necessary to be correctly aware of the role of finance companies, gradually and prudently promote the establishment of finance companies, facilitate the coordinated development of both the internal and external financial institutions, and strictly prevent risk contagion in finance company in order to better serve the real economy.

Business Administration

Research on the Cultivation Patterns of Entrepreneurial Enterprises' Organizational Resilience from the Perspective of Organizational Adaptation Theory

LI Shan-shan, HUANG Qun-hui

2023, 0(8):  83-94. 

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How to build organizational resilience to adapt to the discontinuous changes in the environment and maintain the sustainable development has become a major global issue that entrepreneurial enterprises urgently need to resolve. Taking 232 entrepreneurial enterprises as samples and introducing the organizational adaptation theory into the research framework, this paper makes use of the fsQCA method to explore the“different-paths-leading-to-the-same-goal”effect of responsive market orientation, proactive market orientation, opportunity interpretation, threat interpretation, adaptive research orchestration, and transformative research orchestration on the organizational resilience of the entrepreneurial enterprises. The results show that the antecedent configurations of the organizational resilience cultivation in entrepreneurial enterprises include four models: the“orientation”driven organizational resilience cultivation pattern, the“orchestration”driven organizational resilience cultivation pattern, the“orientation-interpretation”matching driven organizational resilience cultivation pattern, and the“orientation-orchestration”matching driven organizational resilience cultivation pattern. Thus, there are differences in the components of the organizational resilience cultivation patterns. In contrast, the“orientation-orchestration”matching driven pattern plays a more universal role in promoting organizational resilience of entrepreneurial enterprises. The above findings have enriched the research perspectives, approaches and methodology of organizational resilience, as well as providing a theoretical basis for entrepreneurial enterprises to practice the adaptive concept of organizational resilience cultivation.

Digital Transformation of Enterprises and the“Double High in Deposit and Loan”Anomaly: Evidence from Text Interpretation

MAO Jian-hui

2023, 0(8):  95-107. 

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In recent years, the phenomenon of debt-equity“double thunder”in China's capital market has been frequent, and some companies with higher amount of cash and short-term debt, known as“double high in deposit and loan”, have frequently defaulted, which have caused worries. How to cope with this type of economic phenomenon has become a common focus of attention from all sectors of society. Based on the data of of A-share listed enterprises in Shanghai and Shenzhen from 2011 to 2020, this paper examines the impact and transmission mechanism of enterprise digital transformation on the“double high in deposit and loan”anomaly, and further analyzes the differences of corporate governance effects of digital transformation under different scenarios. The findings show that the enterprise digital transformation can inhibit the“double high in deposit and loan”anomaly, and that the big data technology transformation can play a most significant role in inhibiting the “double high in deposit and loan”anomaly. The mesomeric effect test reveals that information transparency, long-term loans, financing constraints and financial instability are important transmission intermediaries for the relationship between the digital transformation of enterprises and the“double high in deposit and loan”anomaly. The heterogeneity study reveals that enterprise digital transformation has a more obvious inhibitory effect on the“double high in deposit and loan”anomaly of state-owned enterprises and enterprises in regions with higher digital levels. The above findings helpfully supplement the relevant researches on the economic consequences of digital transformation, and provide policy reference for enterprises to implement digital transformation and for governments to formulate digital policies.

Industry & Trade

The Output Effect of Core Industries in Digital Economy: A Comparison between Supply Side and Demand Side

LIU Yu

2023, 0(8):  108-121. 

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This paper measures and compares the output effects of the core industry of digital economy from both of the two perspectives of supply side and demand side.By sorting out the data in the input-output tables from the relevant departments in the years of 2012, 2017 and 2020, it establishes a comparable non-competitive input-output table of digital economy, including the four subcategories of the core industries of digital economy. Then by introducing the hypothesis extraction idea and the partial closure model methods, it constructs a supply-driven model and a demand-pulled model to measure the supply-driven effect and demand-pulled effect of the core industries of digital economy. The findings show that the demand-side output effect of the core industries of digital economy is dominant at present, but the growth momentum of the supply-side output effect is strong according to the trend. Whether on the demand side or on the supply side, the digital product manufacturing industry and the digital technology application industry play a decisive role in the formation of output effect of the core industries of digital economy, while the output effect of the digital factor driving industry and the digital product service industry is relatively weaker. Therefore, it is suggested to promote the development of various subdivisions of the core industries of the digital economy in an orderly manner, to stimulate the demand potential of various digital products and services, and to strengthen the long-term impact of the core industries of the digital economy on economic activities from the supply side.

Enterprise Digital Empowerment and Global Value Chain Embedding

GENG Jing-zhu, DU Ming-wei, LIU Wen-ge

2023, 0(8):  122-133. 

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Following the trend of the booming digital revolution and the reshaping of the global value chain, digital technology application has become an important power for Chinese enterprises to deeply engage in the global value chain. With the help of machine learning method, this paper makes use of the big data of the annual reports of Chinese listed companies from 2001 to 2016 to measure the digital transformation index of Chinese enterprises. Then on this basis, it empirically tests the impact of digital technology empowerment on the enterprises' embedding in the global value chain. The results show that digital empowerment can effectively promote enterprises to be embedded in the global value chain. The mechanism test reveals that digital technology empowerment can promote enterprise global value chain embedding through the two channels of the improvement of production efficiency and the improvement of supply chain efficiency. The heterogeneity analysis shows that digital technology empowerment has different effects on the value chain embedding due to the differences in enterprise ownership, enterprise scale, and export trade patterns. The expanded analysis shows there is a“U”-shaped non-linear relationship between the digital empowerment of enterprises and the global value chain position. According to the above conclusions, the government should accelerate the deep integration of digital technology and foreign trade enterprises, provide differentiated policy support to various types of enterprises, and further improve the quality of digital infrastructure, so as to lay a good foundation for Chinese foreign trade enterprises to achieve global value chain upgrade in the era of digital economy.

Modern Accounting

Can Supply Chain Digitization Promote Integration and Innovation among Enterprises on the Chain? A Quasi Natural Experiment Basedon Smart Supply Chain Policy

HUANG Hong-bin, ZHANG Yue-yang, XU Chen-hui

2023, 0(8):  145-156. 

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Integrated innovation is a new innovative approach that integrates digitization, networking, intelligence, and physical enterprises in the new situation. Currently, integration and innovation have become an important driving force for industrial transformation and upgrading, as well as high-quality economic development. Based on the data of A-share listed companies from 2013 to 2021, taking the supply chain innovation and application pilot work carried out by eight departments including the Ministry of Commerce in 2018 as a quasi natural experiment, this paper uses the PSM-DID method to investigate the impact of supply chain digitalization on the integration and innovation of the enterprises on the chain and its impact mechanism. The findings show that digitalization of the supply chain can reduce collaboration costs and strengthen knowledge flow, thereby promoting the integration and innovation among the supply chain enterprises. The heterogeneity analysis reveals that the higher the close relationship between the enterprises in the supply chain, the greater the strength of digital transformation of the enterprises, and the more significant the promotion of supply chain digitalization on the integration and innovation between enterprises on the chain will be.And the greater the protection of regional intellectual property rights, the more significant the promoting effect of supply chain digitization on the integration and innovation of enterprises on the chain will be. Therefore, it is necessary to increase the investment in the new infrastructures and fully leverage the demonstration and leading role of the pilot enterprises.The enterprises should strengthen the integrated application of digital technologies, such as the Internet of Things and Big data, in all the links of the supply chain, so as to better improve the level of integration and innovation between the enterprises on the supply chain.

The Impact of Social Trust on the Distribution of Corporate Cash Dividends

TIAN Ma-fei, XIAO Xing, LI Dan, LI Shu

2023, 0(8):  146-156. 

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Social trust is an important informal institution that has a significant impact on business behaviors. So, what effect does social trust have on the cash dividend distribution of enterprises? Taking Chinese A-share listed companies from 2009 to 2020 as samples, this paper explores the impact of social trust on corporate cash dividend distribution. The findings show that the lower the social trust in the regions where enterprises locate, the less inclined to distribute cash dividends the enterprises will be. And the higher the levels of regional financial development and the rule of law, the weaker the positive relationship between social trust and corporate cash dividend distribution will be. Further study reveals that lower social trust will raise the degree of financing constraints and the degree of earnings management of the enterprises, which can make them less inclined to distribute cash dividends. Therefore, it is necessary to continue to promote the construction of formal institutions to curb opportunistic behavior of listed companies, and to comprehensively promote the construction of an honest society to raise the level of social trust and reduce transaction costs and risks among economic individuals. In addition, enterprises should take the initiative to increase information disclosure, ease their own financing constraints, and reduce the phenomenon of “low” dividends and “zero” dividend.