Table of Content

15 September 2023, Volume 0 Issue 9

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Theoretical Economics

Urban Roundabout Production and Urban-Rural Common Prosperity

HE Ya-xing, WANG Song, LI Dan

2023, 0(9):  3-15. 

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The mutual determination of demand and supply implies that the level of roundabout production determines the level of productivity and the income level, thus determines the level of common prosperity, and the market size determined by the degree of common prosperity in turn determines the level of roundabout production. Based on the data of Chinese cities from 2003 to 2014, this paper conducts an empirical study by integrating common prosperity into the Smith-Younger theorem. The findings show that, firstly, the improvement of the urban roundabout production brought about by the increase in the length of the production chain has a great promoting effect on the realization of urban-rural common prosperity. Secondly, in the process of the urban roundabout production promoting the urban-rural common prosperity, the urban roundabout production has a greater improving effect on the income growth of rural residents, thus effectively avoids the fast expansion of the urban-rural income gap; besides, the urban roundabout production also promotes the urban-rural common prosperity through the promotion of the growth of total factor productivity. Thirdly, by examining the impact of the trend of the urban roundabout production, namely, the deepening of the division of labor, it is found that the embedding in global division of labor can not only promote the improvement of the degree of urban prosperity, but also effectively narrow the urban-rural income gap. The above results indicate that, to realize the urban-rural common prosperity from the perspective of division of labor, it is necessary to accelerate the integration of cities into the production chain for the coordinated division of labor, especially to maintain high-level opening-up and participate in the global division of labor.

Research on the Path of Digital Transformation to Promote the Green Development of the High-End Manufacturing Industry

JIANG Xu-han, ZHANG Li-ping

2023, 0(9):  16-27. 

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The green development of China's high-end manufacturing industry is of great significance for the sustainable development of the national economy. Taking the digital economy as the research background and thehigh-end manufacturing industry as the research object, this paper constructs agreen development evaluation index system by combining the characteristics of the high-end manufacturing industry, so as to describe the dynamic evolution process of digital transformation on the green development of the high-end manufacturing industry from the perspective of enterprise dynamic capability. The findings show that the digital transformation has a positive impact on the green development of China's high-end manufacturing industry. This conclusion is still valid after controlling the endogeneity and conducting a robustness test. The mechanism analysis reveals that in the process of digital transformation, the high-end manufacturing industrycan reduce resource consumption, cut down environmental pollution and promote green technology innovation mainlythrough the dynamic capability path of enterprises, thus promoting the green development of the high-end manufacturing industry. The regulatory effect reveals that sound internal control can positively adjust the relationship between digital transformation and green development of enterprises. The heterogeneity analysis finds that Digital transformation has a more significant role in promoting green development of the high-end manufacturing enterprises in the eastern region, where senior executives have financial backgrounds and where the two positions are separated. Therefore, it will empower China's high-end manufacturing industry to develop in a green way by widely applying digital technology tools to improve the green financial system, establishing a digital system management system to optimize the transformation environment, cultivating digital social capital to regulate enterprise resource allocation, and building a digital innovation network to reduce regional development differences.

Public Economics & Administration

Green Fiscal Policy and Green Innovation of Enterprises: A Quasi-Natural Experiment Based on the Pilot Project of“Comprehensive Demonstration Cities of Energy Conservation and Emission Reduction Fiscal Policy”

ZHANG Yue

2023, 0(9):  28-41. 

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Enterprise green innovation is an important engine for the high-quality economic development in the new era. To explore the impact of green fiscal policy on enterprise green innovation is an important topic to promotethe high-quality economic development. Taking the pilot project of“Comprehensive Demonstration Cities of Fiscal Policy on Energy Conservation and Emission Reduction”as a quasi-natural experiment, this paper conducts an empirical analysis of the impact of the green fiscal policy on enterprise green innovation. The results show that the pilot projects in the demonstration cities have significantly promoted corporate green innovation, and this kind of promoting effect presents a dynamic and continuous feature of increasing year by year. Further study reveals that the promoting effect of the pilot cities on the enterprise green innovation is more stronger in the state-owned enterprises, the large-scale enterprises and the enterprises located in the non-resource-based cities, and that the pilot cities can improve the corporate financial performance and environment performance through promoting enterprise green innovation. Therefore, it is necessary to pay attention to the promoting effect of the green fiscal policy to promote green innovation of enterprises, to stimulate the fund allocation and innovation compensatory effect to smooth the channels through which green fiscal policy plays its role in promoting enterprise green innovation, to raise the degree of marketization and the level of the development of the digital economy and to let the green fiscal policy play a role in promoting enterprise green innovation, and to formulate differentiated green fiscal policy, so as to safeguard the accurate application of the policy effect.

How Fiscal Decentralization and PromotionCompetition Affects Residents' Satisfaction with Public Services

CHEN Jing, LI Jun-yu, YUAN Chi-ping

2023, 0(9):  42-54. 

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To study the impact of fiscal decentralization and promotion competition on the public services for residences is conductive to the improving of the degree of residents' satisfaction with the public services, thereby increasing people's well-being. By matching the individual micro-data of Chinese General Social Survey (CGSS) from 2013 to 2015 with the data of the prefecture-level cities, this paper empirically analyzes the affecting mechanism of the vertical fiscal decentralization and the horizontal promotion competition onthe residents'satisfaction with public services. The findings show that the vertical fiscal decentralization and the horizontal promotion competition jointly affect the residents' satisfaction with the public services, and that there is a significant complementary relationship between the two. The increase of the degree of competition makes the fiscal decentralization produce a positive influence on the residents' satisfaction with public services, however, insufficient competition will play an inhibiting role. It is found when analyzing the selection of national civilized cities that the special treatment action can increase the local promotion competition pressure in a short period, thus playing a regulating role in the fiscal decentralization; however, this kind of role is not significant in the long term. Therefore, in the areas where effective horizontal competition is difficult to form, it is necessary to let the central government play a role of overall planning, promote the equalization of public services, and at the same time strengthen the regional competition in the public service area, give full play to the residents in supervising the governments, promote the long-term evaluation mechanism in the area of public services, and establish a dynamic appraisal mechanism of the special treatment action.

Modern Finance

Fintech, Information Quality and Herd Behavior of Institutional Investors

WEI Cheng-long, GUO Bei-nan, GUO Cheng-cheng

2023, 0(9):  55-68. 

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The traditional research paradigm of the formation mechanism of herd behavior believes that incomplete information is an important factor causing the herd behavior of institutional investors. Whether the use of fintech in the capital market can improve the quality of information and thus reduce the herd behavior of institutional investors is of great significance for achieving high-quality development of the capital market. From the three dimensions of fintech attention, the number of fintech companies and fintech policy support, this paper comprehensively measures the level of fintech development in each province. Based on the empirical research of China's A-share listed companies from 2011 to 2021, the findings show that fintech has effectively reduced the herd behaviors of institutional investors, that the improvement of information balance, information disclosure, information transmission and information acquisition is an important way for fintech to play a role. The heterogeneity analysis reveals that fintech shows a stronger inhibitory effect on institutional investors' herding behavior in the companies located in the central and western regions and regions with lower financial marketization, the companies belonging to high-tech industries and the non-mainboard listed companies, as well as the sub-samples of sellers' herding. Further analysis shows that fintech can alleviate the negative economic effects such as lower stock pricing efficiency and crash risks caused by the herd behavior of institutional investors. Therefore, it is necessary to further strengthen the application of fintech in the capital market and provide modern scientific and technological support for creating a highly transparent information environment.

Does Monetary Policy Uncertainty Affect the Asset Securitization Behavior of Commercial Banks

HUANG Fei-ming, YAN Wen-zhen

2023, 0(9):  69-82. 

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Asset securitization provides commercial banks with new sources of funds and enhances their ability to expand credit, thereby expanding their channels for credit financing and contributing to the effectiveness of monetary policy transmission. Conversely, whether the uncertainty brought about by frequent adjustment of monetary policy will affect the securitization behavior of commercial banks as transmission intermediaries is a question worthy of in-depth discussion. Using the data from the samples of 147 commercial banks in China from 2012 to 2021, this study examines the relationship between monetary policy uncertainty and the securitization behavior of commercial banks. The results indicate that the increase of monetary policy uncertainty has a positive promoting effect on commercial banks' asset securitization business. The mechanism analysis reveals that monetary policy uncertainty can hamper bank liquidity creation, increase bank credit risks, and reduce the scale of shadow credit, thereby promoting the development of asset securitization business. The heterogeneity analysis shows that the promoting effect of monetary policy uncertainty on asset securitization is significant in urban commercial banks, nationwide banks, and banks with high credit ratings. It has a promoting effect on both listed and non-listed banks, but the impact is more significant on non-listed banks. Furthermore, the development of digital finance will weaken the role of monetary policy uncertainty in promoting bank securitization. Therefore, during the periods of increasing monetary policy uncertainty, the asset securitization business is beneficial in mitigating the negative impact of policy uncertainty on banks and stabilizing their development.

Business Administration

Limited Partnership Agreement Framework and Corporate Innovation: Evidences from Chinese Listed Companies on GEM

CHEN De-qiu, HOU Xin-hao

2023, 0(9):  83-96. 

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Along with the rapid development of China's capital market and the decentralization of equity ownership in listed companies, the fight for control of these companies has become increasingly fierce. Against this background, the limited partnership agreement framework has become an important means for the founder teams to consolidate their control of the listed companies, and has frequently appeared in the ownership structure of the listed companies. Based on the data from Chinese listed companies on GEM from 2012 to 2021, this study explores the long-term impact of the limited partnership agreement framework on corporate development from the perspective of corporate innovation. The empirical results show that the limited partnership agreement framework is positively correlatedwith the number of corporate patent applications. Further research indicates that when the limited partnership enterprises in the limited partnership agreement framework are employee shareholding platforms, they have a stronger impact on the promotion of corporate innovation. The limited partnership agreement framework can enhance corporate innovation capacity throughthe two mechanisms of reducing enterprise agency costs and improving their risk-bearing capacity. Compared to the central and western regions, the positive impact of limited partnership agreement framework on corporate innovation is stronger in the eastern region. The above-mentioned conclusions not only confirm the positive role of the limited partnership agreement framework in consolidating the control rights in listed companies and promoting corporate innovation, but also provide important enlightenment for enterprises to design ownership rights, and for government to manage and improve the limited partnership systems.

Is There an Intelligent Bonus in Enterprise Executive Compensation

NI Yi-ning, MA Ye-qing, WANG Zi-feng

2023, 0(9):  97-110. 

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The impact of enterprise intelligent development on enterprise executive compensation has attracted wide attention from all walks of life. By selecting the samples of China's listed companies, this paper measures the degree of enterprise intelligent development, and empirically tests the impact of enterprise intelligent developmenton enterprise executive compensation. The findings show that there is an inverted U-shaped relationship between enterprise intelligent development and executive compensation. The impact of enterprise intelligent development on enterprise executive compensation is more significant in the technology-intensive enterprises, enterprises with high R&D intensity, private enterprises, large scale intelligent enterprises, enterprises with higher human capital level, and enterprises with executives who are not core members. The enterprise intelligent development can influence executive compensation through the two channels of enterprise governance structure optimization and productivity effect, as well as the spatial spillover effect of intelligent technology. The enterprise intelligent development has narrowed the compensation gap between executives and ordinary employees, but widened the compensation gap between executives with different education background. The above-mentioned conclusions provide theoretical basis and policy suggestions for China to make better use of intelligence to achieve high-quality economic development and comprehensively promote the great rejuvenation of China with Chinese modernization in the new era.

Industry & Trade

Green Innovation Effect of China's Comprehensive Reform of Service Sector

LIU Sheng, XU Rong-xin, CHEN Xiu-ying

2023, 0(9):  111-122. 

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In the context of service-oriented transformation, the service factor input is animportant driving force to drive the green low-carbon transformation, and the green innovation effect triggered by the comprehensive reform of its departments deserves attention. The existing literature highlights the impact of industrial sector deregulation on the improvement of the efficiency of service sector, but ignores the green spillover effects brought forward by the institutional innovation of the service sector. Thus, this paper applies the methods of DID and DDD to explore the green innovation effect of the pilot policy for the service sector comprehensive reform. The findings show that the comprehensive reform of service sector can significantly improve the green innovation performance of firms in the pilot areas, thatthe green innovation effect of the service sector comprehensive reform is more significant in the state-owned enterprises, the enterprises with stronger market power, the enterprises in the non-heavy pollution industry, and the enterprises with lower foreign investment openness and lower digitalization degree in the service sector, and that the comprehensive reform of the service industry can improve the green innovation performance of enterprises by optimizing the intermediate input structure of the service industry, reducing operation and management costs, strengthening the correlation strength between upstream and downstream industries, and establishing a green service system.From the view of high-quality development, it is necessary to unleash the green dividends of service industry reform with a distinctive and differentiated development approach, keep a foothold on the combination between local reality and reform and innovation, explore step by step the experiences and models that can be replicated and promoted, thereby achieving a deep integration of service industry governance modernization and the environmental, social and responsibility demands of enterprises.

Application of Industrial Robots, Factor Mobility and China's Exports

GU Jun-yi, ZHAO Chun-ming, LI Zhen

2023, 0(9):  123-134. 

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How to cultivate new competitive advantages in foreign trade and get rid of the dilemma of low or negative growth in export trade is the focus and difficult point of China's foreign trade work at present. Based on the data of the International Robotics Federation and data of Chinese customs from 2006 to 2016, this paper explores the impact of industrial robot applications on the scale and structure of China's exports. The findings show that industrial robot applications have significantly promoted urban export growth, and this promotion effect is mainly manifested in the quantity margin, while the price and expansion margins do not change significantly. Robots indirectly act on urban export growth by attracting the inflow of high-skilled labor and promoting the transfer of capital across regions. Robot applications promote the export growth of China's processing trade and general trade, and by significantly increasing the high-tech products export share to achieve technology structure optimization of export products; but its effect on export market structure adjustment still needs to be stimulated. Considering the inter-city correlation of production factors, robot applications have inhibited export expansion in the neighboring citieswhilepromoting the local urban export growth, so there is a siphon effect; however, in general, robot applications have significantly boosted China's export growth. The findings imply that the robot dividend can replace the demographic dividend and create new growth points for China's export trade, but the government should pay more attention to the coordinated development of regional foreign trade when introducing relevant policies, and beware of robot applications further widening the regional gap in the development of foreign trade.

Modern Accounting

Registration System of Science and Technology Innovation Board, R&D“Window Dressing” and IPO Pricing Efficiency

ZUO Xuan, ZHANG Wei-dong

2023, 0(9):  135-146. 

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The new shares issuing on the Science and Technology Innovation Board shall be registered, which emphasizes the review of research and development of the companies to be listed. In order to be succeeded in the listing, the scientific and creative enterprises will try to“window dress”their R&D in the situation of information asymmetry. Taking the listed companies on the Science and Technology Innovation Board from 2019 to 2021 as research samples, this paper conducts an empirical analysis of whether the listed companies on the science and technology innovation board would “window dress”their R&D in order to be listed and the impact of the“window dressing”on IPO pricing efficiency. The findings show that the listed companies on the science and technology innovation board have R&D“window dressing”behavior. Further research shows that R&D“window dressing”has raised the passing rate of listing applications and reduced the efficiency of IPO pricing. Therefore, under the background of the comprehensive registration system reform, it is necessary to strengthen the check of the research and development indicators and put an end to R&D“window dressing”behavior, especially to raise the auditing standards of science and technology innovation attribute of the enterprises which apply for listing on the science and technology board, so as to improve the R&D level of listed companies, and promote the high-quality development of enterprises.

Public Attention and Readability of Annual Report: A Quasi Natural Experiment Based on Hurun Rich List

ZHANG Jian, SHI Ce, ZHANG Yin-ge, YUAN An-ni

2023, 0(9):  147-156. 

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At present, the content of annual reports of not a few listed companies is hard to understand with lower readability, which is difficult to be understood by the investors, so that the investors are difficult to make investment decisions by taking advantage of the annual report information. This article selects the enterprises, whoseactual controllers appear on Hurun Chinese Rich List for the first time, as the research samples, and explores the impact of the entrepreneurs, who have been on the the list of the“Hurun Report”, on the annual report readability of the companies actually controlled by these entrepreneurs. The findings show that entrepreneurs appealing on the“Hurun Rich List”will decrease the annual report readability of the companies actually controlled by these entrepreneurs. Further mechanism analysis reveals that after the entrepreneur appears on the“Hurun Rich List”, the public's attention to the companyactually controlled by him will be increased, which will reduce the readability of the company's annual report. The heterogeneity analysis shows that the reduction in the readability of the annual reports of companies controlled by entrepreneurs who appear on the Hurun Rich List is more significant in enterprises with poor internal control quality, higher degree of earnings management, small shareholding ratio of institutional investors, and lower audit quality. Therefore, the investors should improve their ability to filter and identify company information, the listed companies should reduce the asymmetry of internal and external information, and the market regulators should further improve the information disclosure system of listed companies.