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15 November 2020, Issue 06 (209) Previous Issue    Next Issue

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Monetary Equity and RMB Internationalization LUO Cheng, GU Yong-kun 2020 (06):  1-10.  Abstract ( 705 )   PDF (2413KB) ( 1610 )   Based on the exploration of state capital structure,supply hierarchy structure and property right relationship of monetary, this paper designs a theoretical framework for study of currency equity, which is to define currency equity and analyze its structure.By using this theory, we explores the three groups of relationships between currency equity and economic growth, exchange rate and foreign exchange reserve, and inflation. Moreover, we also deeply reveals the mechanism of currency equity among RMB internationalization.On this basis, we further elaborates the new strategy, new path and new method for promoting RMB internationalization with the new thinking of currency equity. References | Related Articles | Metrics

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Productive Services Import, Servitization and Domestic Value Added in Manufacturing Export WANG Hou-shuang, SHENG Xin-yu, ZHAO Lu-nan 2020 (06):  11-19.  Abstract ( 542 )   PDF (1332KB) ( 1256 )   Based on data published by WIOD and its relevant database, this paper studies the effect of import of productive services on export value added of manufacturing and also the character that servitization of manufacturing plays during this process. The study shows a significant positive effect of import of productive services on export value added of manufacturing, and the higher the level of servitization of manufacturing is, the more productive effect of import of productive services will be. Moreover, the smaller the relative gaps between the level of servitization of manufacturing and import of productive services on export is, the more positive and significant the import of productive services will be. Further study shows that under the certain level of servitization, the growth of both quality and quantity are the main drive of this effect. Chinese's government should attach importance to this positive effect, and specified the pivotal role from both servitization of manufacturing and the different origins of import's growth. Moreover, government should improve the effect by three critical channels:to carry forward the strategy of servitization of manufacturing, to coordinate the development of industry and import trade, and to make the adjustment of import of service trade strategy etc. References | Related Articles | Metrics

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Housing Prices and Enterprises' Executive Pay-performance Sensitivity ZHANG Xing-liang, WEN Ri-guang 2020 (06):  20-28.  Abstract ( 541 )   PDF (1334KB) ( 934 )   This paper argues that, in non-real estate businesses, high housing price attracts high investments by firms, which improve firms' performance; however, the performance is difficult to measure executives' effort, and its quality is also poor. According to optimal contract theory, the importance of firms' performance in executive compensation contracts will decline as well, indicating a decrease in executive pay-performance sensitivity. Using the house price data of 35 large- and medium-sized Chinese cities and of listed firms in China's non-real estate industry, this study reveals that high housing price significantly reduces executive pay-performance sensitivity, particularly when the executive compensation contract is effective. The above findings are robust to difference-in-differences (DID) model. The paper is not only an important supplement to the research literature on executive pay-for-performance sensitivity, but more importantly, provides a new perspective to study the impact of house price on enterprises. References | Related Articles | Metrics

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Research on the Relationship between Financing Constraints, Earnings Management and Technology Innovation—Empirical analysis based on manufacturing listed companies SUN Liang-zhu 2020 (06):  29-37.  Abstract ( 556 )   PDF (1332KB) ( 1820 )   This paper selects the empirical data of China's A-share manufacturing listed companies from 2013 to 2018, and uses regression analysis to test the impact of earnings management on the relationship between financing constraints and corporate technological innovation. The results show that listed manufacturing companies in China have significant R&D investment-cash flow sensitivity and companies are facing external financing constraints; Earnings management has a significant positive effect on corporate technological innovation; Financing constraint has a significant mediating effect in the relationship between earnings management and technological innovation; After further analysis of ownership nature and scale factors, it is found that earnings management has a more obvious easing effect on private manufacturing enterprises' R&D financing constraints, and is more conducive to alleviating the financing difficulties faced by small and medium-sized manufacturing enterprises. References | Related Articles | Metrics

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Welfare Effect of IPO Pricing Adjustment HUANG Shun-wu, WANG Chun-ming 2020 (06):  38-46.  Abstract ( 437 )   PDF (1416KB) ( 925 )   Under market-oriented pricing mode, the adjustment of IPO pricing is a common phenomenon. Based on theoretical analysis and the samples of 348 IPO companies with market-oriented pricing from November 1, 2010 to April 27, 2012, this paper examines the impact of IPO pricing adjustment on participant welfare. It is found that the majority of IPO pricing tends to increase, and the welfare effects are as follows. Issuers earn higher financing revenue. Underwriters charge more commissions. Although the earnings are relatively reduced, institutional investors, strategic investors and successful applicants can still get higher welfare increase. Retail investors are the main body of speculation and suffer welfare losses, but the loss is not due to the adjustment of IPO pricing. References | Related Articles | Metrics

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The Impact of Board Cultural Heterogeneity on the Capital Structure of Commercial Banks YAO Lei, MENG Da 2020 (06):  47-56.  Abstract ( 426 )   PDF (1347KB) ( 1164 )   This paper takes A-share listed commercial banks in China from 2006 to 2019 as the research sample, and divides the board culture of commercial banks into six dimensions:individualism, manliness, uncertainty avoidance, power distance, long-term orientation and self indulgence. According to the operating characteristics, development background and data disclosure characteristics of A-share listed commercial banks in China, based on the Hofstede cultural framework, this paper constructs a three-tier model of the role of the board culture of commercial banks in the capital structure of commercial banks, and explores the impact of the board culture of commercial banks on the capital structure. The results show that the cultural heterogeneity of the board of directors has a significant impact on the capital structure of commercial banks. The six cultural dimensions of the board of directors under the Hofstede cultural framework have a significant impact on the capital structure of commercial banks. Individualism and masculinity have a significant negative interaction effect with uncertainty avoidance. References | Related Articles | Metrics

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Inducive Institutions: The Strategic Choice to Solve the Paradox of Development HUANG Wei, TANG Yu-kuan 2020 (06):  57-63.  Abstract ( 527 )   PDF (1133KB) ( 1062 )   2020 is the key year for China to build a well-off society in an all-round way. Leapfrog development has become a hot issue in the field of domestic strategic planning and economic research. Leapfrog development is the process of backward areas catching up with and surpassing the advanced ones. Either we can learn from the experience of advanced areas to catch up with them, or we can follow suit in the space squeezed by the developed areas, and so the developing area faces the development paradox. From the development situation at home and abroad, taking the leap forward development of Guizhou Province as an example, through the inducive institutions, we not only follow the market law, cultivate the market, but also give full play to the superiority of the socialist system. Through a series of measures to induce the market, society and people to actively participate in economic development, the leapfrog development has been realized and the unique way of leapfrog development in Guizhou Province has been possessed. References | Related Articles | Metrics

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The Determinants of Housing Inequality in Urban Households: Hukou, Endowment or Urban Characteristic?—Based on Generalized Ordered Model and Oaxaca-Blinder Decomposition PAN Jing, YANG Yang 2020 (06):  64-74.  Abstract ( 539 )   PDF (1558KB) ( 1048 )   Using the data from China Labor-force Dynamics Survey (CLDS), and based on generalized ordered Logit model, this paper analyzes the influence of Hukou, endowment and urban characteristic on housing inequality empirically. Based on Shapley value decomposition and Oaxaca-Blinder decomposition, we distinguish the share between effort and circumstance causes, and the share between discrimination due to Hukou and endowment. We draw several conclusions. First, Hukou can explain 54.2% share of housing inequality. Second, effort cause acts positive effect on housing level. Third, discrimination effect of Hukou dominates in housing grade inequality, while endowment effect dominates in housing space inequality. The low housing level of migrants is due to inferior circumstance cause, while that of residents with agricultural Hukou is due to inferior effort and circumstance causes. Fourth, because of the domination of living cost effect, housing grade declines as city size and migrant proportion expanse. More urban land supply can enhance housing level. References | Related Articles | Metrics

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Illness Induced Poverty and Comparative Advantage of Cushion Effect ZHU Chao, WANG Rong 2020 (06):  75-86.  Abstract ( 589 )   PDF (2007KB) ( 1073 )   When out-of-pocket medical expenses exceed the threshold, catastrophic medical expenses occur, increasing the probability of poverty due to illness. Based on the data from China Family Panel Studies (CFPS) in 2014, this paper uses the A-F multidimensional poverty measurement method to identify poor families, explore the probability of poverty due to disease. The impact of severe illness increased poverty by 15 percent and reduced total wealth by 6.9 percent. This paper finds that medical insurance, social capital and private lending all have a cushioning effect on poverty caused by illness. The three kinds of cushions have their respective comparative advantages. It is found that medical insurance has significant cushioning effect on low- and middle-income families or high- and medium-risk diseases families. The cushioning effect of social capital only exists in middle- and high-income families or high-risk disease families. T Private lending has a buffer effect only for low-income households. Therefore, families, especially low-income families, should make reasonable use of cushions to improve the ability to resist the impact of serious diseases and reduce the probability of poverty due to diseases. References | Related Articles | Metrics

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Government Quality, Technological Innovation and Green GDP—based on provincial spatial overflow and spatio-temporal difference comparison JIANG Qi, WANG Yue 2020 (06):  87-99.  Abstract ( 616 )   PDF (2111KB) ( 1387 )   By constructing an economic growth model embedded with government quality and scientific and technological innovation factors, and using the balanced panel data of 30 Chinese provinces from 2004 to 2017, the paper empirically tested the impact of government quality and scientific and technological innovation on the development of Green GDP. The results show that China's Green GDP has significant spatial agglomeration and regional differences. Under the influence of economic weight matrix, government efficiency, degree of marketization, degree of equity and degree of corruption in different regions have different influences on Green GDP. Among them, government efficiency and degree of equity can effectively promote the growth of Green GDP in regions with good economic development, but inhibit the growth of Green GDP in relatively backward regions. The degree of marketization promotes Green GDP in most regions. The level of corruption hinders the growth of Green GDP in the region. Scientific and technological innovation plays a positive role in promoting Green GDP in all regions. Therefore, to improve the development level of Green GDP, we not only need to improve the quality of local governments and provide practical policy guidance for Green GDP development, but also need to activate enterprises' ability of scientific and technological innovation to provide strong scientific and technological guarantee for Green GDP development. References | Related Articles | Metrics

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Decision-Making Analysis of Closed-Loop Supply Chain Considering Environmental Protection Efforts of Enterprises under Government Subsidies SUN Jin-ling, YUAN Peng-peng 2020 (06):  100-109.  Abstract ( 459 )   PDF (4217KB) ( 910 )   Under the background of consumers' environmental awareness, in order to analyze the impact of manufacturer's environmental protection efforts on the price, demand, profit and other decisions of node enterprises with or without government subsidies, and further explore the role of subsidies in various optimal decisions. The results show that:environmental protection efforts can increase the sales price of new products and remanufactured products, expand the demand for new products, but have no impact on the demand for remanufactured products; there is an optimal level of environmental protection efforts to maximize the profits of manufacturers and systems without government subsidies; within a certain range, subsidies can curb the increase of sales price of remanufactured products caused by environmental protection efforts, but have no impact on the price of new products, and higher subsidies may not bring higher profits to retailers; consumers' environmental awareness and manufacturers' environmental protection efforts can affect the quantity of product demand and enterprise income through government subsidies. References | Related Articles | Metrics