Table of Content

20 July 2012, Volume 32 Issue 7

Previous Issue    Next Issue

FINANCIAL ASSETS, FAIR VALUE ACCOUNTING AND
CEO'S OVERCONFIDENCE

XU Jing-Chang-1, ZENG Xue-Yun-2

2012, 31(7):  5-16. 

Asbtract ( )   PDF (10662KB) ( )  

Related Articles | Metrics

Using a pool sample of 2004—2009, the paper analyzed the determinants of the financial assets holding by listed companies in China. This paper discovered that both the fair value measurement and the CEO overconfidence were all the determinants in increasingsize of the financial assets.Furthermore, under the fair value measurement, both the governmentcontrolled listed companies and the higher proportion controlling shareholders all had significantly increased size of the financial assets. The findings explained the relation about the accounting concepts to financial risks.

OILPRICESHOCKS, MONET
ARYPOLICYADJUSTMENT AND OUTPUTVOLATILITY——Empirical Evidence from China

TANG Yun-Shu, JIAO Jian-Ling

2012, 31(7):  17-27. 

Asbtract ( )   PDF (9721KB) ( )  

Related Articles | Metrics

Based on the macroeconomic monthly data in 2001—2010 in China，using the SVAR model, the paper analyzed the reaction difference of the central bank's monetary policy between including and excluding responses to oil interference, and the impact of oil price fluctuations on the output. Empirical evidence showed that, after excluding responses of monetary policy to oil prices fluctuation interference, the shortterm negative impact on output by oil prices fluctuation reflected through the impulse response function disappeared. The variance decomposition results showed that oil price shocks and monetary policy account for 5.716% and 32.480% respectively in explaining output volatility.Comparing to the data where the interference had not been ruled out, it decreased 2.569% and 4.560% respectively.It indicated that the economic recession brought by the oil price shocks mainly due to the tightening monetary policy responses to oil price shocks.Facing the shortterm impact of oil prices, CPI did not increase with the rising of producer price index and the output also had no obvious decrease. But in the long term,due to the changes of relative prices, the rising of oil prices would affect the level of CPI and monetary policies thereby had a significant negative impact on output.

WHITHER THE ECONOMICS
——Reflections on Economics since the Financial Crisis

LI Li-Li, SHEN Zi-Xin

2012, 31(7):  28-37. 

Asbtract ( )   PDF (7010KB) ( )  

Related Articles | Metrics

Since the outbreak of global financial crisis in 2008, the economic circles had been reflecting on economics continuously. The validity of macroeconomic theories and models as well as“the efficient market hypothesis”had become the focus of the debate.There was a significant divergence of the validity of fiscal policy and the setting of inflation target on economic policy.There had been continuous disputes on the relation between mathematics and economics as well as the method of economic modeling in methodology. However, the future development direction of economics had been showed in the reflection. Theoretically some financial and more realistic factors should be included in economic theories and models,and the models of dealing with these factors are to be gradually diversified. A set of theoretical framework should be urgently developed to provide a basis for fiscal policy and a wider range of monetary policy. Monetary policy would return to the tradition of diversified tools. Respecting method, diversified technical tools in a more extensive sense beyond mathematics would play a positive role and models should become more realistic and complex. Besides the external impact of crisis, the redirection of economics would possibly need corresponding transformation of internal institutional incentive structure in the subject.

DOES THERE EXIST THRESHOLD EFFECTS
OF INFLATION ON ECONOMIC GROWTH IN CHINA——Empirical Analysis on Dynamic Panel Smooth Transition Model

WU Ji-Lin-1, ZHANG Er-Hua-2

2012, 31(7):  38-48. 

Asbtract ( )   PDF (9162KB) ( )  

Related Articles | Metrics

By applied the dynamic panel smooth transition model, this paper found the nonlinear threshold effects of inflation on economic growth in China. The values of threshold increased and the inflation effects on growth decreased from the eastern, to the middle and to the western part of China.When inflation kept at are lative low level, moderate inflation had positive effects on economic growth. As while as inflation increased, the inflation of the same year still had positive effects, but the inflation of last year had negative effects.The relationship between inflation and economic growth showed U-shape. Additionally, the sustainability of economic growth was also influenced by inflation, and showed different characteristics in different part of China. Therefore the central bank of China should lower inflation for economic growth, and carry out different monetary policies in different regions.

LITERATURE REVIEW ON THE
MACRO-PRUDENTIAL POLICY ISSUES

ZHONG Zhen

2012, 31(7):  49-55. 

Asbtract ( )   PDF (5777KB) ( )  

Related Articles | Metrics

In the wave of the reflection of the global financial regulation, strengthening the macro-prudential supervision and constructing the framework of the macroprudential and micro-prudential supervision that had become the core content of the reform proposals of the international organizations and national regulations. The paper studied the origin, the evolution and the background of the concept of the macro-prudential supervision. After the literature review of the domestic and international papers, this paper analyzed the three elements of the macroprudential policies, clarified the related concepts and concluded the revelations and recommendations of China's macro-prudential policy.

THE POVERTY LINE: A SURVEY

CHI Zhen-He-1, YANG Yi-Yong-2

2012, 31(7):  56-64. 

Asbtract ( )   PDF (6500KB) ( )  

Related Articles | Metrics

This paper focused on the study of poverty lines to improve the poverty studies in China. This paper studied absolute poverty line, relative poverty line, subjective poverty line and the other poverty lines, and finally concluded that the relative poverty line was a suitable instrument in poverty studies.

RESEARCH ON THE PERFORMANCE EVALUATION
OF GOVERNMENT HEALTH EXPENDITURE:——An Example of Beijing

XU Guang-Jian, WEI Yi-Fang

2012, 31(7):  65-76. 

Asbtract ( )   PDF (10279KB) ( )  

Related Articles | Metrics

The performance evaluation of public expenditure had been becoming an important part of public financial management in many countries or regions. In recent years, with the deepening of the reform of the pharmaceutical and health care systems,government dominative functionwasincreasingly clear and government spending on health was increasing. In this context, the efficiency and effectiveness of government health expenditure required a further exploration and evaluation. This paper established a performance evaluation system and calculated the index weights by the method of fuzzy-AHP. An empirical analysis of a performance evaluation of Beijing government health expenditure was provided and some conclusions were drawn in this paper.

DID SHARE REFORM AFFECT CASH DIVIDEND
POLICY OF CHINESE LISTED FIRMSEvidence from Manufacturing Firms in China's A-share Market

NING Qing-Qing-1, LI Zhong-Yi-1, YANG Bao-2

2012, 31(7):  77-83. 

Asbtract ( )   PDF (6706KB) ( )  

Related Articles | Metrics

By using the data of manufacturing firms before and after the share reform, this paper studied the effect of the share reform on the cash dividend policy of listed firms in China. The empirical results showed a significantly difference in cash dividend policy before and after the share reform. The share reform of stock market had great influence on both the percentage and volume of cash dividend in the long term.Therefore, the share reform and full circulation of shares would improve the cash dividend policy and protect the investors better.

ENVIRONMENTAL INVESTMENT AND SO2 DISCHARGE——Evidence from LMDI Decomposition

ZHANG Ping-Dan, ZHU Song, ZHU Yan-Chun

2012, 31(7):  84-94. 

Asbtract ( )   PDF (9004KB) ( )  

Related Articles | Metrics

This paper applied the method of LMDI to decompose the SO2 emission density into three effects according to the production process, including energy consumption density effect, energy consumption structure effect and pollution treatment effect. This paper found that the decreasing of SO2 emission density mainly relied on the upgrade of pollution treatment technology.The second one was energy consumption density effect. The energy consumption structure was not improved from 1998 to 2009.This paper examined the relationship between environmental investment and three effects using provincial data from 2005 to 2009 based on the simultaneous equations model. Empirical results showed that the environmental investment influenced SO2 discharge positively.

DYNAMIC MONITORING ON CHINA'S REGIONAL ECONOMIC SECURITY

GU Hai-Bing, ZHANG An-Jun

2012, 31(7):  95-103. 

Asbtract ( )   PDF (7359KB) ( )  

Related Articles | Metrics

This paper defined the content of China's regional economic security, through dividing indicators of national economic security according to different regions, monitoring and evaluating the important regions which affected the national economic security overall and dynamically. This paper found that:（1）the degree of the national economic security varied between low and moderate degree of insecurity during 2005—2009. 85% of external risks which affected the national economic security were concentrated in seven provinces of east China. Economic risks showed highly concentrated ,which brought negative effects on spreading risks and dissolved economic insecurity, which showed a low downward trend during recent five years.（2）42% of abilities to prevent the national economic security came from the seven provinces of east China,which showed low concentration and slowly rising trend during recent years.（3）The total influence degree on the national economic security in the seven provinces was 68% during 2005—2009.Economic risks showed moderate concentration and the trend of gradual decline during recent years.（4）The influence degree of Guangdong province ranked first（19%）, Jiangsu province ranked second（13%），Shanghai city ranked third（11%）,Zhejiang province ranked fourth（8%）,Shandong province ranked fifth（7%）,Beijing city and Liaoning province both rank sixth（5%）.

EMPIRICAL STUDY ON THE COMPENSATION TO
EXPROPRIATED RURAL RESIDENTIAL PROPERTIES IN CHINA

WANG Lan-Lan-1, WANG Hui-2, TAO Ran-3

2012, 31(7):  104-112. 

Asbtract ( )   PDF (7104KB) ( )  

Related Articles | Metrics

This paper applied a nationwide survey data to examine the factors which affect the compensation to expropriated rural residential properties. Empirical results showed that the building area, land area, total population in rural household, and distance to the nearest city played significant roles in the compensation. However, the relatively high compensation in Yanjiao area indicated that the most important factor was the market mechanism implemented during the expropriation process, which provided the direction of institutional reform for land property rights system in future.