Table of Content

16 April 2018, Volume 38 Issue 4

Previous Issue    Next Issue

SYSTEMATIC RESTRICTIONS AND STRUCTURAL CONTRADICTIONS FOR CONSTRUCTING MANUFACTURING POWER IN CHINA

LI Jinhua

2018, 38(4):  5-19. 

Asbtract ( )   PDF (15337KB) ( )  

Related Articles | Metrics

There are systematic restrictions and structural contradictions in constructing manufacturing power in ChinaThe systematic restriction is embodied in the lack of advanced manufacturing technologies and the top manufacturing brandsThe structural contradiction is reflected in the imbalance between the demand for the economic growth and the distribution of manufacturing resourcesThe systematic constraints and structural contradictions have persistence，block and strong rigidityIn order to build a powerful manufacturing country，great efforts should be made to crack down on systematic constraints and structural contradictionsWe should rely on the construction of the institutions and reshape the sense of worth of the whole nation；to make breakthroughs in key areas through the optimizations and the advantages；and to cultivate champion enterprises and build small and mediumsized enterprises clustersThis will shorten the time for catching up with the manufacturing powers and speed up the process of building a manufacturing powerful country

ECOLOGICAL DEFICIT TAX: GREEN DEVELOPMENT AND TAX SYSTEM REFORM#br#

XIONG Zhenxing

2018, 38(4):  20-31. 

Asbtract ( )   PDF (11617KB) ( )  

Related Articles | Metrics

This paper quantifies the natural ecological space occupation and assesses the value of the corresponding ecological carrier，by proposed environmental tax plan based on the value compensation of ecological deficit，also called Ecological Deficit TaxIn order to transfer the tax burden from labor and capital factors to natural resources and pollution，this paper analyzes the policy effect of environmental tax with reduction of capital and labor income taxResults show as followsThe tax plan helps to reduce the ecological deficit and increase employment，supports the double dividend hypothesisTotal output declines，but the intermediate inputs decreases greater，and nominal GDP maintains growthReal GDP decreases in only reduced corporate income tax scheme，while reducing personal income tax can control its decline，and personal and corporate income tax reduction is less than the revenue of environment taxReducing personal income tax performance is better in maintaining economic growth，while reducing corporate income tax effect is better in reducing the ecological deficitIt is suggested that the environmental tax is levied on the basis of the improvement of ecological footprint accounting，and reduces the income tax on labor and capital，and promotes the green development of economic growth from resource consumption to labor and capital investment


MSME FINANCE ENGAGEMENTS BY CHINESE TRADITIONAL BANKS: SOCIAL RESPONSIBILITY OR BUSINESS MOTIVATION

LI Yan,SHI Jiahong

2018, 38(4):  32-48. 

Asbtract ( )   PDF (16885KB) ( )  

Related Articles | Metrics

Traditional banks are usually considered as being unsuitable for MSME Finance，but a growing number of Chinese traditional commercial banks are engaged in MSME Finance in recent yearsThis paper explores factors related to MSME finance engagement by Chinese banking financial institutions by empirical research using handcollected panel data from 2007 to 2014Defining engagement as loan provision and service delivery，this paper finds that，apart from policy of CBRC，corporate social responsibility and business interest are both significantly related to engagement intensity to different extentMoreover，ownership type，economic and culture environment also impact on the engagement intensifies of banksThis paper enriches empirical research on MSME Finance，and has a practical implication for banking regulation department to properly allocate financial resources

IS THERE ANY DIFFERENCE BETWEEN EFFECTS OF MARGIN TRADING AND SHORT SELLING ON THE MARKET STABILITY

LV Dayong,WU Wenfeng

2018, 38(4):  49-62. 

Asbtract ( )   PDF (12517KB) ( )  

Related Articles | Metrics

This paper focuses on the effect of margintrading and shortselling on underlying stock price stability，and takes the volatility of margintrading and shortselling into considerationWe find that the introduction of margintrading and shortselling decreases upvolatility of the underlying stock price while increases downvolatility，and both margin trading and short selling have shown the similar effectMoreover，margin trading decreases the overall volatility of pilotstock price，but short selling has no significant impact on the overall volatilityIn addition，the volatility of margin trading does exacerbate stock price volatility while the volatility of short selling helps stabilize underlying stock priceBased on this paper，we suggest regulation of margin trading should be “smooth” in order to avoid excessive stock price instability caused by the volatility of margin trading

THE LOCAL GOVERNMENT POLLUTION GOVERNANCE UNDER THE PERSPECTIVE OF NETWORK GAME ANALYSIS 

YANG Jidong1,LIU Yuancheng2,YANG Rui1

2018, 38(4):  63-74. 

Asbtract ( )   PDF (11989KB) ( )  

Related Articles | Metrics

Proceeding from a game model of network，this paper regards all the thirtyone provincial governments as a network decided by geographical factors and it also studies the behaviors of local governments and environmental pollution treatmentWe find that there is a strong peer effect of neighborhood in the respect of environmental pollution treatment and strategically complementary behaviors among local governmentsTherefore，the policy suggestion of this paper is that as the policymaker，central government should recognize the key province from the network of provincial local governments and guarantee the leading role of key province in promoting the investment level of its neighboring provinces


EARNINGS MANAGEMENT，SEASONED EQUITY OFFERINGS AND CORPORATE PERFORMANCE

LUO Qi,GAO Xuefeng,WU Jingtong

2018, 38(4):  75-85. 

Asbtract ( )   PDF (10150KB) ( )  

Related Articles | Metrics

In the case of highly concentrated ownership，there are internal links among earnings management of the controlling shareholder，the window of opportunity and the use efficiency of the raised funds，which all have joint effects on the corporate performance after SEOUsing the Ashare listed companies in Shanghai and Shenzhen stock markets refinancing in 2007—2011 as our sample，we investigate why the corporate performance declines after SEO from the perspective of earnings management，timing of financing and misuse of raised fund fromFurther research show that listed firms in the hot market would implement a greater magnitude of earnings management，causing larger mispricing of firms stockConsequently，the decrease of accounting and market performance is more significantWe also find the controlling shareholder is more inclined to implement earnings management and misuse the raised funds in the listed companies with serious agency problems，which will adversely affect the performance after SEO

CAN INCREASING BANK CAPITAL ALLEVIATE THE DIFFICULTY OF SMALL AND MICROSIZED ENTERPRISE FINANCING——Based on the Reform of Small and Microsized Enterprise Loan Lower Risk Weight#br#

LIU Zhonglu

2018, 38(4):  86-97. 

Asbtract ( )   PDF (12379KB) ( )  

Related Articles | Metrics

This paper discusses the possible paths to solve the problem of small and microsized enterprise financing difficulty from the perspective of bank capitalThe new capital regulatory framework requires small and microsized enterprise loan a favorable risk weighting，which can be regarded as a “natural experiment”This paper studies the relationship between the quality of bank capital and the small and microsized enterprise loan and probes into the theory of “small bank advantage” with the DID modelThe empirical analysis yields the following resultsFirst，the policy that small and microsized enterprise loan has lower risk weighting improves the bank lending for small and microsized enterprise significantly，especially for small banksSecond，before the policy implements，higher quality levels of capital banks will squeeze small and microsized loans，and this is particularly in big banksThird，when the policy implements，the higher capital of bank preference to lend to small and microsized enterprise become stronger and also is remarkable in the big banksTo implement favorable risk weighting in small micro enterprise loan，improve the quality of banks capital and build a multilevel bank financial system can relieve the small and microsized enterprise financing problem effectively


PORTFOLIO INVESTMENTS，FINANCIAL MARKET AND SYSTEMIC RISK

GANG Jianhua1,ZHAO Yang1,GAO Xiang2

2018, 38(4):  98-112. 

Asbtract ( )   PDF (14302KB) ( )  

Related Articles | Metrics

This paper starts by defining five factors that are relevant to crossborder portfolio investment towards ChinaDifferent from other studies，this paper examines the effects of capital flows due to portfolio investment up to a conditional second orderWe derive a multifactor pricing formula of the crossborder equity investmentsWe also conducted a measurement of crossborder capital inflow/outflow due to portfolio investments towards Chinas financial marketsWe obtained the dataset of capital flow and finally analyzed their correlations in conditional mean as well as in the dynamic conditional correlationsThus，we generalize the benchmark VAR model by building an augmented model，a VARMGARCHDCC modelIn addition，our evidence reveals that Chinas stock market plays as a stabilizer for short term capital especially after the reformIn summary，this paper suggested that the capital account liberalization must be treated cautiously，because both short term capital flow and exchange rate volatility play essential roles in Chinas systemic risk