Table of Content

16 December 2019, Volume 39 Issue 12

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DETERMINANTS OF RESIDENTIAL ENERGY CONSUMPTION: A URBANRURAL COMPARISON

WEI Chu,SHEN Ziyue

2019, 39(12):  4-16. 

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From 2002 to 2016, with more than 291 million rural population being transformed as urban residence, the residential energy consumption increase 190% during this period. Accurately identifying and examining the major driving forces behind this quick growth of energy demand is essential to understand the evolution of energy demand pattern. Different from existing literature, the present study first clarifies the concept of residential energy consumption by covering both building and transportation energy consumption. More importantly, it introduces two new variables in the decomposition model, namely the wealth effect which represents the change of durable goods and the intensity effect which describes the energy intensity of durable goods. The Logarithmic Mean Divisia Index (LMDI) approach is applied with the national data during 2002 to 2012. Our results show that the wealth effect and energy intensity effect are major engines to drive the residential energy growth. Moreover, our findings offer evidence against the general argument that “urbanization will increase residential consumption”.

THE EFFECTIVENESS OF GOVERNMENT R&D FUNDING IN PROMOTING ENTERPRISE INNOVATION: HYPOTHESIS AND TEST OF HETEROGENEITY OF INCENTIVE EFFECT

ZHENG Jianghuai,ZHANG Yuchang

2019, 39(12):  17-34. 

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There has been a controversy that whether government R&D expenditure can promote R&D innovation and how to play the role of government more effectively in the process of innovation. Based on theoretical analysis, the paper puts forward the effectiveness of government R&D funding in promoting enterprise innovation and the heterogeneity of incentive effect. Based on the data of industrial enterprises' scientific and technological activities this paper examines the effect of the Chinese government R&D funding on the R&D innovation activities of the enterprises. On the whole, the government R&D funding will promote the enterprise's own R&D expenditure, and it will also improve the level of output of the patent and the new product. There are heterogeneities of enterprises in the incentive effect of government funding, the greater the enterprise scale, the higher human capital level and the higher labor efficiency, the greater the effect of the government R&D funding, and the R&D output of the nonstateowned enterprises is higher than that of the stateowned enterprises. In addition, the output of scientific and technological activities is more dependent on the contribution of R&D personnel. When the government subsidize the R&D activities of enterprises, it should make targeted subsidies policy according to the specific micro characteristics of the enterprises.

RESEARCH ON THE CALCULATION METHOD OF CASH BALANCE TARGET IN TREASURY CASH MANAGEMENT REFORM

LI Chunyang1,XU Chuanping2

2019, 39(12):  35-44. 

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The reform of treasury cash management is an important part of the construction of modern treasury system in China. The main task of deepening the reform is to establish the management system of the target of the cash balance in the treasury account. The key step is to determine the reasonable scale of the cash balance in the treasury account using scientific methods. In this paper, we analyse the Baumol model and MillerOrr model which are most commonly used currently, and propose using the Value at Risk (VaR) model in financial risk management to calculate the target of the cash balance according to practical situation. We use the net outflow data of Chinas central treasury in 20122017 to calculate the target of the cash balance in the central treasury account，and find that the number should be 120 billion yuan. At last，we put forward some policy suggestions for establishing the management system of the target of the cash balance in the treasury account.

IS POLITICAL CONNECTION ALWAYS BENEFICIAL FOR FIRM PERFORMANCE——The Roles of Firm Life Cycle Stage and Industry Environment

GUO Hai1,WANG Chao1,FANG Weijia2

2019, 39(12):  45-58. 

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How does political connection impact firm performance? This is a hot issue in the management field. This study contributes to existing literature in three ways. First, it examines the relationship between political connection and firm performance in different firm life cycle stages; Second, it investigates the combined moderating effects of firm life cycle stage and industrial environment; Third, it develops and utilizes a new scale of political connection by using the datamining technology. Empirical results show that political connection is good for firms in the growth stage, but bad for those in the maturity stage. Further, competitive intensity weakens the impacts of political connection on firm performance in both the growth and the maturity stages, while structural uncertainty weakens the negative effect of political connection on firm performance in the maturity stage.

GOVERNMENT SUBSIDIES, PROPERTY RIGHTS AND PRIVATE PLACEMENT

XU Hui1,ZHOU Xiaohua2

2019, 39(12):  59-77. 

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The intervention effect of government subsidy on capital market is a hot topic that scholars urgently need to solve. Based on government subsidies, this paper

investigates the pricing efficiency of private placement and the economic logic behind private placement proceeds from the primary and secondary markets respectively. The stochastic frontier analysis method is used to analyse the Ashare listed companies in Shanghai and Shenzhen from 2007 to 2017 that received government subsidies and implemented private placement. The empirical results show as follows: (1) The issue of directional issuance price premium phenomenon, secondary offerings listed after the premium phenomenon also exists, government subsidies contributed to the extent of the directional issuance price than its intrinsic value, resulting in reduced pricing efficiency, and this phenomenon in stateowned enterprises is more serious. (2) The more serious the pricing bubble is, the higher the revenue is. At the same time the government subsidies for the purchase benefits will have a positive impact, and this phenomenon is more prominent in the stateowned enterprises. Furthermore, the path test results show that the government subsidy is mainly dependent on earnings management, independent innovation and the growth of individual stocks. The results suggest that government subsidies can be dissimilated as hidden tools for manipulating share prices, distorting the incentives for government intervention and making it less effective than it was intended. The research conclusion provides a new perspective for solving the attribution problem of private placement income and a new method for reasonably evaluating the microgovernance effect caused by government subsidy policy.

ANTICORRUPTION, POLITICAL CONNECTIONS AND TECHNOLOGICAL INNOVATION——Empirical Analysis Based on Enterprise Data of GEM in 2010—2015

WANG Ling,ZHOU Lihong,QI Xiaofeng

2019, 39(12):  78-92. 

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This paper uses the data of the GEM companies from 2010 to 2015 to study the mechanism of political relevance to corporate technological innovation. At the same time, it empirically examines the mechanism of anticorruption impact on political linkages and technological innovation. The study found that political connections have a positive effect on the technological innovation of hightech enterprises. For political affiliates, anticorruption will have a suppression effect on its technological innovation in the short term. Based on the above analysis results, this paper believes that it is necessary to increase anticorruption efforts. At the same time, For the high and new technology enterprises which have a high motivation to innovate but would have a serious impact from anticorruption, we need to establish corresponding supporting policies to avoid the shortterm economic fluctuation risk caused by such enterprises.

CAN INFLATION TARGETING AND EXCHANGE RATE TARGETING NOT COEXIST

HU Xiaowen,ZHOU Duanming

2019, 39(12):  93-110. 

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Based on the risk premium channel of exchange rate transmission, Chinas interest rate regulation inflation and foreign exchange reserve hedging intervention rate are included in the new Keynesian policy model, and a dualobjective and dualtool policy analysis framework is constructed. Compare the economic mechanism and effect of the inflation target and the exchange rate target under the Taylor rule and the dualobjective dualtool rule. The simulation shows as follows: (1) Under the dualtarget and dualtool policy framework, the inflation target and the exchange rate target can coexist. At this time, the exchange rate risk premium to peg the exchange rate does not affect inflation; while the singletool policy cannot coexist with the two goals, at this time, the domestic The rate of return on the assets pegs the exchange rate will stimulate residents consumption behaviour to cause inflation. (2) Under the impact of international capital, the dualobjective and dualtool policy can ensure economic stability while fixing the exchange rate; and when the terms of trade deteriorate, choose the fully floating exchange rate. The system is optimal. The central banks policy loss analysis further validates the above conclusions. (3) With the deepening of financial market reform, the effectiveness of the stable exchange rate of foreign exchange reserves will decline, and the writeoff cost will increase substantially. Under the opening of the capital account, the dualobjective and dualtool policy remains the preferred policy for the central bank to resist external capital shocks. However, after the exchange rate is marketized, there is basically no difference between the inflation target system and the dualtarget dualtool policy. The conclusion of the conclusion is that in the face of international capital, necessary exchange rate controls are needed; but in the face

of trade shocks, exchange rate flexibility can be moderately increased to reduce the impact of shocks on output and inflation.