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10 October 2017, Volume 59 Issue 10 Previous Issue    Next Issue

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The Indirect Paradigm of Confucian Entrepreneurship Studies: A Perspective from the Relationship between Dao and Practice BAI Zong-rang 2017, 59(10): 1-9.  Abstract ( 68 )   Confucianism has long been regarded to be impracticable. The study of Confucian ethics and wealth depends on understanding of the relationship between Dao and Practice, on which academic studies could be summarized in three paradigms: inapplicability, direct application and indirect application, among which only the indirect paradigm serves as right interpretation. In the Pre-Qin Dynasty, Confucians deemed themselves as scholars, and seldom practiced business. Confucius attached importance to wealth and justified the pursuit of it. However, most of the theories about economics and finance were from the perspective of national government in original Confucianism. The relationship between Dao and Practice is not positively logical, but as a detoured, dynamic, experiential, and temporary link. The business transactions recorded in the “Biography of Businesspeople” of Shiji turned out to be indirect application of Confucian wisdom. The indirect paradigm retains the immeasurably fruitful meaning in the interaction of Confucian theory and Practice, it is a more holistic view and authentically applicable in advanced commercial decision-makings. References | Related Articles | Metrics

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Payment Methods and Consumer Purchase Decision:An Analysis of Mental Accounting Perspective WANG Qi1， XI Dan2, ZHANG Xiao-hang1 2017, 59(10): 10-15.  Abstract ( 87 )   Integral programs exerted great influence on customer purchase behavior with constant improvement and wide application of customer reward program. According to the income sources of mental accounting, varied attributes of income sources in mental accounting often generated different purchasing intentions and behaviors. This paper took attention as the mediating variable and explored how payment methods involving integral and cash influence customer purchase intentions. Furthermore, it analyzed the internal mechanism of relationship between payment methods and purchase intention and studied moderating effects of commodity property on payment methods. The results demonstrated that purchase intention when consumers used integral to pay was higher than that with cash; attention mediated the interactive effect of payment methods; commodity attribute moderated the effect of payment methods on purchase intention; when commodity attribute was hedonic, payment methods had a significant difference on purchase intention, but when the commodity attribute was utilitarian, there was no significant difference. References | Related Articles | Metrics

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The Impact of Customer Relationship Transaction on Capital Structure: The Moderating Role of Relationship Specific Investment ZHAO Xiu-yun1, ZHOU Chen1,2 2017, 59(10): 16-22.  Abstract ( 83 )   In China, a quantity of enterprises tend to proceed relationship transaction with major customers, which contributes to the increasingly important impact of relationship transaction on enterprises′ financial decisions. This paper analyses the impact of customer relationship transaction on capital structure based on the data from A- share manufacturing listed companies in 2008-2015, finding that capital structure positively related to the customer relationship transaction, relationship specific investment with capital commitment function has a moderating role and has different effects on the relationship between customer relationship transaction and capital structure; in the case of relationship specific investment in low degree, customer relationship transaction has more significant effect on the capital structure; in the samples of private enterprises which are highly competitive, the moderating effect of the relationship specific investment is more remarkable. China′s manufacturing enterprises must pay attention to the potential impact of the concentration degree of non-financial stakeholders such as main customers on enterprise management when making capital structure decisions, and attach importance to the relationship specific investment with innovation and R&D as main content, to enhance mutual trust and cooperation among enterprises, and deepen supply chain relationship management and broaden marketing channels through modern technology platform. References | Related Articles | Metrics

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A Study of Third Party Payment Effect on Inflation under the New Perspective of Finance LI Shu-jin, CHEN Ying 2017, 59(10): 23-30.  Abstract ( 82 )   This paper introduces third party payment into the framework of the formation mechanism of inflation and theoretically discusses how third party payment affects inflation through changing money supply and speed of currency circulation under the new perspective of internet finance by using of the bootstrap method and 2008- 2016 quarter data of China. Empirical findings show that the inflation is significantly affected by utilization rate of internet payment and the event of central bank regulating internet payment; the speed of currency circulation is positively related to inflation, while money multiplier could be ignored; output gap, asset prices, and monetary policy could be ignored. The above conclusions show that we can′t ignore the impact of third party payment on inflation in the context of growing internet finance. References | Related Articles | Metrics

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Expectation Performance Feedback，Industry Competitive Pressure and Enterprise M&A: An Empirical Study based on Shanghai and Shenzhen A - share Listed Companies HUANG Chang-fu, LI Sang-di 2017, 59(10): 31-38.  Abstract ( 68 )   M&A is a strategic choice for enterprises to realize competitive advantage by using external resources. This paper takes the acquirers in A-share listed companies in Shanghai and Shenzhen as research samples from 2011 to 2015, and investigates the relationship between the expected performance feedback, the competitive pressure of the industry and M&A behavior, and the moderating effect of competitive pressure on the relationship between expected performance feedback and mergers and acquisitions. The results show that when the expected performance feedback is negative, with the widening of expected performance gap, the M&A intention and scale will rise first and then fall, showing inverted U- shaped relationship; industry competition pressure promotes the M&A positively, when the expected performance of the organization is not realized, the competitive pressure of the industry has a significantly positive effect on the inverted U-shaped relationship between expected performance gap and M&A behavior.The above conclusions deepen the understanding of expected performance feedback, indirectly investigate the division mechanism between enterprise executives and shareholders or board of directors in the process of enterprise M&A decision-making under the expectation performance gap, and provide a new perspective for influence factors of M&A behavior, which has theoretical significance and practical reference value for managers and shareholders how to close the expected performance gap and prevent M&A risk though rational M&A decision-making. References | Related Articles | Metrics

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Research on Optimization of China ′s Export Industry Structure based on Pollution Evasion： A Framework for CGE Analysis of Trade and Environmental Policy Coordination LAN Tian，HAI Peng 2017, 59(10): 39-47.  Abstract ( 62 )   This paper constructs a CGE model of trade and environment policy to simulate and analyze the impacts of environmental tax, R&D subsidy and two policy coordination on China′s export industry structure, economic development and pollution emission. The simulation results show that a single collection of environmental taxes or R&D subsidies can optimize the export industry structure, but has its own disadvantages. If the two policies coordinate, they can achieve maximum pollution reduction while promoting economic growth, and the optimization of the export industry structure is higher than that of a single policy. Therefore, China should consider combining environmental taxes and R&D subsidy policy to optimize export industry structure, which can avoid the problem of environmental pollution as far as possible and promote sustainable economic development while developing foreign trade. References | Related Articles | Metrics

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IPO Overpricing, Investor Sentiment and Market Response: An Empirical Study based on China′s A-Share Market XIE Han-Chang 2017, 59(10): 48-55.  Abstract ( 66 )   Frequent IPO overpricing makes investor sentiment and investment strategy become the focus of behavioral finance theory in China′s capital market. This paper selects 654 A-share listed companies from 2010 to 2012 in Shanghai and Shenzhen market as samples, analyzes the proportional change in shareholders number and the shareholding proportion of institutional investors before and after IPO, and examines investors′ reaction to IPO overpricing. The study finds that IPO overpricing makes medium and small investors do excessive reaction because of representativeness bias, loss aversion and regret aversion, and institutional investors also overreact due to overconfidence from the advantages of information superiority and technical experience; the investors′ overreaction makes withdraw shareholders more than entry shareholders so that the shares with IPO overpricing face a new round of a major reshuffle of shareholders under the condition that their shareholders number and proportion of institutional investors become less. References | Related Articles | Metrics

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Research on the Index Allocation Strategy of Construction Land between Local Governments based on Evolutionary Game Theory: A Differential Strategy of Urbanization Development CAO Fei 2017, 59(10): 56-63.  Abstract ( 70 )   The traditional index allocation control model of construction land in China has greatly hindered urbanization development. In this study, an evolutionary game model was used to analyze the index allocation method and strategy of construction land between local governments with different resources. The analysis results show: differentiated economical evaluation and farmland protection policies implemented by central and superior local government are the key factors that directly influence the corporatism implementation of local governments, and the “carrot” policy based on the implementation of the “stick” policy are more effective on promoting the cooperation between local governments on the efficient and intensive land use problem; the increase and optimization of the marketization degree of land expropriation compensation and capital/labor force allocation are beneficial to the improvement of land utilization efficiency and the implementation of efficient and intensive land use by local governments with different resources; the traditional race-to-the-bottom development pattern does no longer meet the requirements of new-style urbanization and land use efficiency improvement. In order to better advance the differential strategy of urbanization development, it is necessary to establish a differential assessment method for local governments, enhance the marketization level of key factors, and introduce supporting policies for household registration and transfer payment. References | Related Articles | Metrics

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The Specialization of Trade Circulation Industry and Transformation of Economic Growth Pattern in China′s Areas along “Belt and Road”：An Empirical Study based on Moderating Effect of Urbanization 2017, 59(10): 64-71.  Abstract ( 60 )   As a bridge between production and consumption, trade circulation industry plays an extremely important role in the development of regional economy and transformation of economic growth pattern,and urbanization can strengthen and coordinate their relationship. Applying Spatial Durbin Model and choosing the urbanization level as a regulation factor, the paper analyzes the influence of the trade circulation industry specialization on the transformation of economic growth pattern by using domestic sector of “Belt and Road” spatial panel data from 2005 to 2015. The results show that: the trade circulation industry specialization level in areas along“Belt and Road” is not balanced, and transformation of economic growth pattern exists a clear spatial correlation effect under the role of related factors; the positive local effects and spatial spillover effects of the specialization of trade circulation industry on the intensification of economic growth in “Belt” areas are obviously higher than in “Road” areas; the urbanization has a significant moderating role, especially its leverage effect and demonstration effect are more significant both inside and outside of the province in “Belt” regions. Therefore, we should improve trade specialization degree and the rate of city and play its positive role on the transformation and upgrading of economic structure in “Belt and Road” strategic process. References | Related Articles | Metrics

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The Effects of Cultural Barrier Index on Chinese Service Trade Export Flow： Based on Service Trade Export Database of 16 China′s Service Trade Partners WANG Li-fei, JIN Yu-jue 2017, 59(10): 72-77.  Abstract ( 94 )   Cultural differences between countries affect service trade greatly. Based on the Inglehart′s Culture Dimension Theory and adopting the WTI cultural barrier measurement, this study measures the degree of cultural barrier of China with sixteen trade partners and the impact of cultural barrier on China′s service trade export flow by the use of extended gravity model. The study found that the higher the cultural barrier index is, the less the service trade flows. The cultural barriers index decreasing by 10% could lead to the service trade flow increase by 2.23%. China is in the critical transitional period from sizable to powerful service trading country. Therefore, the enhancement of cultural exchange and removal of cultural barriers between China and its trade partners will help China build the image of powerful service trade country and promote the development of Chinese politics, economy and diplomacy. References | Related Articles | Metrics

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Directors′ and Officers′ Liability Insurance and Firm Performance: An Empirical Test based on the Data of Chinese Listed Companies LING Shi-xian, BAI Rui-feng 2017, 59(10): 78-86.  Abstract ( 71 )   Directors′ and officers′ liability (D&O) insurance is regarded as a new external governance mechanism, which has been paid more attention in developed countries. How its governance function and the impact on the performance of the company need to be studied in China. Based on the data of Chinese listed companies from 2009 to 2015, the relationships among D&O, market performance and financial performance were tested by the methods of pooled least squares, PSM and Heckman two stages method. The results showed that D&O had a significant positive influence on market performance, but had a significant negative influence on financial performance, which meant that incentive effect and opportunism behavior coexisted. The results provided an empirical basis for listed companies to deeply understand D&O and to strengthen the construction of modern enterprise system. Therefore, we should introduce liability insurance into companies and improve the construction of governance system to improve the governance function of D&O. References | Related Articles | Metrics

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Managerial Power, Future Performance and Effectiveness of Compensation Contract〖WT〗 LIU Kun-peng1,2,ZHANG Xian-zhi1,LI Qing-hua2 2017, 59(10): 87-95.  Abstract ( 81 )   From the perspective of future performance, taking the listed firms in China in 2009-2015 as samples, this paper tests the effects of managerial power on the effectiveness of compensation contract based on pay-for-performance elasticity. The results show that managerial power raises pay-for-performance elasticity and lowers payment irrelevant to performance, while the final effect of managerial power is to raise management compensation; if future results seem better managerial power will enhance the effects on compensation contract, which means that managerial power′s effects on compensation contract are for self-interest and compensation justification. Testing in sub-samples, this paper finds that local state-owned firms show higher such self-interested behavior than private firms, while there is no related evidence in central state-owned firms. The above understanding of the factors affecting the effectiveness of the remuneration contract, has implication for enterprises, especially state-owned enterprises to develop more reasonable and effective incentive contract incentive. References | Related Articles | Metrics

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Is Industry Change Quick Success or Foresight? An Analysis based on “Loss Aversion” Hypothesis of Prospect Theory and Manager′s Self-interest MEI Bo1,2 2017, 59(10): 96-105.  Abstract ( 63 )   The paper explains the motivation and economic consequences of industry change behavior based on “loss aversion” hypothesis of prospect theory and manager′s self-interest motivation. Research shows short-term performance of industry changes is obvious, but the long-term performance is not obvious, indicating a certain degree of success motivation exists at present in industry change of our country, and this not only is related to the scientific nature of enterprise management decisions, but also is related to the nature of the company and management incentives: short-term performance is better after the industry change, but R&D investment and long-term performance effect is not obvious; compared to non-state-owned enterprise, short-term performance effect of state-owned enterprise changes is more obvious, and its long-term performance is not obvious. Short-term performance effect of non-central control state-owned enterprise is more obvious, and its long-term performance is not obvious; compared to higher degree of market area, short-term performance of lower market area is more obvious, and long-term performance effect is not obvious. Further analysis finds: short-term performance effect of industry change is more obvious before the Share Merger Reform; industry change improves short-term performance in lower-paid manager group, but long-term performance which means long value after the industry change is better in higher-paid manager group. References | Related Articles | Metrics

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Intrapreneurship in the Context of Supply-Side Structural Reforms: Mode Selection and Path Design LI Xian-jun 2017, 59(10): 107-115.  Abstract ( 63 )   Intrapreneurship is a good choice for SMEs to get rid of the development dilemma and to realize innovation and development. Based on different perspectives, SMEs can choose different intrapreneurship modes, which exhibited distinct patterns with large enterprises. SMEs can choose the combination of chaos innovation, iterative innovation, micro innovation, and reflective innovation in different stages of development; as the most active factor in the intrapreneurship process, the owner of small and medium-sized business should play a leading role and promote the organization of entrepreneurial activities to realize the change from innovation based on personal characteristics to the innovation based on organizational characteristics;SMEs also can rapidly response to the impact of external shocks such as technology shocks, which helps SMEs to leapfrog big firms. According to “Objective - Behavior - Results” basic logic, there are three basis intrapreneurship paths for SMEs, such as target evolution path, behavior evolution path and evolution path, which can drive SMEs systems innovation, behavioral innovation, and corporate entrepreneurship. References | Related Articles | Metrics

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Analyst Attention, Corporate Growth and Violations of Listed Company XIAO Qi1, SHEN Hua-yu2 2017, 59(10): 116-125.  Abstract ( 53 )   As an external governance mechanism of capital market, what′s the role of analyst attention? Using data of Chinese listed companies in 2003-2014, this paper empirically analyzes the relationship between analyst attention and violations of company, and how corporate growth influences the aforementioned relationship. This study finds analyst attention can reduce violations of company, and corporate growth can weaken this effect; after distinguishing audit quality, it is found that analyst attention does not significantly affect violations in the environment of high audit quality, but it significantly reduced violations in the environment of low audit quality, indicating that analyst attention can play a role of alternative mechanism to independent audit; when governance level of institutional investor is higher or in the environment that CEO and chairman are not the same person, the restriction effect of analyst attention on violations is more significant. References | Related Articles | Metrics

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Can Upgrading of Industrial Structure Narrow Urban-Rural Income Gap? An Analysis of the Threshold Effect of Human Capital GONG Xin-shu, WANG Man, PAN Ming-ming 2017, 59(10): 139-144.  Abstract ( 92 )   Based on the inter-provincial panel data of China from 2000 to 2014, this paper discusses the impact of upgrading of industrial structure on the urban-rural income gap by using the panel threshold model, and analyzes the regulatory role of human capital in its two dimensions. The study finds that, as a whole, the upgrading of industrial structure narrows the urban-rural income gap, but its influence has spatial differentiation, and human capital plays an important regulatory role;the result of sub-regional study shows that the eastern region has a negative “U”-shaped of non-linear effect; the central region does not exist the statistical sense of the threshold effect; the western region of human capital stock can significantly inhibit the expansion effect of upgrading of industrial structure on urban- rural income gap, but human capital structure has exacerbated this effect. Further analysis shows that only Beijing, Liaoning and Shanghai are in the optimal range of human capital, thus improving the human capital stock and optimizing the human capital structure is still an important focus for the vast majority of provinces to promote the upgrading of industrial structure to narrow urban-rural income gap. References | Related Articles | Metrics

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Environmental Regulation and Enterprise′s Optimal Decisions:A Study based on Mixed Oligopoly Model SUN Wen-yuan, YANG Qin 2017, 59(10): 145-152.  Abstract ( 84 )   In the mixed oligopoly market including state-owned enterprises and private enterprises,the optimal production and pollution control R&D investment decisions made by state-owned enterprises and private enterprises are analyzed when facing the environmental regulation in the form of environmental tax policy. The results show that when enterprises only focus on production decision-making, with no pollution control R&D investment decisions, both state-owned enterprises and private enterprises are to reduce the total production in the face of environmental tax policy, leading to private enterprises are at a disadvantage in the market, but the strengthening of environmental regulation will cut the production advantage of state-owned enterprises in the market; when enterprises make production decision as well as pollution control R&D investment decision, the environmental regulation policy of the government will suppress private enterprises′ production, while pollution control R&D investment increases firstly and then decreases, showing the inverted “U”-shaped trend, but the state-owned enterprises not only increase the output of products, but also strengthen pollution control R&D investment, showing environmental regulation is more conducive to the production of state-owned enterprises, and increasing its investment in pollution control R&D; when state-owned and private enterprises are facing environmental regulation, whether to carry out pollution control R&D investment or not is affected not only by the strength of environmental regulation, but also by the degree of market freedom. Government should grasp the intensity of environmental regulation according to the heterogeneity of enterprises in different industries, and implement the supporting policies to promote enterprises to make investment decisions of taking pollution control into consideration. References | Related Articles | Metrics

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The Periodical Characteristics of Technological Innovation Efficiency in High-tech Industries and Its Dynamic Evolution XIAO Li-ping1,2, JIANG Chen-lu2 2017, 59(10): 153-161.  Abstract ( 45 )   Innovation activities process has different characteristics in different stages. Based on the value chain theory, this paper established a three-phase DEA model of technological innovation under variable returns to scale to measure the innovation efficiency in three phases and test their influence factors using the data of high-tech industries in 30 provinces during 1998-2010. Research shows: technological innovation efficiency in China′s high-tech industries is obviously unbalanced among different regions and roughly presents a multi-V-shaped dynamic trend; innovation efficiency of three phases are mostly the types of low fundamental innovation, low applicable innovation and low profitable innovation; the development of information technology and independent innovation of enterprises have significantly positive influence on the innovation efficiency in all three phases, while the support of finance and government as well as the scale of enterprises have different effects in different phases. Carefully studying technological innovation activities is conducive to truly fitting up the R & D innovation process of high-tech industries, reasonably calculating the efficiency of each phase, and finding the real inefficient parts of each link. References | Related Articles | Metrics

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Government Intervention, Environmental Regulation and Green Total Factor Productivity: The Empirical Evidence from China′s 30 Provinces, Municipalities and Autonomous Regions ZHANG Jian-hua，LI Xian-zhi 2017, 59(10): 162-170.  Abstract ( 85 )   Based on the non-radial and non-angle SBM direction distance function and Malmquist-Luenberger productivity index, this paper calculates the Green Total Factor Productivity(GTFP) indicators of 30 provinces, municipalities and autonomous regions in China with industrial waste water and gas emissions as unexpected outputs included in the calculation process, and analyzes the effects of government intervention, environment regulation and their interaction effect on GTFP. Research shows the improvement of environmental regulation level can effectively promote the promotion of GTFP, but this positive promotion will be weakened once it exceeds a critical value, confirming the Strong Potter Hypothesis. In the region where government intervention is strong, the government incline to force firms to cut down pollution by administrative means, which results in misallocation of resources and is harmful to the improvement of firms′ GTFP; in the regions where government intervention is inferior, however, the local government tends to regulate by more progressive ways, which is conducive to firms′ green technology innovation and will have positive effect on GTFP. Therefore, in order to realize the coordinated development of economy and environment protection, government should properly design environmental regulations and reasonably grasp the degree of intervention in the market. References | Related Articles | Metrics

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Industrial Structure Change and Economic Effect Analysis in Northeast China XIE Hai1,GUO Fu2,KANG Yu-hong2 2017, 59(10): 171-176.  Abstract ( 58 )   The industrial structure change is the basic feature of regional economic development, and it is also an important aspect of the internal determining power of regional economic development. Based on this, this paper analyzes the influence of the rationalization and evolution of industrial structure and high-level process on long-term economic growth and short-term economic fluctuation in Northeast China. Research shows that the rationalization and high degree of industrial structure in Northeast China can promote economic growth, and high-grade structure has greater impact on economic growth, but it may lead to greater volatility in the economy. Therefore，in formulating industrial policy, we should balance between internal and external relations and industrial relevance, balance between economic growth and volatility risk, and construct a reasonable development model. References | Related Articles | Metrics

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Population Aging, FDI and Financial Development: A Threshold Model Analysis based on Interprovincial Panel Data in China CHEN Ji-yong1, JIANG Yan-ping2, WANG Bao-shuang2 2017, 59(10): 177-185.  Abstract ( 73 )   The demographic dividend is waning with the deepening of population aging in China; especially in the case of uneven regional financial development, the relationship between population aging and FDI inflows becomes more subtle. Based on the mechanism that aging population and financial development affected FDI inflows, the paper uses panel threshold model and the interprovincial panel data from 2000 to 2014 in China to analyze the relationship between population aging and FDI inflows under the influence of financial development. The results show that population aging has significantly inhibitory effect on FDI inflows, which is different due to financial development and regions, but the aging population is nonlinearly negatively related to FDI inflows. Therefore, we should timely adjust population development strategy, improve labor productivity and deepen financial market reform in order to deal with China′s population aging and attract more FDI inflows. References | Related Articles | Metrics

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The Effects of Global Value Chain Embeddedness on Wage Growth in China′s Industry WANG Yu-yan, WANG Ling, ZHAN Pian-pian 2017, 59(10): 186-192.  Abstract ( 82 )   The paper uses panel data including 23 industries from 2003 to 2015 to describe the basic trend of wage growth, measure the degree embedding in GVC in China′s industry and empirically test the effect of GVC on wage growth. Evidences show that real wages are on the rise heterogeneously in China′s industry, and the overall wage gap is gradually narrowing between different industries; because of capture and lock from developed countries, the global value chain embeddedness obviously reduces the wage levels and widens wage gap between the industries in China′s industry; there are nonlinear effects of global value chain embeddedness on wage levels and wage gap between the industries as a result of the existence of breakthrough leap effect. Besides, the raise of R&D can enhance the total wages and widen the wage gap between the industries to some extent;the deepening of capital and enhancement of real output can not only enhance the wage levels of the industry, but also narrow the wage gap between the industries. These innovative results are propitious to reacquaint the popular viewpoint that global value chain embeddedness only promote or reduce wage levels in China, and provide disruptive enlightenment to the reform of China′s labor market in the context of the gradual loss of labor advantage. References | Related Articles | Metrics