No.4.Jul. 15，2017

HIGHLIGHTS

JOURNAL OF ZHONGNAN UNIVERSITY OF ECONOMICS AND LAW

No.4.Jul. 15，2017

HIGHLIGHTS

Abstract:In order to solve the "inventory" problem and ensure the transformation of grain processing, the grain processing subsidies policy has been implemented in many areas. Based on the data of enterprise in the industrial enterprises database from 1998 to 2007, this paper examines the impact of government subsidies on the capital allocation of grain processing enterprises under the distortion of rice price. The results show that, the negative effect of government subsidies on capital allocation is significant when the degree of rice price distortion is weak, vice versa. After considering the endogeneity, the result is still robust. Further results show that with the increase of the degree of rice price distortion, the preferential subsidy of medium and non-state enterprises is more conducive to the overall level of capital allocation of the industry.

Key words:Government Subsidy; Distortion of Relative Price; Food Processing Enterprises; Capital Allocation; Grain Processing Industry; Distortion of Rice Price

Rethink and Redefinition of the Demographic Dividend in the Process of Economic Development

ZHAO Yu ZHONG Shuiying REN Jingru

·3·

(SchoolofEconomicsandManagement,WuhanUniversity,Wuhan430072,China)

Classical literature and academic mainstream mostly observe and study the demographic dividend from the view of influences of population age structure on economic growth. The classical concept of demographic dividend is not enough to reflect the positive influences of population transition on economic growth. The change of population age structure generates economic growth dividend, which is inseparable with the improving quality of population in the process. Hence, the demographic dividend should be defined as followed: A sort of population condition which is caused by the combined effects of the change of population age structure and the improvement of population quality after the onset of the demographic transition and beneficial to economic growth. This paper uses production function to construct a new indicator for the demographic dividend. On this basis, it analyzes the influences of population change on economic growth in China in the future. The conclusion is that the improvement of population quality can make population change benefit economic growth in the long run. Therefore, improving population quality is the future development direction of China’s population and keeping the age structure which is beneficial to economic growth by adjusting fertility policies is not the proper policy.

Demographic Change; The First Demographic Dividend; The Second Demographic Dividend; Population Age Structure; Population Quality; Economic Growth

Are the State-owned Enterprises Really Restrain Independent Innovation?

LI Yong

·20·

(SchoolofEconomicandManagement,NorthwestUniversity,Xi'an710127,China)

Abstract:This paper builds up a theoretical model to investigate the innovation efficiency of state-owned enterprises(SOE) and China's innovation dilemma of local enterprises, the result finds that threshold characteristics are existed in SOE’s innovation activities. What’s more, when the profit of innovation activity is low, the proportion of SOE is positively related to the independent innovation. On the contrary, while the profit of innovation activity is high, the increase of the proportion of SOE brings the innovation level down. Besides, an empirical analysis confirms our theoretical results by using the provincial data from 1997 to 2013. This conclusion indicates that when the externality are strong, the SOE would show compensation effect towards the independent innovation. If the capital utilization efficiency of state-owned enterprises is not improved, carrying out the financial marketization reform blindly will not help alleviate the dilemma of independent innovation.

Key words:State-owned Enterprises; Independent Innovation; Compensation Effect; Crowding-out Effect

Study on Performance of Conglomerate Merger from the Perspective of Industry Life Cycle and Enterprise Life Cycle

LIU Yan

·46·

(SchoolofEconomic&Management,SouthChinaNormalUniversity,Guangzhou510006,China)

Abstract:Based on the Shenzhen and Shanghai listed companies which have occurred conglomerate merge as the objects, the paper attempts to discuss the performance difference of conglomerate merge under different combinations of industry life cycle stages and enterprise life cycle stages. Firstly, the paper divides the sample companies’ industry life cycle into three stages: growing stage, mature stage and declining stage, and also divides enterprise life cycle into the same three stages, and then divides the sample companies into 9 kinds of combination according to their different industry and enterprise life cycles. Secondly, using independent sample T test and multiple linear regression analysis method, the paper examines the performance difference of conglomerate mergers of 9 kinds of combination. Lastly, the result is that the combination of that both industries and enterprises are in declining stage has the best performance of conglomerate merger, and it's not obviously suitable for conglomerate merge for growing enterprises whenever industry is in any kinds of life cycle stage.

Key words:Industry Life Cycle; Enterprise Life Cycle; Conglomerate Merger; M&A Performance; M&A; Financial Strategy; Cash Flow

Managerial Ability and Internal Control Quality：Inhibition or Promotion?

SHEN Lie GUO Yangsheng

·58·

(SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:Based on the theory of Upper Echelons, this paper studies the influence of managerial ability on the quality of enterprise internal control, and examines the moderating effects of property right nature and product market competition environment on the relationship between the two parties. The results show that the management ability improves the quality of internal control.Moreover, in the private enterprises and the fierce competition environment of product market, the influence of managerial ability on the internal control is more significant. Furthermore, the influence of managerial ability on five factors of internal control is investigated, and it is found that managerial ability has the greatest influence on the control environment factor, and has no significant influence on risk assessment and information communication factors.

Key words:Managerial Ability; Internal Control; Nature of Property Right; Product Market Competition Environment; Internal Governance; Reputation Mechanism

Public Investment, Human Capital and Resident Income: Evidence from Provincial Panel Data

WANG Shenghua

·68·

(ChineseAcademyofFiscalSciences,Beijing100142,China)

Abstract:This paper puts the public investment, human capital and resident income in the same analysis framework, and uses provincial panel data from 1990 to 2014 for empirical research. The estimated results of fixed effect model confirm the hypothesis that the public investment and human capital promote the growth of the residents’ income, and local governments’ investment on regional human capital strengthens the role of human capital on the growth of residents’ income. On the whole, non-economy public investment such as education and healthcare investment is more advantageous to improve the residents’ income than economy public investment. The empirical results show that the impact of public investment on the resident income has regional differences, the non-economic public investment in the eastern region has a greater impact on the resident income, while the economic public investment is more obvious in the central and western regions. Hence, while ensuring the effective supply of infrastructure, the public sector should focus on improving human capital related to people's livelihood, such as education, health care and so on. What’s more, they should also take full account of the regional differences of public investment effect to improve the effectiveness and pertinence of fiscal regional regulation.

Key words:Public Investment; Human Capital; Income Differentials; Livelihood Investment; Regional Difference

"Municipal County" and Mitigation of Fiscal Predicament of County Governments: Based on the Panel Data of Sichuan Province from 2005 to 2015

JIA Jin LI Xuefeng

·75·

(ChineseWesternEconomicResearchCenter,SouthwesternUniversityofFinanceandEconomics,Chengdu610000,China)

Abstract:"Municipal County" can directly contribute to improving the county financial self-sufficiency through decentralization. This reform can also promote the county's economic development and generate indirect effect. Based on the panel data of Sichuan Province from 2005 to 2015, this paper explores the effects of the "Municipal County" reform. However, the results suggest that the reform neither promote financial predicament, nor lay the foundation by promoting the development of county economy. From dynamic point of view, the effect of reform in 2013 marked a turning point. Further analysis finds that the success of "Municipal County" is dependent on supporting reform policies and measures.

Key words:Municipal County; Decentralization of Authority; Mitigation of Fiscal Predicament; Fiscal Self-Supporting; Difference-in-Difference Estimation

Government Subsidy, Distortion of Relative Price and the Capital Allocation of Food Processing Enterprises：A Case Study of Grain Processing Industry

WU Shunchen1XU Xuegao2

·119·

(1.ChinaInstituteforRuralStudies,TsinghuaUniversity,Beijing100084,China;2.InstituteofAgricultural
EconomicsandDevelopment,JiangsuAcademyofAgriculturalSciences,Nanjing210014 ,China)