.5.. 15，2017

HIGHLIGHTS

JOURNALOFZHONGNANUNIVERSITYOFECONOMICSANDLAW

No.5.Sept. 15，2017

HIGHLIGHTS

Abstract:Multinational production is one of the most important features of economic globalization. It also plays a core role in host country’s economic growth. This paper concentrates on factors input and then analyzes the influence of market openness on the decision of multinational production. We construct a theoretical model to interpret the channel from market openness to multinational production. Then, we measure multinational production in China covered eight hundred sectors from 150 countries (regions) by using foreign firm dataset published by State Administration for Industry & Commerce of the People’s Republic of China. We examine the theoretical hypothesis by using market openness index and multinational production data. The empirical result shows that market openness has significant positive impact on multinational production. This result is robust to endogenous test and to exclude other reform influence. We also find market openness has an effect on multinational production and the impact from service sectors’ openness is larger than manufacturing sectors’ openness.

Keywords:Multinational Production; Market Openness; Factor Input; Economic Globalization

CouldtheCompaniesinChinabeAllowedtoChooseFiscalYear-endFreely?
AnAnalysisBasedontheDataof2015Fortune500Companies

CHEN Bo1WU Weijun2

·3·

(1.SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China;
2.PriceWaterhouseCoopersZhongtianAccountingFirm(SpecialGeneralPartnership),Beijing10020,China)

Based on the data of Fortune 500 companies in 2015, we find the great majority of economies in the world permit the companies to choose fiscal year-end freely, except for China and Russia. Legal systems, company size and industry category are the major factors influencing the choice of fiscal year-end. The deregulation of uniform fiscal year is expected to improve the overall accounting and auditing information quality, to help the companies to increase the operational efficiency, especially benefit the SMEs in innovation and entrepreneurship, also to assist the Government to change their functions, to enhance its regulatory effectiveness and to construct the Government aiming at providing public services. We suggest the Government in China to modify the Accounting Law and allow the companies choose their fiscal year-ends from March 31, June 30, September 30 and December 31.

Fiscal Year-end; Accounting Law; Fortune 500 Companies; Information Quality; Audit Quality

StandardsConvergence,ComparabilityandtheOptimisticBiasofManagementEarningsForecast

WAN Peng1CHEN Xiangyu2

·13·

(1.SchoolofAccounting，ZhejiangGongshangUniversity，Hangzhou310018，China;
2.SchoolofAccounting，ZhejiangUniversityofFinanceandEconomics，Hangzhou310018，China)

Abstract:This study examines whether the financial statement comparability affects the optimistic bias of management’s earnings forecast. Based on the listed companies of China A-shares which disclose the annual earnings forecast in 2005-2013, we find that the companies with higher financial statement comparability have less optimistic bias in their management earnings forecasts and the relation between financial statement comparability and the optimism bias of earnings forecast is more significant in poor information environment and lower supervision environment. Further analysis shows that the international convergence of Chinese Accounting Standards has improved the financial statements comparability, which in turn reduced the optimistic bias of management’s earnings forecast. The results show that the international convergence of accounting standards influences the corporate information disclosure behavior by the enhancement of financial statement comparability, which enriches the literatures related to economic consequences of accounting standards’ convergence and the usefulness of accounting information in decision-making.

Keywords:Accounting Standards Convergence; Financial Statement Comparability; Earnings Forecasts; Optimistic Bias

BusinessStrategy,OwnershipandCorporateRisk-taking

ZHANG Xianzhi LIU Zhinan

·23·

(SchoolofAccounting/ChinaInternalControlResearchCenter，DongbeiUniversityof
FinanceandEconomics，Dalian116025，China)

Abstract:Based on the data of A-shares of state-owned listed companies in Shenzhen and Shanghai from 2007 to 2014, this paper examines the impact of the business strategy on the corporate risk-taking. The study finds that business strategy has a significant impact on the risk level. Relating to the companies with the defense strategy, the companies with offensive strategy bear a significantly higher risk level and state-owned ownership imposes a negative regulation effect, but the above effect in the central state-owned enterprises is not obvious. Further research finds that the pyramid structure can effectively inhibit the negative regulation effect of state-owned ownership, but the effect of the central state-owned enterprises is not significant; and when the layers are tedious, the above effect in the pyramid structure of state-owned enterprises is not significant.

Keywords:Business Strategy; Ownership; Risk-taking; Pyramid Structure

PoliticalPromotionandCashHoldinginSOEs:Rent-seekingorEfficiency?

QIAN Aimin ZHANG Chenyu

·42·

(SchoolofBusiness,UniversityofInternationalBusinessandEconomic,Beijing100029,China)

Abstract:This paper examines the effect of political promotion on agency problems in SOEs from the perspective of cash holdings. We find that there is a significantly positive relationship between political promotion and cash holdings, the higher the political promotion, the more the cash holdings, but the lower the value of cash holdings. The finding shows that the cash holdings in political promotion firms reflect the agency problem and managers are more likely to reserve more cash to pursue private benefits. However, the effective internal and external governance mechanisms (such as ownership, low power, product market competition and investor protection) can mitigate agency problem of cash holdings in political promotion firms. Overall, political promotion executives use firms’ resources to pursue private benefits, and exacerbate agency conflicts between shareholders and managers. The finding has an important policy suggestion for the SOE reform and job market building.

Keywords:Political Promotion; Cash Holdings; SOE Reform; Free Cash Flow Hypothesis

TheNonlinearImpactofMiningRightsOverlappingonTotalFactor
ProductivityofCoalExtractiveIndustryinChina

WANG Zhong1JIE Li2ZENG Wei1

·59·

(1.SchoolofPublicManagement,ChinaUniversityofGeosciences,Wuhan430074,China;
2.SchoolofEconomicsandManagement,ChinaUniversityofGeosciences,Wuhan430074,China)

Abstract:This paper analyzes the nonlinear impact of mining rights overlapping on the total factor productivity of coal extractive industry based on the evaluation results of total factor productivity of coal mining in China, using the stochastic frontier production function model between 2004 and 2014. The main results show as follows: First, the total factor productivity of coal extractive industry of China shows a decline after increasing for several years and remarkable regional difference over the period of analysis. Second, there is nonlinear relationship between mining rights overlapping and total factor productivity of coal extractive industry. We employ two important variables to construct threshold model for testing the nonlinear impact between them, the level of coal tax levies and the coal industry agglomeration. Third, capital accumulation and employee assembling of coal industry promoted the total factor productivity, but enterprises concentration blocked the total factor productivity growth. It can be conclude that a diseconomy of scale could be found in the coal extractive industry. Fourth, the decline of energy consumption proportion would not result in the total factor productivity growth in coal extractive industry. China’s energy industry faces great pressure to promote the energy production and consumption revolution.

Keywords:Mining Rights Overlapping; Coal Extractive Industry; Total Factor Productivity; Threshold Effect

China’sMonetaryPolicyRegulationEffectandTime-varyingReactionCharacteristics:
ATestBasedonHousePricesandExchangeRate

DAI Jinping YIN Xiangyi

·88·

(SchoolofEconomics,NankaiUniversity,Tianjin300071,China)

Abstract:Based on the monthly data from July 2005 to March 2017, we use the LT-TVP-VAR model to study the effect and time-varying response of China’s monetary policy on house price and exchange rate. The results show that there is a significant threshold effect among China’s monetary policy and house price and exchange rate. In the period of the slump in the real estate market and the devaluation of the RMB, the effect of monetary policy is more significant in China. Therefore, at the present stage, exchange rate control effect is better than house prices. In addition, China’s monetary policy mainly depends on the quantitative monetary policy tools and the corresponding interest rate policy with the regulation of housing prices and exchange rates, but in recent years the central bank is more cautious to take extensive monetary policy tools, more use of structured policy tools to issue currency on China’s housing prices and the exchange rate for targeted adjustments.

Keywords:Monetary Policy; House Price; RMB Exchange Rate; LT-TVP-VAR Model

MarketOpennessandMultinationalProductioninChina:
TheVerificationBasedonSourceCountryandSector-levelData

HOU Xinyu ZHANG Tiantian SUN Puyang

·105·

(1.SchoolofEconomics,NankaiUniversity,Tianjin30071,China; 2.ColaborativeInnovation
CenterforChinaEconomy,NankaiUniversity,Tianjin30071,China)