CONTENTS

Gains and Losses on Asset Sales and Trade Credit Financing of A-share Listed Companies

SUNJieLIMinghui(3)

Has the Corporate Charitable Donations been Affected by Contagion Effect of Negative Events

YUANZemingWANGPeilin(17)

On Peer Effects of Tax Avoidance: Evidence from Director Networks

WANGYing(28)

Network Position of Independent Directors and Firms′ Trade Credit Financing: Based on the Perspective of Degree Centrality and Structural Hole

ZHANGYong(40)

The Dynamic Evolution and Spatial Difference of Basic Medical and Health Service Supply

CHENZhiyongHANYunge(53)

Will Foreign Residence Rights Aggravate Financial Asset Allocation of Real Enterprises?

ZHAOYanfen(65)

Does QFII Improve the Effectiveness of China′s Capital Market?

LIUBeibeiZHAOLei(79)

Does the Similarity of Income Distribution Affect Export Dynamics?

LONGShiguoQIANXuefeng(94)

Will Farmland Fragmentation Reduce Land Rental?

HONGWeijieCHENJianghua(103)

Structural Competition in the Banking Industry and Corporate Recovery after Crisis

ZHANGXinyueTIEYing(111)

On Harmonious Path of Economic Growth and Ecological Quality under Government Regulation: From the Perspective of Redesign of China's Ecological Compensation System

HUJuanLIZhenHAOYing(126)

A Review of Ma Zhemin's Economic Thought in the Period of the Republic of China

WANGWengui(138)

The Development of Economics in Central and Southern China in the Period of the Republic of China: Based on the Investigation of the Economic Thought of the Professor Group in Zhongnan Institute of Finance and Economics

DENGYang(147)

JOURNALOFZHONGNANUNIVERSITY

OFECONOMICSANDLAW

No.2.Mar. 15，2021

HIGHLIGHTS

GainsandLossesonAssetSalesandTradeCreditFinancingofA-shareListedCompanies

SUN Jie LI Minghui

·3·

(YangtzeRiverDeltaEconomicsandSocialDevelopmentResearchCenterofNanjingUniversity/BusinessSchool,NanjingUniversity,Nanjing,Jiangsu210093,China)

Abstract:Based on the data of non-financial A-share companies listed in Shanghai and Shenzhen from 2009 to 2018 to explore the relationship of listed companies′ gains and losses on asset sales and trade credit financing. The results show that there is a significant negative correlation between the magnitude of abnormal gains and losses on asset sales (the absolute value of abnormal gains and losses on asset sales) and trade credit financing. The above relationship exists in both the abnormal asset sale gain sample and the abnormal asset sale loss sample. Besides, the negative relationship is not caused by the fact that gains on asset sales reduce companies′ demands for trade credit financing. The results indicate that gains and losses on asset sales of client firms is a factor that suppliers consider when making trade credit granting decisions. Excessive gains on asset sales and excessive losses on asset sales both give rise to suppliers′ negative reactions. In addition, superior short-term solvency and stronger market competitive position can alleviate the relationship between the magnitude of abnormal gains and losses on asset sales and trade credit financing. Further study shows that corporate performance and earnings volatility play partial intermediary roles in the relationship between the magnitude of abnormal gains and losses on asset sales and trade credit financing. The paper expands the research on the economic consequences of asset sale transactions in the context of China′s institutional background and the effect of company characteristics on trade credit financing.

Keywords:Gains and Losses on Asset Sales; Trade Credit Financing; Short-Term Solvency; Market Competitive Position

HastheCorporateCharitableDonationsbeenAffectedbyContagionEffectofNegativeEvents

YUAN Zeming WANG Peilin

·17·

(SchoolofAccounting,TianjinUniversityofFinanceandEconomics,Tianjin300222,China)

Abstract:This paper takes China′s A-share listed companies from 2011 to 2018 as samples, focuses on the strategic role of charitable donations, and empirically tests the impact of negative events on the level of donations of listed companies in the industry. The results show that: the listed companies affected by the negative events will significantly improve their donation level. The effectiveness of their donation strategies is further investigated from four dimensions of creditors, suppliers, consumers and investors. It is found that the charitable donation of the affected enterprises helps to reduce the financing cost of enterprises and improve the competitiveness of products market and enterprise value. Finally, based on the heterogeneity of enterprise property rights, industry characteristics and institutional environment, this result shows that the effectiveness of donation strategies of affected enterprises is different, and donation strategies are more effective in non-state owned enterprises, non social responsibility sensitive industries and regions with poor institutional environment. This paper not only enriches the study on the coping strategies of contagion effect and the strategic motivation of charitable donation, but also provides some guidance for the stakeholders in the market to carefully identify the strategic donation behavior of listed companies.

Keywords:Contagion Effect; Charitable Donations; Responsible Attribution; Stakeholder Perception; Negative Events

OnPeerEffectsofTaxAvoidance:EvidencefromDirectorNetworks

WANG Ying

·28·

(SchoolofFinance,ShandongUniversityofFinanceandEconomics,Jinan250014,China)

Abstract:From the perspective of social embeddedness theory, this paper explains why there exist universality and convergence of tax avoidance using the Chinese listed firms during 2008 to 2018, that is, analyzes the problem of tax interaction among different firms. We find that, when emdeded in board network, a firm′s tax avoidance behavior will be significantly impacted by the tax avoidance behavior of its peers, that is, there exist peer effects among interlocked firms, which shows a characteristic of differential mode of the association, displaying in three aspects, namely industry, place of incorporation and ultimate controlling owners. Further, this paper finds that peer effects of tax avoidance cause damage to corporate value, improving corporate governance contributing to reducing the damage to some degree, the reseason of which is the principal-agent problem has been exacerbated. The simplest definition of peer effects caused by board network is, a firm should treat board network cautiously, especially when learning or imitating interlocked firms' tax avoidance experience.

Keywords:Tax Avoidance; Peer Effects; Board Network; Corporate Value; Agency Problem

WillForeignResidenceRightsAggravateFinancialAssetAllocationofRealEnterprises?

ZHAO Yanfen

·65·

(1.SchoolofE-commerceandLogisticsManagement,HenanUniversityofEconomicsandLaw，Zhengzhou450046,China)

Abstract:With China's economic entering a new normal, the trend of "financialization" of real enterprises is becoming apparent, and its negative impact has attracted more and more attention. Based on this circumstance, this paper studies the ultimate controlling person′s foreign residence rights′ impacts on financialization. The results show that the enterprises whose ultimate controlling persons have foreign residence rights will have higher financialization. The mechanism tests show that agency conflict, short-sighted behavior and overconfidence are the ways by which foreign residence rights increase the financial assets. The analysis of the governance environments shows that the poorer internal and external governance environments will strengthen the positive influence between the foreign residence rights and the financial assets, namely the more significant under the following poorer governance circumstances: the higher-institution-holding-proportion shares, the lower-degree-marketization, non-big-four auditors, lower quality internal control, lower proportion independence board and equity-balance. From the study we can saftly draw the conclusion that regulators should notice that the ultimate controllers′ foreign residence rights will aggravate the financialization of enterprises; investors should consider the negative impact of enterprises with foreign residence rights while making investing decision; good internal and external governance environments can alleviate the financialization of enterprises.

Keywords:Foreign Residence Rights; Financial Asset Allocation; Private Listed Companies; Internal and External Governance Environment

DoesQFIIImprovetheEffectivenessofChina′sCapitalMarket?

LIU Beibei1ZHAO Lei2

·79·

(1.SchoolofEconomics/ResearchInstituteofFinance,HenanUniversity,KaifengHenan475004,China; 2.SchoolofBusiness,ZhengzhouUniversityofAeronautics,ZhengzhouHenan450046,China)

Abstract:Based on a set data of China′s A-share listed firms from 2006 to 2019, and using the stock price informativeness to measure the effectiveness of the capital market, this paper investigates the impact of qualified foreign institutional investors (QFII) on stock price informativeness. The result shows that QFII holdings significantly increase stock price informativeness, and QFII holdings significantly increase stock price informativeness of the short-term (measured by the company′s earnings in the next period). However, the impact of the long-term stock price informativeness (measured by the future two-year and three-year company income) is weakened; the effects of QFII on stock price informativeness are more obvious in state-owned enterprises and regions with a weak legal environment. The results suggest that QFII can substitute ownership and a legal environment for enhancing stock price informativeness. Further, after controlling possible endogeneity problems with using the instrumental variable method, a Difference-in-Difference approach, and placebo test based on propensity score matching, and using alternative measures of QFII and stock price informativeness, different sample observation periods, a series of robustness tests, QFII shareholdings still significantly increase stock price informativeness. Finally, QFII can increase stock price informativeness through channels such as the monitoring played by active institutional investors and improve the quality of accounting information. The result shows that QFII is helpful to improve the quality of corporate information disclosure and plays an important role in supervision and governance, which provides the new empirical evidence for QFII and the effectiveness of China′s capital market, and also provides the new policy reference for regulatory authorities.

Keywords:Effectiveness of Capital Market; Stock Price Informativeness; Active Shareholding; Accounting Information Quality; QFII

DoestheSimilarityofIncomeDistributionAffectExportDynamics?

LONG Shiguo QIAN Xuefeng

·94·

(SchoolofBusinessAdministration,ZhongnanUniversityofEconomicsandLaw,WuHan430073,China)

Abstract:Under the background of increasing trade protectionism and anti-globalization trend, actively coordinating domestic market demand and international market demand will help to gradually form a new development pattern of "domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement", it also can stabilize export. This paper examines the degree of demand overlap in domestic and international markets from the perspective of the similarity of income distribution between two countries, and uses the export dynamic database and the world income inequality database from 1997 to 2014, and uses the gravity model to examine the impact of the similarity of income distribution on the exit rate and survival rate of export firm. The empirical results shows: exporting to countries with similar income distribution reduces the exit rate and improves the survival rate of firm, and the export of manufacturing firm is more affected by the similarity of income distribution than other industries, essential consumer goods are more affected by the similarity of income distribution than luxury consumer goods. The results of this paper confirm that the similarity of income distribution does have a significant impact on export dynamics, on the one hand, it provides a focus for how to accurately match domestic market demand with international market demand, on the other hand, it also provides decision-making guidance for firm export behavior, which can reduce export risk more significantly.

Keywords:The Similarity of Income Distribution; Overlap Demand; Export Dynamics; The Exit Rate of Export Firms; The Survival Rate of Exports Firms