.3. 15，2018

HIGHLIGHTS

DoesR&DInvestmentAffectCorporatePayout:ReputationorFinancialFlexibility?

WANG Yihan1,2YANG Hanming1WANG Zhenkun2

·3·

(1.SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China;2.SchoolofAccounting,NanjingUniversityofFinanceandEconomics,Nanjing210023,China)

Abstract:Taking Chinese manufacture listing companies from 2012 to 2016 as samples, this paper examines the relationship between corporate R&D investment and cash dividends based on the reputation hypothesis and financial flexibility hypothesis. The result shows that their relationship is inverse U-shaped, that is, for lower R&D intensity, R&D investment is positively associated with cash payout, and for higher R&D intensity, R&D investment is negatively associated with cash payout. This result is significant in high financing-constraint firms. Furthermore, due to China’s unique semi-mandatory payout policy, this relationship is weakened. These findings are significant for the government regulators to make payout policies.

Keywords:R&D Investment; Payouts; Reputation; Financial Flexibility

NatureofPropertyRight,ManagerialExternalPayGapandFirmRisk-Taking

ZHANG Zhihong ZHU Xiaolin

·14·

(SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:This paper discusses the influence of the managers’ external pay gap on the firm risk-taking, and examines the differences among different property companies. Using the data of A-share listed companies from 2007 to 2015 in China, the study shows that, when managers’ pay is higher than the industry average, the external pay gap can alleviate the risk aversion tendency of managers, and thus improve the firm’s risk-taking level. When managers’ pay is lower than the industry average, the managers are more likely to pursue the risk as to find a way to change the situation. Whether the managers’ pay is higher or lower than the industry average, the positive correlation between the external pay gap and the firm risk-taking only exists in non-state enterprises, and the improvement of risk-taking level can promote the firm’s market value.

Keywords:Managerial Pay; External Pay Gap; Firm Risk-Taking; Property Right

OnInternalControlInformationDisclosureandFirmStockPriceCrashRisk

JIANG Hongyun1WANG Xiongyuan2

·23·

(1.ResearchCenterofModernEnterpriseManagement,GuilinUniversityofScienceandTechnology,Guilin541004,China;2.SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:Only using one year data,Ye et al.(2015)finded that supervise information about internal control could reduce stock price crash risk. This paper uses the internal control data from 2007 to 2015, and examines the relationship between internal control information disclosure and firm stock price crash risk. The results show that, supervise information disclosure about internal control and internal control quality can reduce stock price crash risk, but assessment information disclosure about internal control can increase stock price crash risk. Further analysis shows that, audit quality has the regulation effect, but company size and listing age have not the regulation effect. The research gets the more robust conclusion, so can enrich literature related to stock price crash risk and internal control.

Keywords:Internal Control; Information Disclosure; Stock Price Crash Risk

Analysts′Coverage,NatureofPropertyRightandEarningsManagementMethod

YE Chengang1LIU Meng1,2

·33·

(1.SchoolofInternationalBusiness,UniversityofInternationalBusinessandEconomics,Beijing100029,China;2.InternationalEducationInstitute,ShandongTechnologyandBusinessUniversity,Yantai264005,China)

Abstract:Based on the data of the A-Share listed companies in China between 2010 and 2015, from the perspective of the monitor and pressure, we explore whether analysts′ coverage has an impact on the earnings management and its channel. It is found that the higher analysts′ coverage, the less accrued earnings management, and the more real earnings management behavior. This shows that analysts′ coverage can effectively supervise the accrued earnings management of the company, has prompted managers turn into more concealed real earnings management behavior. Further analysis shows that, due to the different nature of property right, enterprise managers face different political and performance pressure, the inhibitory effect for accrued items is stronger in the non-state-owned enterprises, while the prominent effect for real earnings management behavior is stronger in the state-owned enterprises.

Keywords:Analysts′ Coverage; Nature of Property Right; Accrual Earnings Management; Real Earnings Management

UncoordinatedDevelopmentofVirtualEconomyandRealEconomy,
CapitalInvestmentandSubstitutionEffect

MA Hong1HOU Guisheng1WANG Yuanyue2

·55·

(1．SchoolofEconomicsandBusiness，ShandongUniversityofScienceandTechnology，Qingdao266590，China；2．SchoolofEconomics，OceanUniversityofChina，Qingdao266100，China)

Abstract:According to the special institutional environment in China, this paper examines the effect of uncoordinated development of virtual economy and real economy on capital investment of the enterprises. On the basis of theoretical analysis, this paper takes the data of Listed Companies in China as samples to do empirical research. The results show that: The uncoordinated development of virtual economy and real economy promotes the financial investment of the enterprises, but suppresses the entity investment of the enterprises (fixed assets investment and R & D investment); Under indirect influence of the uncoordinated development of virtual economy and real economy, compared with the complementary effect, the impact of financial investment of the enterprises on the entity investment is more likely to be the substitution effect; Considering the internal and external factors of the enterprises, The result shows that in different properties and in different level of regional financial development, the moderating effect of the uncoordinated development of virtual economy and real economy on the substitution effect of the financial investment of the enterprises is different.

Keywords:Virtual Economy; Real Economy; Capital Investment; Substitution Effect

BubbleMeasurementandSpatialInfectiousEffectofHousingPriceinYangtzeRiverDelta

ZHANG Chao

·73·

(SchooleofFinance，AnhuiUniversityofFinanceandEconomics,Bengbu233030,China)

Abstract:This paper selects panel data from 13 cities in the Yangtze River Delta between 2007 and 2015, and uses the static panel model to measure and study the real estate price bubble. The spatial dynamic panel model of housing price bubble is estimated by GMM estimation method. The results show that the real estate prices in various cities in the Yangtze River Delta have bubbled in different degrees, and the bubble ratio has fluctuated widely in various years; the real estate price bubble in each city has a spatial correlation, and the change in house prices in one city will affect other cities. According to the conclusion, it is proposed to promote the structural reform of the supply side of the real estate industry, establish a long-term mechanism to curb the rise of house prices and prevent the spread of housing prices.

Keywords:Real Estate Price; Yangtze River Delta; Bubble Measure; Spatial Infection Effect

NewProgressintheTheoryandApplicationofGlobalValueChainMeasurement

NI Hongfu

·115·

(InstituteofEconomics,ChineseAcademyofSocialSciences,Beijing100836,China)

Abstract:The ideas and methods of the global value chains have penetrated into other fields of economic research extensively and become new hot spots in the macro-economy, industrial economy and international trade. The measurement theory and application of global value chain have made great strides and can be divided into two methods at the macro level and the micro level: macroscopic measures based on the input-output model approach, and microscopic measurement, using the micro-enterprise survey data and the customs import and export statistics. Based on two clues of macroscopic and microcosmic measurement, this paper reviews the evolution process and the latest progress of measurement theory of global value chain, and analyzes and forecasts the application and progress of these measures in other fields. The convergence and consistency of measures at the macro and micro levels of the global value chain are the future research trends of the global value chain measurement and provide rich research data and tools for the empirical analysis of the global value chain and other fields of application.

Keywords:Global Value Chain; Input-Output Model; Trade in Value Added; Length of Production

DoesServiceTradeLiberalizationPromoteChineseEnterprises’Innovation?

LI Hongliang XIE Jianguo

·127·

(SchoolofEconomics,NanjingUniversity,Nanjing210093,China)

Abstract:This paper firstly analyzes whether a firm decides to produce and innovate under the background of service trade liberalization theoretically, and then constructs the index of service open penetration and innovation intensity using the World Bank data and the China industrial enterprises data from 2001 to 2007, to take an empirical test for the internal relationship between the service trade liberalization and firms’ innovation. The result of Tobit model shows that the liberalization of services trade significantly improves the firms’ innovation intensity. The heterogeneity test finds that trade liberalization of finance, distribution and professional services has an obvious promoting effect on innovation. Furthermore, this paper uses Brazil service open penetration as an instrumental variable to deal with the endogeneity and Heckman two stage estimation methods to conduct robustness test, and the result is still valid. Finally, this paper also finds that services trade liberalization is conducive to the improvement of private and high service usage enterprise’ innovation. Therefore, the government should take measures to promote service trade liberalization deeply, in order to increase the capability of firms’ independent innovation and technology upgrade.

Keywords:Service Trade Liberalization; Service Open Penetration; Innovation Intensity; Enterprise Innovation