No.1.Jan.15，2017

HIGHLIGHTS

JOURNAL OF ZHONGNAN UNIVERSITY OF ECONOMICS AND LAW

No.1.Jan.15，2017

HIGHLIGHTS

Abstract:Based on the matched micro-data of Chinese industrial firms from 2003—2011 and directory of outward foreign direct investment (OFDI) firm released by the Chinese business ministry, using the difference in difference method based on propensity score matching (PSM-DID) to inspect the impact of OFDI on firm’s ROA(return on asset), this paper finds that the OFDI of Chinese firms decreased the firm’s ROA remarkably, whether they invested into one or more countries or areas. When inspecting the impact by different motives of OFDI, this paper finds that the investment of business and production decreased the ROA remarkably，the investment of technology seeking and resource development have no remarkable impact on firm’s ROA. When inspecting by different host countries, this paper finds that the investment to developed countries decreased the ROA remarkably, and the investment to developing countries have no remarkable impact on it. The conclusion demonstrates that the performance of Chinese firm have not been improved if measured by profit compared with TFP, but decreased the profit instead. At last, the lag effect inspection shows that the effect of OFDI on firm’s ROA lasts for 3 and 5 years after the OFDI.

Key words:Outward Foreign Direct Investment; Return on Asset; Propensity Score Matching; Difference in Difference

Allocation Efficiency of Control Rights of Listed Corporations:A Comparative Analysis Based on Pareto Criterion, Hicks Criterion and Stakeholder Criterion

GE Jiegen

·3·

(SchoolofEconomics,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Merger and Acquisition can cause re-allocation of corporation’s control rights in capital market, and the allocation of control rights on the basis of different governance structure has different efficiency. The different criteria are used to evaluate the allocation efficiency of control rights, the traditional Pareto criterion and Hicks criterion only think about the stockholder’s interests, but the paper puts forward stakeholder criterion which expands the scope of interest groups. This paper thinks that though different criterion and shareholder primacy logic is compatible and mutual transformable, stakeholder criterion is an optimal selection because it is corresponding with social welfare standpoints and more efficient government structure.

Allocation of Control Rights; Efficiency Evaluation; Pareto Criterion; Hicks Criterion; Stakeholder Criterion

Can Financial Support Promote Agricultural Green Productivity?
An Empirical Evidence from Agricultural Chemicals Input

XIAO Rui CHEN Chibo

·18·

(SchoolofBusinessAdministration，ZhongnanUniversityofEconomicsandLaw，Wuhan430073，China)

Abstract:Using agricultural input and output panel data of 30 provinces (municipality, autonomous district) from 1995 to 2014 in China, and from the perspective of special agriculture which is represented by planting and agricultural chemicals residue pollution which is represented by fertilizers, pesticides and agricultural film, We apply the GML index to measure provincial agricultural green productivity. Based on this, we construct the restricted panel Tobit regression model to investigate the influence of financial support on Chinese agricultural green productivity. The results are as follows: in terms of full sample, the financial support helps to boost Chinese agricultural green productivity; however, in terms of partition, the correlation of the financial support and Chinese agricultural green productivity is significantly positive in major grain producing areas and major grain sales areas, but grain balance areas has hysteresis effect. Therefore, we suggest that it is necessary to further financial support, implement various financial support strategies according to different regions, constantly optimize agricultural financial supporting system, and improve the efficiency of financial support policy implementation.

Key words:Financial Support; Green Productivity; Agricultural Chemicals; Undesirable Output

Evaluation and Comparative Study on the Governance Ability of
National Audit from the Different Perspective

SHANGGUAN Zeming WU Qiusheng

·76·

(SchoolofAccounting，ShanxiUniversityofFinanceandEconomics，Taiyuan030006，China)

Abstract:Establishing a scientific and rational evaluation index to evaluate and compare the governance ability of national audit can measure the foundation and important guarantee role of national audit in national governance. On the one hand, from the domestic perspective of vertical comparison, this paper finds that the governance ability of China’s national audit is on the rising trend, especially the national audit has a good performance in preventing function and resisting function, and can actively adapt to the changing national governance environment. On the other hand, from the perspective of international comparison, the governance ability of China's national audit is higher than the average level of the world and the average level of middle-income countries．But as the representative of the administrative audit system, China still has a certain gap with the legislative, judicial and independent representative countries, mainly manifested in the lack of independence, the effectiveness of the audit results. So we should not only adhere to the "immune system" characteristics of China's national audit, but also improve the audit system, especially the audit leadership system, as well as audit results and audit reform announcement system, thereby improve the governance ability of national audit effectively.

Key words:National Audit; Governance Ability; National Governance; Evaluation of Governance Ability

Board Networks and Financing Constraints: Information Effect and Resource Effect

WANG Ying1,2CAO Tingqiu3

·83·

(1.SchoolofFinance,ShandongUniversityofFinanceandEconomics,Jinan250014,China; 2.ThePeoples’Bank
ofChinaJinanBranch,Jinan250021,China; 3.SchoolofEconomics,ShandongUniversity,Jinan250100,China)

Abstract:Carrying both resources and information, board networks possess information effect and resource effect. This paper firstly explores these effects from the perspective of financial constraints. We find that the embeddedness of board network contributes to mitigating financial constraints resulted from both information effect and resource effect; however, intensity of the impact is related with network positions in which the central position mainly exerts resource effect, and structural holes mainly exerts information effect; in subsample, both the central position and structural holes exert significant mitigation in non-state-owned enterprises and no significant mitigation in state-owned enterprises. In conclusion, network position is the first element when enterprises are ready to build board networks.

Key words:Board Networks; Financing Constraints; Information Effect; Resource Effect; Network Position; Central Position; Structural Holes

Fiscal Policy, Operation Heterogeneity and Enterprise Value

LV Minkang

·94·

(SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:Fiscal policy is an important part of external environment for enterprise because it would impact enterprise from daily operation and value creation. This paper builds up a framework to analyze how fiscal policy works on enterprise from the perspective of consumer demand, financing and market supply. The relationship between fiscal policy and enterprise value in China is discussed from the perspective of demand and financing guided by the aforementioned framework. The sample has been used to investigate the relationship and adjustment effects from operation heterogeneities. We find that the financial deficit impacts enterprise value positively, and the sale growth, operation cash flow and asset usage affect the relationship between deficit and enterprise value. Less sale growth, better cash flow and less asset usage predicts more high enterprise value. The paper tells us that in China fiscal policy push enterprise’s value creation totally. Also, value-added effect is significant to be observed in SOE firms while value adjustment is typical in non-SOE firms.

Key words:Fiscal Policy; Operation Heterogeneity; Enterprise Value

Trade Liberalization, Move of the Monocentric of Manufacturing Industries and Its Stability

ZHAO Jing1HUANG Lei2LI Dan3

·115·

(1.SchoolofBusinessandManagement,ShanghaiMaritimeUniversity,Shanghai201306,China; 2.Centerof
InformationTechnology,ShanghaiUniversityofInternationalBusinessandEconomics,Shanghai201600,China;
3.SchoolofInternationalBusiness,South-WesternUniversityofFinanceandEconomics,Chengdu611130,China)

Abstract:This paper investigates the influence of trade liberalization on the evolution of the monocentric of manufacturing industries and its stability by extending the closed monocentric model developed by Fujita and Krugman (1995) to the two-country case. It shows that a country's monocentric of manufacturing industries moves to the border near to the other country with the decreasing of its importing barrier. Moreover, its stability becomes weaker during this process. While the country's monocentric of manufacturing industries that has a higher importing barrier is more far from the border than the other country given other conditions as the same. The model developed in this paper helps explain why manufacturing industries concentrate gradually to southeast coast since China's economic reform and openness. The framework proposed in this paper can also be applied to analyze the effect of the Belt and Road Initiative on the spatial redistribution of China's manufacturing industries.

Key words:Trade liberalization; Monocentric; Agglomeration; Manufacturing Industry; the Belt and Road Initiative

The Effect of Outward Foreign Direct Investment on Firm’s Profit Rate:
Evidences from Chinese Industrial Firms

YANG Pingli1,2CAO Ziying3

·132·

(1.SchoolofBusinessAdministration,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China;
2.SchoolofEconomics,HenanUniversity,Kaifeng475004,China;
3.SchoolofEconomicsandManagement,WuhanUniversity,Wuhan430072,China)