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  • 15 July 2021 Volume 0 Issue 7
      
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  • Research on the Constructing of Public Emergency Budget System
    MIAO Qing-hong
    2021, 0(7): 3-12.
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    As the arrangement of public revenue and expenditure in response to a public crisis,public emergency budget is crucial to the financial management in public emergencies.Establishing a standardized system of public emergency budget is of great practical significance to improve the public finance system and emergency management capability.Despite having some commonalities with regular public budget,public emergency budget is characterized with differences that arise from the nature of public emergencies.By referring to the system of regular public budget and exploring the objectives of emergency management,this article starts with analyzing the features of public emergencies and then determines the objectives and principles of public emergency budget.The public emergency budget system is to institutionally guarantee the objectives of public emergency budget to be achieved and the principles to be followed.This system is composed of emergency budget decision-making system,emergency budget implementation system,emergency budget performance evaluation system and emergency budget supervision system.Finally,focusing on the traits of public emergency budget and potential problems in practice,this article systematically puts forth the ideas and policy suggestions for the constructing of public emergency budget system.
  • The Value-added Tax Reform and Corporate Tax Compliance
    WANG Yi-pu, ZHANG Xuan, JU Ming
    2021, 0(7): 13-24.
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    Value-added tax(VAT)has become the focus of tax reform in various countries,not only because of the strict collection and management of VAT,but also because it can improve the efficiency of the tax system.Based on the quasi-natural experiment of“replacing business tax with VAT”,this paper examines the impact of VAT reform on corporate tax compliance.The results show that the reform can significantly improve the degree of tax compliance of enterprises,and the results are still valid after a series of robustness tests.The influence mechanism test proves that the reform will promote the tax compliance of enterprises by exerting the effect of invoice governance,financing constraint,local tax collection and management.Further studies have found that tax compliance between private enterprises and service industry has increased more significantly,but the tax compliance of state-owned enterprises and real estate enterprises is less affected.This paper emphasizes the systematic analysis of tax reform,supplements the research of VAT's effect on improving the efficiency of the tax system,and analyzes the differential impact of VAT reform from the perspective of property rights and industry.On the basis of the research results,this paper provides empirical evidence for the study of the tax governance behavior of local governments,and provides policy support for tax and fee reduction,national and local tax consolidation,and the deepening reform of electronic invoices.
  • Insurance Development in China:Important Stylized Facts and Explanations
    DUAN Bai-ge, DING Bei-chen, SHEN Jie
    2021, 0(7): 25-41.
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    Understanding the theoretical attributes of insurance products is very important to determine the stage of a country's insurance market development.Based on the incomplete market theory and perspective of insurance market equilibrium,the paper uses the micro data of insurance including both branches of life insurance companies from 2008 to 2018 and property insurance companies from 1998 to 2018 in 31 provinces,municipalities and autonomous regions of China,and first constructs a high-dimensional fixed effect panel data regression model to test the development effect of various types of insurance in China's insurance market with a robust empirical method,and finds some important stylized facts on the level of demand,supply and market equilibrium of insurance products.The regression results show that logarithmic per capita GDP has a significant impact on various types of insurance penetration.The heterogeneity analysis of income elasticity of various types of insurance demand shows that expensive goods,necessity goods and inferior goods coexist in China's insurance market,which broadens the explanation of Mossin paradox in insurance demand theory;there are also obvious differences in the quality and quantity of insurance supply between life insurance companies and property insurance companies;there are regularity characteristics in the product attributes of various types of insurance and their heterogeneity in region,company and time dimensions.This research has important policy implications for understanding the transformation of China's insurance market from a high-speed growth stage to a high-quality development stage,guiding the insurance industry to better explore insurance innovation and structural optimization in the field of social services,and to form a multi-level,wide coverage and differentiated insurance institution system.
  • The Effect of Performance Ranking on Fund Style Drift
    YI Li, SHENG Bing-xin
    2021, 0(7): 42-57.
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    This paper empirically tests the effect of performance ranking on mutual fund style drift using a sample of active managed open-ended stock funds from 2006 to 2019.The results show that performance ranking will cause the losers to significantly increase the style drift while the winners tend to reduce the style drift.Bear market performance ranking will make the style drift significantly change,bull market change is not significant.For the style drift in different directions,small funds prefer value drift,large funds focus on size drift.The style drift in both directions of new funds is greater than that of old funds.Fund manager turnover will make the value drift significantly change.The size drift of star funds is greater than that of bottom funds.For losers and winners,the adjustment on style drift can effectively improve performance ranking,but the final capital flow mainly depends on the change of value drift.This paper provides a new perspective for understanding performance ranking of Chinese mutual fund industry and helps investors to make rational style investment.
  • Directors' and Officers' Liability Insurance and Corporate Tax Aggressiveness: Promoting or Discouraging？
    XIAO Tu-sheng, SUN Rui-qi, WANG Yu-hua, WANG Kai-xuan
    2021, 0(7): 58-70.
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    Whether directors' and officers' liability(D&O)insurance can play its role in China's capital market has aroused wide concern in both theory field and practice.This paper uses the data of Chinese listed companies from 2002 to 2018 to examine the impact of D&O insurance on corporate tax aggressiveness,so as to further clarify the actual effect of D&O insurance in China.The empirical results show that the purchase of D&O insurance significantly increases the degree of corporate tax aggressiveness and supports the preponderance of the risk-taking effect of the liability insurance.After controlling the endogeneity problem,the conclusion is still robust.Further analysis shows that the impact of D&O insurance on corporate tax avoidance has become more and more significant with the improvement of China's legal environment.In addition,mechanism analysis suggests that the impact could be more pronounced when the tax supervision intensity is higher,the information environment of enterprises is poor and the property rights of enterprises are private enterprises.This study enriches the literature on D&O insurance and corporate tax avoidance behaviors,which not only helps listed companies and investors fully understand the role of D&O insurance,but also provides implications for tax authorities to strengthen tax supervision on companies which have purchased D&O insurance.
  • Can Comparable Accounting Information Suppress Managerial Perk Consumption?
    LEI Xiao, TANG Xue-song, JIANG Xin-yi
    2021, 0(7): 71-82.
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    Accounting information comparability is an important feature of accounting information.Based on the data samples of listed companies from 2007 to 2018,this paper examines the relationship between the accounting information comparability and the on-the-job consumption of executives.The study finds that the accounting information can suppress the in-service consumption of executives.By classifying the nature of investors' property rights and the proportion of institutional investors,we find that in the enterprises with private property rights and institutional investors,the accounting information is comparable.The inhibitory effect of executives on-the-job consumption is even more pronounced.Through further research,we find the mediating effect of information asymmetry risk and executives payment motivation on accounting information comparability and executive in-service consumption,revealing the impact of accounting information comparability.
  • Income Inequality and Policy under the Background of Artificial Intelligence Technology Development:Theoretical Analysis
    HUANG Xu
    2021, 0(7): 83-91.
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    Artificial intelligence can increase social output,but it may increase income inequality.The author divides the labor force into low-skilled and high-skilled workers.By improving the neoclassical production function under the static model,the author finds that increasing the stock of artificial intelligence capital and the production efficiency of artificial intelligence technology will increase the skill premium.Furthermore,the author includes education in the research category and expands the static model to a dynamic model.The author finds that artificial intelligence is a biased technology.With the development of artificial intelligence technology,the wages of high-skilled workers will increase.When automation capital replaces low-skilled workers,the wages of low-skilled workers will decrease,the labor share of high-skilled workers will remain unchanged,while the labor share of low-skilled workers will decrease,and income inequality will increase.At the same time,the development of artificial intelligence technology will have two effects on education:on the one hand,the increase in skill premiums will stimulate more laborers to choose higher education;on the other hand,the development of artificial intelligence will increase the requirements for laborers' learning ability.To promote social equity,the government can tax capital and transfer payments to workers.If the tax rate meets certain conditions and the ratio of the amount transferred to low-skilled workers to the amount of high-skilled workers is greater than a certain value,the policy can effectively alleviate the skill premium.However,if artificial intelligence technology does not cross the singularity,the government may face a situation where it is difficult to balance efficiency and fairness.
  • The Impacts of Oversea Demand Variation and Retailing Concentration on Finished Product Export
    YU Kai, HE Dong-wei
    2021, 0(7): 92-102.
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    In order to explore the relationship between the oversea end-consumer demand uncertainty and retailing concentration and the finished product export of a Chinese manufacturer,a sequential game model between the Chinese manufacturer,the oversea importer and retailer is established.This paper theoretically reveals a series of effects of coefficient of demand variation and retailing concentration on the finished product export.The results show that both the export volume and price of the finished product increase with the oversea market price of the finished product.Secondly,for a given oversea market price,the greater the oversea end-consumer demand variation of the finished product,the smaller the export volume,and the smaller the proportion of the manufacturer's profit to the entire supply chain's profit.In addition,there is a critical value for the retailing concentration of the export destination.When the concentration is lower than this critical value,the retailing concentration does not affect the export pricing and volume of the finished product,moreover,both the manufacturer's profit and the ratio of this profit to the supply chain's profit will be stable at a higher level.Conversely,when the retailing concentration of the export destination exceeds the critical value,the higher the concentration,the lower the export pricing,the larger the export volume,and the lower the export profit and the ratio of this profit to the supply chain's profit.
  • The Impact Mechanism of Parent Company's Shareholding on Subsidiary Financial Performance:The Moderating Effects of Geographic Distance and Institutional Distance
    LIU Xiao-yuan, ZHAO Jia-chen, JIA Jia
    2021, 0(7): 103-115.
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    The shareholding ratio of the parent company directly affects the subsidiary's financial performance and is subject to the moderating effect of geographical distance and institutional distance.In the context of China,there is a lack of large sample empirical research on the impact of parent company shareholding ratio on subsidiary financial performance and its boundary conditions.Based on transaction cost theory,principal-agent theory and institutional theory,this paper constructed a research model on the impact of the shareholding ratio of the parent,the geographic distance,and the institutional distance on the subsidiary's financial performance,and used the sample of the subsidiaries of China's listed manufacturing enterprises to test the model by multiple linear regression analysis.The results show that:the higher the shareholding ratio of the parent company,the better the subsidiary's financial performance;the geographical distance negatively moderates the positive impact of the shareholding ratio of the parent company on the financial performance of the subsidiary;the formal and the informal institutional distance also negatively moderate the positive impact of the shareholding ratio of the parent company on the financial performance of the subsidiary.This study is a useful attempt to explore the influencing factors of financial performance of subsidiaries academically.It enriches the relevant literature on how the shareholding ratio of the parent company affects the financial performance of subsidiaries,and provides a theoretical basis for the equity allocation of the parent company to subsidiaries and the practical activities of improving the performance of subsidiaries.
  • The Research on Influencing Mechanism of Factors and Types of User Experience on Brand Equity:An Empirical Study of User Experience Data from the “User Enterprise” NIO
    YANG Yi-weng, DING Meng-yue, JI Xue-hong
    2021, 0(7): 116-128.
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    The experience of “user enterprise” NIO in enhancing brand equity through user experience demonstrates that there is an intimate relationship between user experience and brand equity as well as the mechanism of interaction between them.The existing literature lacks research achievements of comprehensively analyzing the influencing mechanism of multiple factors and different types of user experience on brand equity.Based on brand equity theory,uses and gratifications theory,and expectation-confirmation theory,we introduced product design,service design and digital touch points design into influencing factors of functional experience,as well as service design,digital touch points design and brand values into influencing factors of emotional experience,thus constructed a research model of user experience on brand equity from two dimensions of functional experience and emotional experience.On the basis of this,we collected questionnaires from car owners of the “user enterprise” NIO.The gathered data was analyzed with partial least squares structural equation modeling(PLS-SEM)to examine the influencing mechanism of factors and types of user experience on brand equity.Our results indicate that the path of brand “experience→user satisfaction→word-of-mouth recommendations→brand equity enhancement”is mainly based on the positive influence of product,service and digital touch points design on functional experience,the positive influence of brand values on emotional experience,the positive influence of both functional and emotional experience on brand equity,as well as the mediating role of user satisfaction and word-of-mouth recommendations in the relationship between user experience and brand equity.Our results reveal new insights into the influencing mechanism of factors and types of user experience on brand equity based on user experience data from the “user enterprise” NIO,thus enrich existing research on user experience and brand equity.Our findings provide important managerial implications for enterprises to enhance brand equity through user experience.