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28 April 2016, Volume 28 Issue 4 Previous Issue    Next Issue

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Research on Return-Volatility Relationship Based on Dynamic Panels from the Perspective of Firm Level in China's Stock Market Wang Chunfeng, Huang Ning, Fang Zhenming 2016, 28 (4):  3-11.  Abstract ( 208 )   PDF (1045KB) ( 827 )   Using the sample stocks of the CSI 800 panel data in Chinese stock market, we establish a dynamic panel vector autoregressive model to explore the relationship between return and volatility from the perspective of firm level and examine both of the market and firm factors in "leverage" and volatility feedback effects. The results show that "leverage" and volatility feedback effects both exist in China's stock market and the leverage effect is more dominant. Market factor in leverage effect produces positive effect, showing the reverse leverage while firm factor is significant and negative, but not dominant in a short time. As for volatility feedback effect, market and firm factors are both negative and the market factor is stronger than the firm factor. We also find that large firms with good solvency and high profitability have a high degree of information disclosure. Their asymmetric effects are mainly affected by market factor, while the firm factor is not that remarkable. This research can provide necessary references and reasonable proposals for the investment and regulation. References | Related Articles | Metrics

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A Research on the Determinants of the Announcement and Implementation of Share Repurchases for Chinese Listed Companies He Ying, Li Jiao, Wang Zengmin 2016, 28 (4):  12-20.  Abstract ( 260 )   PDF (1039KB) ( 836 )   In this paper, we take the Chinese listed companies which have announced and implemented open market share repurchases as the sample and design a key determinant analysis model of share repurchases based on the corporate governance mechanism and corporate finance theories. Given the flexibility of open market share repurchase resulting in the time difference of the two stages (the announcement and implementation), and the two stages may be affected by different factors, we use Logistics and Tobit regression model respectively to study empirically the key determinants of the announcement and implementation stages of open market share repurchase from the perspectives of both corporate finance and corporate governance. We find that open market share repurchases are influenced by various factors in both the announcement and implementation stages. Thereinto, operating performance, the level of dividends payments, cash holdings and ownership concentration are the key determinants affecting the announcement of share repurchases, and the actual requisitions of shares for listed companies are influenced jointly by the stock price performance and cash flow level. References | Related Articles | Metrics

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The Dynamic Correlative Relations between Stock Market and Monetary Policy in China Based on a Comparative Study before and after the Stock Index Futures Was Launched Kou Mingting, Yang Haizhen, Xiao Ming 2016, 28 (4):  21-29.  Abstract ( 216 )   PDF (1256KB) ( 941 )   This study empirically investigates the dynamic interacting relationship between stock prices and monetary policy from the perspective of the information spillovers associated with a coherent economic analytical framework comprised of Co-integration, Granger test and MVGARCH model. The empirical results show that a long-run equilibrium between stock market and monetary policy has not changed since the stock index futures was launched, but the Granger causality has changed. The empirical results also show that there is a volatility spillover effect from monetary policy to stock market, and the risk of volatility transmission from monetary policy to stock market is more significant. But the risk spillover between monetary policy and stock market is decreasing after the stock index futures were launched. References | Related Articles | Metrics

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Financial Development Threshold, R&D Input and Capital Transnational Flows Wang Yu, Wang Hao 2016, 28 (4):  30-40.  Abstract ( 204 )   PDF (1082KB) ( 741 )   Using the annual data of 73 economies and quantile dynamic panel, this paper explores the relationship among capital transnational flows, financial development threshold and R&D investment. The findings are as follows:(1) financial scale that reaches a critical value could promote financial capital inflows, the less or more in financial scale could be against the equity outflows, featuring an inverted U shape. The credit market is significant for equity outflows in developing countries and the stock market is significant for those in developed countries. (2) the improvement in financial efficiency and function could promote capital flows, featuring a J shape. Financial efficiency is an important way of overcoming the influence of scale threshold. (3) R&D investment and its cross term with financial development could only influence capital flows in developed countries, showing that a highly efficient financial market and financial instrument innovation could absorb the capital inflows and at the same time ensure the ownership and controlling right. The key of optimizing capital flows in China is to improve domestic financial efficiency and the level of R&D investment. References | Related Articles | Metrics

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The Effect of Style Timing Ability on Fund Performance Yi Li, Hu Zhenhua 2016, 28 (4):  41-51.  Abstract ( 310 )   PDF (1083KB) ( 1916 )   This paper adopts the canonical correlation method to examine whether fund managers' daily style timing abilities are able to affect fund performance for 519 actively managed open-ended mutual funds from January 2002 to December 2013. We find that there is a moderate correlation between style timing abilities and fund performance. Market timing ability mostly from growth funds can affect fund performance more significantly than value and momentum timing abilities mainly from value and balance funds, while the effect of size timing ability on fund performance is insignificant. The choice of performance indicators does not affect fund ranking, but the effect of style timing ability on fund performance makes Sharpe ratio being a suboptimal choice, which provides investors with a new viewpoint for rational investment. References | Related Articles | Metrics

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Housing Price Expectations, Land Prices and Behavior of Real Estate Enterprises Zhang Hao, Li Zhongfei 2016, 28 (4):  52-61.  Abstract ( 223 )   PDF (1054KB) ( 1597 )   Based on an analysis of the "Corn Laws Paradox" in the land market, this paper builds a land price model taking real estate investment decisions and housing price expectations into account. We re-analyze the affect pathway from real estate market to land market, and explore the housing price expectations of real estate enterprises and their behavior in the land market. We adopt the logic order "first testing the effectiveness of instrumental variables, then judging the endogenous of the model and finally determining the model form" to avoid model misspecification. The results show that the housing price expectations of real estate enterprises have significant impact on their behavior in the land market, and that the faster they adjust housing price expectations, the better they perform in the land market. This paper also shows that in China's land markets, the land prices are mainly affected by the housing price expectations but not by housing prices themselves. References | Related Articles | Metrics

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The Conduction and Resolution of Population Aging, Pension Income Gap and Financial Risk——An Empirical Study of City A Yao Jinhai 2016, 28 (4):  62-72,122.  Abstract ( 179 )   PDF (1344KB) ( 911 )   Population aging has brought huge impacts and challenges. The income gap in pension funds increased financial burden, which even led to financial risk. This paper builds a theoretical model, which reveals the relationship between the aging population, pension payments and financial risk. We conduct an empirical study with city A as the research sample. The results show that the increase of the pension fund investment yield and the extension of the retirement age can help narrow the pension income gap, and effectively guard against and dissolve the financial risk. Therefore, the government should improve the supplement mechanism such as transfer of state-owned assets and fiscal transfer payments. And at the same time, we should make up the pension personal account and vigorously promote the marketization of pension fund investment operation. References | Related Articles | Metrics

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Comparative Study of Chinese Population Ageing Based on Vague Set Cui Chunsheng 2016, 28 (4):  73-78.  Abstract ( 196 )   PDF (1010KB) ( 1134 )   This paper uses Vague set theory to make a comparative study in relation to the degree of population aging in different regions of China. By defining the Vague value of the aging vague and contrasting "Matthew effect" function, the paper makes a lateral assessment about the degree of population aging in different regions. This paper innovatively applies Vague set theory, a research tool for uncertainty issues, to study social science issues and reaches a satisfactory result based on the data of statistical yearbook. The research not only provides a new idea and method for the study of aging population, but also opens a new area of application of the vague set. References | Related Articles | Metrics

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Business Model Researches in TV Media Industry: A Review Li Jingyu, Feng Xiaoyi, Zhang Qian, Li Yongwu, Yang Zhihua, Yun Xin, Qiao Han, Hu Yi, Wang Shouyang 2016, 28 (4):  79-88.  Abstract ( 245 )   PDF (1337KB) ( 1991 )   Along with the rapid development and popularity of Internet and New Media, TV media industry is forced to change rapidly, which makes business model research become significant for the development and business model innovation of the industry. In order to explore further knowledge of business model in TV media industry, this paper reviews the development of previous researches on the business model of TV media industry, drawing a conclusion of the business models and relative research methods and proposing some thoughts for further studies from three aspects. References | Related Articles | Metrics

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On the Option Game Model of the Investment Decisions for Radical Technology Innovation in Enterprises Liu Weibai, Li Zhong 2016, 28 (4):  89-97.  Abstract ( 195 )   PDF (1085KB) ( 844 )   Based on introducing the characteristics of project investment in enterprises, the Approach of Poisson Distribution is led into this paper to analyze the evolution process of radical technology innovation in enterprises, with the further combination of relevant literatures and decision practices, the option game model for it is constructed, aiming to analyze three such cases as positive jump, negative jump and uncertainty that project benefits and the cost of inputs have produced, influenced by the disruptive technology innovation of enterprises. Therefore, the values of investment opportunities and the investment threshold of radical technology innovation projects are respectively obtained. The research indicates that in the decision-making of investment for the project of radical technology innovation in enterprises, two major factors that affect investment decisions are to achieve the jump of the project value caused by the radical technology innovation and its frequency. The radical technology innovation enables businesses to obtain sustainable development, and crack the bottlenecks and barriers that exist in their process of development, thus achieving a virtuous cycle of sustainable development. References | Related Articles | Metrics

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Study on External Financing Structure Effects on Innovation Mechanism of Private Enterprises Zhang Jinhua, He Xuan, Li Xinchun 2016, 28 (4):  98-108.  Abstract ( 240 )   PDF (1072KB) ( 1036 )   Different from the previous researches about financing issue of private enterprises, this paper shifts the perspective from internal financing to external financing structure, mainly to explore the relationship between the degree of dependence on banks and the innovation ability of enterprises in the form of external financing process. Taking the 2010 China enterprise entrepreneurs questionnaire survey database as a sample of empirical analysis, the results show that private enterprises more dependent on banks are more likely to be inhibited in terms of innovation ability. In particular, in the high-tech industry, the negative effect that banks pose on enterprises' innovation ability is more obvious due to the high risk characteristics of high-tech enterprises and their asymmetry. However, with much higher shareholding ratio of the non-bank financial institutions, the negative relationship between the dependence on banks and the innovation ability of the private enterprises has eased to some extent. Finally, this paper provides some corresponding policy recommendations with the purpose of helping private enterprises to reduce dependence on banks, and weaken the dependent effects on enterprise's innovation ability. References | Related Articles | Metrics

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Empirical Study Concerning the Effect of Psychological Attachment on Employees' Behavior——Based on a Sample of China's Small-and Medium-sized Enterprises Yan Jing, Fan Yun, Zhang Xu 2016, 28 (4):  109-122.  Abstract ( 245 )   PDF (1242KB) ( 738 )   Based on attachment theory and social exchange theory, this study explores an integrated model of employees' idealized and situated psychological attachment. Attachment can be divided into two dimensions (resource-based and identity-based). The research investigates the interaction effect of the two dimensions and contextual factors (role ambiguity and personal guanxi) on citizenship behavior toward different foci (supervisor and organization). Results show that identity-based attachment has a positive effect on citizenship behavior toward the organization, resource-based attachment has a positive effect on citizenship behavior toward the supervisor; only when the level of role ambiguity is high, personal guanxi has a positive effect on the relationship between attachment to supervisor and citizenship behavior toward the supervisor; the interaction between role ambiguity and personal guanxi has a negative effect on the relationship between attachment to the organization and the citizenship behavior toward the organization. References | Related Articles | Metrics

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The Relationship among Proactive Personality, Knowledge Sharing and Employee's Innovation Behavior Zhang Zhengang, Yu Chuanpeng, Li Yunjian 2016, 28 (4):  123-133.  Abstract ( 1048 )   PDF (1110KB) ( 4917 )   Based on the two cognitive perspectives:individual and situational characteristic, this paper tests the relationship among proactive personality, knowledge sharing and employee's innovation behavior using multiple regression analysis of linear models through 199 staffs' questionnaire surveys. In addition, based on trait activation theory, innovation climate's moderating effect between the relationship of proactive personality with knowledge sharing and employee's innovation behavior is also tested. Results of the regression analyses suggest that proactive personality has a positive impact on the employee's innovation behavior, and knowledge sharing has a moderating role between proactive personality and employee's innovation behavior. The results also show that innovation climate negatively moderates the relationship of proactive personality with knowledge sharing and employee's innovation behavior. Higher innovation climate weakens the proactive personality's positive influence to knowledge sharing and employee's innovation behavior. These results further support the basic idea of the trait activation theory. Therefore, creating a good innovation climate to make up the "inadequate" of employee's initiative is a feasible path for managers. References | Related Articles | Metrics

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The Curvilinear Relation between Leader's Forgiveness and Job Performance: Moderating Effects of Conscientiousness and Procedural Justice Zhang Junwei, Long Lirong 2016, 28 (4):  134-144.  Abstract ( 305 )   PDF (1213KB) ( 1533 )   For the relation between leader's forgiveness and job performance, social exchange theory and reinforcement theory reach their respective conclusions which are opposite to each other. In order to address the inconsistent findings, this research examines the possibility of a curvilinear relation between leader's forgiveness and job performance, and the moderating effects of conscientiousness and procedural justice. The results of hierarchical linear model reveal that the inverted U-shaped relation between leader's forgiveness and job performance is not significant, while employees' conscientiousness plays a moderating role in the relation. Employees' conscientiousness weakens the inverted U-shaped relation between leader's forgiveness and job performance, such that the inverted U-shaped relation is stronger for employees with low conscientiousness than for employees with high conscientiousness. In addition, HLM results also show that the three-way interaction involving quadratic leader's forgiveness, conscientiousness, and procedural justice is significant, such that the negative moderating role of conscientiousness on the inverted U-shaped relation between leader's forgiveness and job performance is stronger for employees with low procedural justice than for employees with high procedural justice. References | Related Articles | Metrics

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The Reason Analysis of Performance Polarization of Chinese GEM (Growth Enterprise Market) Listed Companies after the Listing Xing Zhouling, Zhang Yichi, Wang Yiming 2016, 28 (4):  145-154.  Abstract ( 252 )   PDF (1253KB) ( 785 )   This paper explores the mystery of performance polarization of 130 companies listed on GEM and finds that the polarization is caused mainly by authorization and incentives. When external environment changes rapidly, production technologies are complex and high skills are required, authorization and incentives can stimulate the potential and enthusiasm of staff, leading to a good corporate performance. When external environment does not change rapidly, production technologies are not complex and high skills are not required, authorization and incentives will increase enterprises' costs, leading to a poor corporate performance. Therefore, when the financial resources of GEM listed companies get to a certain level, they must allocate resources in a scientific and rational way and keep innovating in order to maintain high profits. To allocate effectively resources requires that human resource management should aim not only to keep development strategy in line with inter-enterprise systems, but also to match dynamic environment outside, forming a certain relationship model. References | Related Articles | Metrics

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Funds Performance Evaluation Based on the Investment Strategies Qi Yue, Sun Xinming 2016, 28 (4):  155-165.  Abstract ( 339 )   PDF (1069KB) ( 1491 )   Fund performance evaluation is a hot topic in finance. We choose several funds from Chinese top 10 fund management companies as our sample. Based on the detailed analysis of their investing strategies and objectives, we reproduce their investing strategies. This is a new method, and we create our investment portfolio as fund performance evaluation benchmarks to evaluate fund performance dynamically and to judge profiles of fund managers as well. We find that the return of the funds is lower than our portfolio and the managers fail to fulfill the claimed strategies and objectives. References | Related Articles | Metrics

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Institutional Distance, Trans-regional Business Experience and Market Entry Mode Song Tiebo, Wu Xiaojie, Wang Xiuqiong 2016, 28 (4):  166-177.  Abstract ( 287 )   PDF (1116KB) ( 1276 )   Integrating the institution-based view and resource-based view in a unified framework, this paperexamines the internal influence mechanism of institutional distance between different regions on trans-regional market entry modes choice by questionnaire survey of 150 firm-level samples, and obtains the following three conclusions. First, the institutional distance between the host and the home regions has negative influences on the level of resource commitment, control, and equity ownership for market entry mode. Second, trans-regional business experience has positive influences on the level of resource commitment, control, and equity ownership for market entry mode. Finally, there exists interaction effect on the level of resource commitment, control, and equity ownership for market entry mode between institutional distance and trans-regional business experience. These results have critical implications for business decisions of trans-regional firms. References | Related Articles | Metrics

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Product Diversification Strategy and the Decision on Financing Structure: The Theoretical Model and Its Empirical Study Liang Yasong, Zhong Tianli, Hu Yanbin 2016, 28 (4):  178-185.  Abstract ( 222 )   PDF (1056KB) ( 856 )   Based on the agency theory and under the premise of taking the interests of the customers into account, product diversification strategy and the theoretical model of financing structure are constructed. According to the Panel data released by the GEM in 2009-2012 China, by WLS, the influence on the decision-making of financing structure by the diversification strategy of GEM is tested in a real way. Theoretical models show that the optimal financing structure is a balanced result of product diversification strategy and the cost of agency. Empirical results show that diversity of GEM has a significant negative correlation with the financial leverage, which gives strong support to the theory that analysis should be given to the relationship between product diversification and the financing structure based on the agency theory. References | Related Articles | Metrics

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Measuring B2C and C2C Online Shopping Logistics Service: A Conceptual Model and Its Theory Framework Xie Guangying 2016, 28 (4):  186-200.  Abstract ( 409 )   PDF (1209KB) ( 1965 )   The volume of B2C and C2C online shopping market increases quickly and continuously, which makes logistics service quality being a new focus of competition, though pricing is still a widely used strategy of websites. Large scale websites are busy building logistics departments, and the third party logistics companies are also busy improving themselves to enlarge market shares. This paper concerns with B2C and C2C online shopping logistics service quality, and it mainly has two aspects of contributions:one is the thorough review of former researches from service quality to logistics service quality and internet based logistics service quality, providing complete illustrations and analyses to understand service quality theory; the other is the construction of B2C and C2C online shopping logistics service quality assessment model and its theory framework, including the definition of concepts, measuring methods, procedures and dimensions with specific items, which would offer some references to the future research of online shopping logistics service quality and its improvement as well as other related researches. References | Related Articles | Metrics

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An Empirical Study on the Antecedents of Usage of Self-service Technology: Based on Preference Theory Jiang Lu, Jin Yufang 2016, 28 (4):  201-211.  Abstract ( 234 )   PDF (1172KB) ( 1168 )   Post-consumption behavior is a key of success when competition becomes increasingly fierce. The focus is shifting to usage behavior which is a quiet different concept from the existing post-purchase behavior such as satisfaction, loyalty, word of mouth, etc. This paper analyzes usage behaviors from two perspectives:usage frequency and usage diversity. By introducing hierarchy customer value theory and preference theory, the present research provides demonstration for the relationship between effective customer value and usage behavior through preference as a mediator. The empirical setting is self-service technology. This research tests the hypotheses and model by the data from an online survey web. The results show that:self-service preference has a directly positive influence on usage behavior; the effective value shows indirect powerful effect on usage behavior by through preference. These results expand the research of usage behavior and its antecedents, and help managers to understand customers by specific usage behavior. References | Related Articles | Metrics

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Exploring the Enterprise Boundary and Relevant Propositions by Studying the Governance Transaction Relationship and Business Transaction Relationship——Findings from a Multiple Cases Study Wei Wei, Lin Guiping, Zhu Wuxiang 2016, 28 (4):  212-224.  Abstract ( 253 )   PDF (1081KB) ( 936 )   Based on the theory of business model of the stakeholder's transaction structure, this paper analyzes the relation between the business transaction relationship and the governance transaction relationshipthrough case study. Our study shows that it's necessary to separate the business transaction relationship and the governance transaction relationship no matter an internal or external transaction is to be analyzed; the business transaction relationship mainly pays attention to the transaction contents and value distribution produced by the corresponding transaction, and the governance transaction relationship mainly pays attention to surplus value distribution of the stakeholders and the corresponding stakeholders. Clearly separating the business transaction relationship and the governance transaction relationship can not only help enterprises plan their commercial boundary, but also assist to promote the innovation of their business model. References | Related Articles | Metrics

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Cognitive Structures and Innovative Attention of Founding Team: A Multi-case Study Based on TMS Perspective Ye Zhuxin, Mai Yiyuan 2016, 28 (4):  225-240.  Abstract ( 294 )   PDF (1163KB) ( 1432 )   Innovation of new ventures often confronts many resource constraints and uncertainties, and the failure rate is relatively high. This discourages the founding teams' willingness to make attempts for innovation, further to say, they even don't attach importance to innovation. As the key decision makers of new ventures, little is known about how founding teams affect their attention to innovation. Drawing from the attention theory and transactive memory system (TMS) perspective, we conduct a multi-case study to explore this gap. Analyzing the data collected from 6 founding teams of the new high-tech ventures in a development zone of China, we find that the teams' TMS have great influence on their search behavior on new information and new knowledge for innovation. Founding teams with strong TMS would promote team members' confidence, social identity as well as the interdependence among them. Meanwhile, strong TMS also contribute to members' risk-sharing and value judgments about innovative behavior, and ultimately affect the team's attention to innovation. Our findings increase the perspectives of innovation research, provide important insight for founding teams' decision-making about innovative activities, and enrich the research about entrepreneurial cognition. References | Related Articles | Metrics