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28 September 2017, Volume 29 Issue 9 Previous Issue    Next Issue

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Does Political Risk Affect Loan Pricing? Evidence from Syndicated Loan Market Jiang Tao, Wu Weixing, Gong Di 2017, 29 (9):  3-14.  Abstract ( 209 )   PDF (1102KB) ( 601 )   Chinese commercial banks and other financial institutions that reach out overseas in response to "the Belt and Road Initiative" can not only meet the urgent funding demand by outbound Chinese manufacturing enterprises, but also function as a strategic carrier of export capital. However, the complexity of the international political situation is a major challenge Chinese banking industry has to face in the process of going global. This paper tests the relationship between political risk and syndicated loan pricing based on syndicated loans led by Chinese financial institutions from 1996 to 2014. The empirical results show that political risk is one of syndicated loan pricing factors in developing countries. The spread of syndicated loan increases 56.335 basis points when political risk increases one unit standard deviation in developing countries. However, political risk premium is not significant in the pricing of syndicated loans in developing countries. Further researches indicate that when providing syndicated loan to developing countries, Chinese state-owned banks or non-bank financial institutions require higher political risk premium and when providing syndicated loan to developed countries, only state-owned Chinese banks require political risk premium. References | Related Articles | Metrics

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Can Economic Policy Uncertainty Affect Companies' Cash Holding Behavior? Zhang Guangli, Qian Xianhang, Xu Jin 2017, 29 (9):  15-27.  Abstract ( 252 )   PDF (1262KB) ( 493 )   Cash holding is a key step that companies take to manage risks and economic policy uncertainty is one of the basic risks that they have to face. Assuming that cash holding is intended to guard against risks, this paper studies the impact of economic policy uncertainty on companies' cash holding behavior. We find that economic policy uncertainty is an important factor affecting companies' cash holding behavior. When economic policy uncertainty is high, companies will increase the level and the speed of cash holding. The heterogeneity in financing ability shows a significant impact on the response of companies' cash holding behavior to economic policy uncertainty. The cash holding behaviors of non state-owned enterprises is more vulnerable to economic policy uncertainty. The bank-company relationship and political connection relieves the impact of economic policy uncertainty on companies' cash holding behavior. References | Related Articles | Metrics

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Pairs Trading Strategies Based on Co-integration Theory and OU Stochastic Process Liu Yonghui, Zhang Di 2017, 29 (9):  28-36.  Abstract ( 491 )   PDF (1375KB) ( 1477 )   Pairs trading is a type of risk-neutral quantitative strategy. By analyzing the pairs trading principal and observing the actual market data, this paper proposes a new type of execution methods for pairs trading strategy based on the work carried out by Bertram(2010). Using the out-of-sample data to simulate real trading and demonstrate the pros and cons of different methods, we find that the trading strategy based on co-integration theory and OU stochastic process has a better returns expectation given the same risk exposure and the result of the strategy is solid. References | Related Articles | Metrics

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Empirical Study of the Trust Relationship between Banks and Small and Micro-enterprises Tang Ying, Deng Chao 2017, 29 (9):  37-47.  Abstract ( 162 )   PDF (1117KB) ( 508 )   The trust relationship between lending banks and borrowing enterprises helps mitigate information asymmetry, so it can be considered as a key entry point to improve the lending to small and micro-enterprises. Though the trust relationship between banks and enterprises is receiving more and more attention, current studies focus on the trust from bank side, and ignore the issue from the borrowing enterprise side. This paper presents an empirical study on the small and micro-enterprise's trust in bank based on the survey data collected from two provinces in China, Hunan and Guangdong. Our results show that:(1) a higher level of trust that a small and micro-enterprise endows in bank is positively correlated with its credit availability, (2) small and micro-enterprise's trust in bank reduces the probability of it being discouraged from applying for a bank loan, (3) firm characteristics, personal traits of firm owner and relational factors are all the determinants of small and micro-enterprise's trust in bank. References | Related Articles | Metrics

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China's Venture Capital Network Communities Recognition, Differences between the Communities and Investment Performance Luo Ji, Dang Xinghua 2017, 29 (9):  48-58.  Abstract ( 212 )   PDF (1093KB) ( 379 )   Aiming to research into the increasingly significant community phenomenon in China's venture capital (VC) network, based on the sample of the venture capital events from 2003 to 2014 in China, the paper dynamically detects the structure of China's VC network communities, analyzes the community characteristics and the differences between communities, and then makes an empirical test of the effect of VC network communities on VC's investment performance. The results indicate that the community phenomenon is widespread in China's VC network; each feature attribute of VC within the community presents striking central tendency, however the striking specializing tendency exists between communities; the network community has positive significant effect on VC's investment performance; the clustering of ego-network has a positive moderating effect on the relationship between VC network communities and investment performance. References | Related Articles | Metrics

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Research on Auto Loan Default Prediction Based on Large Sample Data Model Shu Yang, Yang Qiuyi 2017, 29 (9):  59-71.  Abstract ( 410 )   PDF (1268KB) ( 817 )   Using the data containing 47,138 customers in December 2014 from a well-known auto finance company in China, this paper first uses ROC curves to test the efficiency of Stepwise Regression, then respectively applies Binary Choice Model and Count Model to predict the default status of loan customers. Afterwards, we apply Genetic Algorithm to do one-to-one matching on unbalanced sample and finally obtain the predicted results. Based on the above analysis, we argue that the current default evaluation system is ineffective, and variables including customers' basic information, geographical zone, loan messages, car type, credit status, estate, impact events during loan period all have corresponding impacts to customers' default status. Furthermore, the paper finally concludes that balanced sample after matching still possesses superior prediction accuracy rate, that Logistic Model is the most suitable when companies intend to predict whether a customer will default, and that Negative Binomial Model has better efficiency if companies need to know the time length of a customer not paying back. References | Related Articles | Metrics

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Institutional Pressures, Top Managers' Environmental Awareness and Environmental Innovation Practices:An Institutional Theory and Upper Echelons Theory Perspective Xu Jianzhong, Guan Jun, Lin Yan 2017, 29 (9):  72-83.  Abstract ( 349 )   PDF (1118KB) ( 1003 )   Although institutional pressures have a significant impact on the environmental innovation, there is no comprehensive multi-theoretical analysis framework formed yet, especially lacking empirical researches into the impact of top managers' environmental awareness on the environmental innovation under China's Economic New Normality. Based on Institutional theory and Upper Echelons theory, this paper examines links among institutional pressures, top managers' environmental awareness and environmental innovation. Survey data from the 209 manufacturers in China shows that:Coercive pressure(CP) has an inverse U-shape relationship with environmental innovation strategy(EIS), and mimetic pressure(MP) has an inverse U-shape relationship with environmental innovation activity(EIA). We also find that top managers' environmental general awareness(GA) fully mediates the relationship between CP and EIS, and the relationship between MP and EIS. Besides, further analysis reveals that top managers' environmental awareness is positively correlated with the interaction of institutional pressures and EIS, while its correlation with the interaction of institutional pressures and EIA is not significant. Finally, based on these empirical results, we provide the relevant managerial implications and policy suggestions. References | Related Articles | Metrics

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Identification of High-tech Enterprises, Political Connections and Private Enterprises' Technology Innovation Xu Lingling 2017, 29 (9):  84-94.  Abstract ( 185 )   PDF (1115KB) ( 629 )   Using the data of A-share listed private high-tech companies during 2005 to 2014, this paper investigates the incentive effect of identification of high-tech enterprises on private enterprises' technology innovation and the moderating effect of political connections on this incentive effect. Test results show that, identification of high-tech enterprises significantly motivates private enterprises' technology innovation, but this effect only exists in non-family enterprises, high-tech enterprises newly-recognized after 2008 and enterprises with no tax incentives before identification. Further tests find that political connections significantly and positively moderate the incentive effect of identification of high-tech enterprises on private enterprises' technology innovation, but this effect only exists in regions with more government intervention, lower level of financial development and lower level of intellectual property protection. The results of this paper indicate that there is still private enterprises' rent-seeking for political connections with the continuous improvement of formal system at the same time, and political connections still play an important role in private enterprises' resource acquisition. References | Related Articles | Metrics

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Impact of Divisive Faultlines on Subgroup Polarization Based on Network Diversity Perspective Cheng Long, Dang Xinghua, Xiao Yao 2017, 29 (9):  95-109.  Abstract ( 195 )   PDF (1228KB) ( 482 )   Based on previous studies of network diversity and subgroup, we extend divisive faultlines from groups of individuals to technological innovation network, analyze the concrete forms of divisive faultlines in technology innovation network from three diversity attributes:identity, geography and knowledge. Then we use joint application patents data in Chinese electronic information industry from 2000 to 2013 to build inter-organizational technology innovation network, and test the impact of divisive faultlines, actors' heterogeneity and positional embeddedness on subgroup polarization conjointly through multiple hierarchical regression method. Results show that potential divisive faultlines will appear when the node attributes aggregation in technology innovation network is composed of multiple different actors, but its direct impact on subgroup polarization is not significant; However, when the common effect of actors' heterogeneity or positional embeddedness is controlled, the direct effects become significant, and the divisive faultlines will have a bigger impact on subgroup polarization with moderately actors' heterogeneity than with weak or very strong actors' heterogeneity. In addition, the effect of divisive faultlines on subgroup polarization is increased significantly when positional embeddedness dispersion are at high levels, which demonstrates potential divisive faultlines will be triggered by some key mechanisms such as positional embeddedness dispersion. This research conclusion provides a new research perspective for understanding the micro process of technological innovation network structure change, and has guiding significance for exploring the inner mechanism of network subgroup formation and development too. References | Related Articles | Metrics

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Corporate Venture Capital, Real Option and Corporate Value Creation Wang Susheng, Kang Yongbo, Peng Ke 2017, 29 (9):  110-121.  Abstract ( 339 )   PDF (1107KB) ( 738 )   In the context of "PE + listed companies", this paper examines the relationship between CVC program investment and corporate value based on real option theory, and moderating effect of uncertainty, competition and CVC program features. We find that CVC program investment has a positive effect on corporate value by improving the strategic flexibility value of real options. Uncertainty has a positive moderating effect on the relationship between CVC program investment and corporate value. Competition has a negative moderating effect on the relationship between CVC program investment and corporate value. CVC program heterogeneity will also impact the relationship between them. References | Related Articles | Metrics

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Research on Spatial Coupling Coordination Pattern of “Technology-Knowledge” Innovation of Agricultural Science and Technology in China Jiang Ling, Ye Xuanting, Li Lei 2017, 29 (9):  122-132.  Abstract ( 158 )   PDF (3220KB) ( 533 )   Based on the panel data of 2006-2014, the paper constructs an evaluation indicator system of "technology-knowledge" innovation development of agricultural science and technology, analyzes the development level of technology innovation and knowledge innovation, and describes the timing and spatial distribution characteristics of the system coupling coordination development of 4 regional plates, 31 provincial units and 334 prefectures in China by using the coupled coordination degree model. The results show that the overall system efficiency of agricultural science and technology innovation is on the rise, but the gap between "technology -knowledge" is gradually expanding and the interaction is unstable; obvious regional differences exist in the coupling and coordination relationship, the eastern, central, western and northeastern regions respectively present synergistic, running-in, equally-matched and low-level characteristics, and the gap of coordination development between regions may be further expanded. This research will help deepen the understanding of the development trend of China's agricultural science and technology innovation, and provide basic data and decision-making basis for the agricultural science and technology management departments. References | Related Articles | Metrics

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Direct Expression or Indirect Transmission? An Empirical Study on the Impacts of Metaphors and Consumer's Involvement Level on Advertising Wu Shuilong, Hong Ruiyang, Jiang Lianxiong, Zhang Xinle 2017, 29 (9):  133-142.  Abstract ( 332 )   PDF (1105KB) ( 645 )   Metaphor is used frequently in advertising, which can lead to deeply thinking and increased persuasion. This paper analyses advertisement effectiveness from the point of view of audience and the advertising information types. Through two between-subjects experimental designs, the first experiment examines how two levels of advertising message factors (metaphorical versus literal) and involvement factors (high versus low) influence advertising effects. While the second experiment examines how two levels of headline type factors (metaphorical versus literal) influence advertising when the picture is metaphorical and when it is literal. The findings indicate that the metaphor could generate better attitude of advertisement (Aad) and attitude of brand (Ab) than the normal type of advertisement only when it is applied to those people with lower advertising involvement, on the contrary, it is insignificantly effected by both the type of advertisement; when the picture is metaphoric, there is no difference in Aad and Ab between a metaphoric headline and a literal headline; While when the picture is literal, a metaphoric headline yield more favorable Aad and Ab than a literal headline. The research conclusion has the managerial implications for marketing communications practice. References | Related Articles | Metrics

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The Negative Effects of Supplier's Sub-optimal Trust on Performance:Information Exchange as a Mediator Yang Wei, Zhang Yu, Liu Yi, Li Yao, Zhou Yin 2017, 29 (9):  143-154.  Abstract ( 174 )   PDF (1124KB) ( 330 )   In marketing channel researches, more attention is paid to the positive effect of inter-firm trust on performance. However, few studies explore the potential negative effects of sub-optimal trust on channel member's action and channel relationship performance. Based on transaction economic theory and relational exchange theory, this study develops a conceptual model covering sub-optimal trust (excessive trust and insufficient trust), information exchange between channel members and supplier's economic satisfaction. Using regression analysis approach based on 238 sample data from household machine manufactures in China, we examine our hypothesis. The empirical results reveal that supplier's excessive trust and insufficient trust both have negative effect on the information exchange between channel members and supplier's economic satisfaction; in addition information exchange between members is a mediator. Our research indicates the importance of optimal trust in channel relationship, and reveals the internal mechanism and path of relationship between sub-optimal trust with channel performance, which also has important guiding significance for inter-firm trust building and channel relationship management. References | Related Articles | Metrics

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The Effects of Product Popularity on Two-dimensional Perceived Face:The Moderating Role of Self-construal Song Xiaobing, Wu Yuzhen, Ma Pengfei 2017, 29 (9):  155-166.  Abstract ( 173 )   PDF (1212KB) ( 510 )   This research identifies gaining face and protecting face as two dimensions of consumers' perceived face based on the current researches of social psychology. We examined the effects of product popularity in a social group on the two dimensions of perceived face and the moderating role of consumers' self-construal. The results of a cross cultural consumer survey and a lab experiment show that self-construal has different moderating effects on the relationships between product popularity and the two dimensions of perceived face. As for gaining face, self-construal determines the valence of the effect of product popularity. Product popularity has negative effect on gaining face in independent consumers, while it has positive effect in interdependent consumers. As for protecting face, self-construal determines the strength of the effect of product popularity. Product popularity has positive effect on protecting face in both independent and interdependent consumers. Its effect is more robust in the interdependent consumers. References | Related Articles | Metrics

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Impacts of Customer Participation Behavior on Customer Satisfaction and Behavioral Intentions Based on Co-creation Perspective Wu Wenzhen, Chen Qijie 2017, 29 (9):  167-180.  Abstract ( 216 )   PDF (1163KB) ( 1348 )   Under the co-creation mode, the role between firms and customers has changed. The customer participation behavior presents new characteristics. This paper constructs new dimensions of the customer participation based on the co-creation and focuses on the mechanism of how consumer participation influences customer satisfaction and behavioral intentions. Conclusions of the research indicate that from the co-creation perspective, different dimensions of customer participation has different contribution to the co-created customer value; co-created customer value has a mediating effect both between the customer participation and customer satisfaction and between the customer participation and customer behavioral intentions; perceived staff support, the symbol variate of interaction quality, has a partial positive moderating effect between customer participation and co-creating customer value. Based on the research results, this paper provides suggestions on marketing management under the co-creation mode and proposes potential directions for future researches. References | Related Articles | Metrics

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The Impact of B2B Brand Orientation on Brand Performance:The Role of Suppliers' Resource Commitment Huang Lei, Wu Chaoyan 2017, 29 (9):  181-192.  Abstract ( 202 )   PDF (1141KB) ( 403 )   In view of researches on B2B brand orientation, the paper regards suppliers' resources as a key factor in the impact of B2B brand orientation on brand performance, divides suppliers' resource into property-based resource and knowledge-based resource, and then draws on the theoretical model of B2B brand orientation-suppliers' resource commitment-brand performance. The research empirically analyzes data from 178 suppliers and concludes that B2B brand orientation has positively impacts on both property-based resources commitment and knowledge-based resources commitment. The two types of suppliers' resource commitment have positive impact on brand performance, and property-based resource commitment completely mediates the effect of B2B brand orientation on brand performance, while knowledge-based resource commitment partly mediates the effect of B2B brand orientation on brand performance. Market competition intensity significantly strengthens the positive effect of knowledge-based resource commitment on brand performance, but moderating effect of the property-based resource commitment on brand performance is not significant. Finally, the equilibrium of the two types of resource commitment positively influences brand performance. References | Related Articles | Metrics

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The Relationship between Salary Domain Discrepancy and Demission Decision:An Equate-to-Differentiate Theory Perspective Xiong Guanxing, Li Aimei, Wang Xiaotian, Cai Xiaohong, Wei Zihan 2017, 29 (9):  193-204.  Abstract ( 264 )   PDF (1209KB) ( 520 )   As a critical issue, the relationship between salary discrepancy and demission is concerned by managers, management scholars and psychologists. From the perspective of organization, traditional researches focus on how internal salary discrepancy pushes employees to demit. However, the background of boundaryless career requires demission researches to shift the focus to individual's decision mechanism by emphasizing the pull strength of external salary discrepancy. By adopting the Equate-to-Differentiate Theory, this paper examines the relationship between salary domain discrepancy and demission decision. The paper includes two field studies and a laboratory study. Through different measurements, Study 1a and Study 1b explored the relationship between salary domain discrepancy and demission intention by controlling gender, age, seniority, educational background and actual salary. Further, Study 2 strengthens the causal inferences by manipulating salary domain discrepancy. Our research finds that salary domain discrepancy positively affects demission decision. Moreover, employee's position level as a moderator, strengthens the positive association between salary domain discrepancy and demission intention. Generally, this paper enriches the research system of salary discrepancy, and improves the investigation into the uncertain demission decision mechanism in relation to job search. References | Related Articles | Metrics

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Empirical Research on the Effect of Decision-makers' Psychological Factors on the Behavior Alienation in Company Intellectual Capital Investment Zhang Yingzhi, Liu Zhiyuan, Zhang Bingfa 2017, 29 (9):  205-214.  Abstract ( 211 )   PDF (1066KB) ( 592 )   Compared with fixed assets investment such as machinery equipment, enterprise intellectual capital investment has the characteristics of non-obvious input-output relation, long payback period and high investment risk, and thus is likely to lead to the phenomena of alienation in intellectual capital investment such as underinvestment or overinvestment. Based on behavioral economics and psychology theory, this paper analyzes the effect of decision makers' psychological factors on the phenomena of alienation in intellectual capital investment and builds a model of the relationship between the top management team's characteristics and the behavior alienation in intellectual capital investment using top management team's characteristics as proxy variable. Then, taking Chinese listed companies in computer, communication and other electronic equipment manufacturing industry as samples, an empirical analysis is carried out. From the empirical results, we find:First,under the top management team characteristics of greater salary heterogeneity, or more part-time proportion, or bigger team size, a company is more inclined to under-invest in intellectual capital investment; Second, under the top management team characteristics of more shareholding heterogeneity, a company is more inclined to over-invest. The empirical results show that the decision-makers' psychological factors such as social identity, distributive justice perceptions, and social background effect of top management team member,have a significant impact on the behavior of alienation in intellectual capital investment. References | Related Articles | Metrics

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A Review on the Study of Employee Voice from an Integrative Perspective Chen Jian, Shi Kan 2017, 29 (9):  215-228.  Abstract ( 261 )   PDF (1203KB) ( 1103 )   Research about employee voice has been studied across a range of disciplines. However, there has been a lack of an integrative framework on employee voice so far, resulting from differences in its conceptualization across the disciplines. From an integrative view, this review focuses on an analysis of the human resource management and organizational behavior disciplines' research about employee voice. This paper presents a review on the theoretical study of employee voice and identifies the diversification in its concept and study across disciplines. Further, it illustrates the antecedents and consequences of employee voice from management-employee interaction perspective, which is the common view between human resource management and organizational behavior disciplines. Finally, it proposes a model from an integrative view and puts forwards some future research directions. References | Related Articles | Metrics

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An Empirical Study of eBusiness Strategic Alliance and Firm Performance:The Mediating and Spillover Effect of E-collaboration Capabilities Chi Maomao, Zhao Jing, Li Yanhui, Wang Fei 2017, 29 (9):  229-238.  Abstract ( 199 )   PDF (1118KB) ( 337 )   Over recent years, IT strategic alliance has been widely paid attention by business executives and IT managers. Since the existing studies ignore the intermediary factors and the subdivision of financial indexes, this results in inconsistent conclusions of whether and how IT strategic alliance affects firm performance. Based on IT strategic alliance, resource-based view, socio-technical systems theory, spillover effects and e-commerce business practices, this paper builds a model of the relationship among EB strategic alliance, e-collaboration, and firm performance. We adopt PLS 2.0 to analyze 80 firms' survey data and financial data and validate the model. Our findings show that (1)EB strategic alliance has no direct effect on business performance, and indirectly affects firm performance through e-collaboration;(2)e-collaboration capabilities (including e-procurement and e-selling capabilities) is the mediator between EB strategic alliance and firm performance (e.g. ROA and IN/A); (3) e-procurement capability has a spillover effect on e-selling capability. This paper extends prior studies on IT alliance, and provides theoretic basis for researchers and managers to explore the value creation process of EB strategic alliance. References | Related Articles | Metrics

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Research on the Path and Strategies of Improving Chinese Fiscal Transparency Based on Game Theory Shen liang, Wang Yuyan 2017, 29 (9):  239-248.  Abstract ( 189 )   PDF (1140KB) ( 383 )   During the course of improving fiscal transparency, a dynamic game relationship between the public and government officials comes into being. In this research, we construct three fiscal transparency game models, of which the first does not have a reward and punishment mechanism, the second has a punishment-only mechanism and the third has a mechanism of both reward and punishment. By analyzing the three models, we conclude that:(1)when improving fiscal transparency is a spontaneous behavior of government officials and the public, it will not achieve the public satisfaction; (2) strong punishment is the primary condition to ensure officials conscientiously fulfill the responsibility of improving financial transparency; (3)the public supervision is an indispensable factor that motivates officials to enhance fiscal transparency. Therefore, at this stage, it is necessary to improve the legal system, implement a strict set of fiscal transparency assessment indicators, develop social organizations, promote participatory budgeting and encourage public participation and other aspects of system innovation. References | Related Articles | Metrics

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Innovation Paths and Evolutionary Mechanism of O2O Business Model:A Case Study of Pisen's Platform Transformation Jiang Jihai, Wang Fengquan 2017, 29 (9):  249-261.  Abstract ( 303 )   PDF (1283KB) ( 888 )   From the perspective of business model and value creation, this paper explores innovation paths and evolutionary mechanism of O2O business model by the case study of a manufacturing enterprise, which is a typical business model innovation from product-based business model to platform-based business model. First, according to the collected data of Pisen from 2003 to 2016, grounded theory approach is used to explore paths and law of Pisen's business model innovation. Second, the typical innovation paths and evolutionary mechanism of O2O business model are further analyzed. Finally, the evolutionary mechanism is discussed from four aspects such as novelty, lock-in, complementarity and efficiency. The findings show that two key dimensions, subject and result of value creation, are to be changed by enterprises during the process of O2O business model innovation, which forms the typical innovation paths of O2O business model, and these paths consist of typical business models, which is the result of the combination of the two key dimensions. Each typical business model varies in attributes, namely novelty, lock-in, complementarity and efficiency, and they are the key motivations of path evolution. Continuously improving attributes is a process from quantitative changes to qualitative changes for business model, which is shown as substitution and upgrade of typical business models and finally boosts the evolution of O2O business model innovation paths. References | Related Articles | Metrics

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The Practice of Value Increment Target of Management Accounting——As Exemplified by the Private Enterprises within Huaihai Holdings Group Zhu Xueyi, Zhu liangfeng 2017, 29 (9):  262-272.  Abstract ( 175 )   PDF (1130KB) ( 663 )   This study promotes the "decision" service management accounting objectives to the "value added" level and, based on the case study of private enterprises within Huaihai Holdings Group private Enterprises, details the specific value-added target of their internal departments. The case study results show that:(1)Under the Industrial 4.0 background, the content of management accounting should change with the "intelligent manufacturing" environment and information technology change, and then upgrade to a high level where the accounting controls knowledge and financial management, cost management and financial accounting knowledge are combined into an organic whole. (2)By implementing target management mode of the management accounting value increment, the enterprises can organically unify their targets, including:owner's equity maximization, enterprise value maximization and cost management benefit maximization.(3)The responsibility center for decentralized management of enterprises is turning to "value increment center", which helps connect the unit of each "value-creation" visually, concretely, and caliber uniformly by using the value chain management idea. (4) "Functional" management to "value increment" management in the internal management department of enterprises, "product cost control" management to "production capital operation increment" management in the internal production departments of enterprises, will challenge the "economic batch law" and "ABC management Law" of traditional inventory management, and so on. (5) Enterprises to "supply side structural reform" concept to the accounting department, "production-oriented" budget control to "market order type" of real-time tracking, conducive to the harmonization of material flow, capital flow, value flow and workflow. (6) The transformation of the management accounting target mode will be a change of accounting theory and management mode, which is expected to produce strong vitality. References | Related Articles | Metrics