Management Review

Do Security Companies Going Public Improve the Market Performance of IPO Enterprises?

Wang Huacheng, Chen Zhanliao, Ouyang Caiyue, Wang Xin

2021, 33 (3): 3-13.

Abstract ( 316 )

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Security companies play an important role in the process of initial public offering in capital market. This paper studies whether security companies going public would affect the market performance of IPO enterprises. Taking advantage of the A-share IPO data from 2007 to 2016 and adopting the PSM+DID method, this paper finds that security companies going public indeed improve the market performance of IPO enterprises, as shown in lower underpricing rate, and higher buy and hold long-term yields (BHAR). In addition, this paper finds that the worse of the earnings quality of the pre-IPO enterprises, the higher the effect of improvement of market performance. Finally, this paper finds that compliance level and risk management ability are the two important channels that security companies going public improve the market performance of IPO enterprises. This paper enriches the literature on going public of financial intermediaries and the market performance of IPO enterprises. And these findings also have policy implications on regulatory authorities given that the financial industry in China is under deep reform.

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Dynamic Portfolio Optimization Based on Downside Risk Measures in the Modified Black-Scholes Financial Market

Wang Xiuguo, Wu Huiling

2021, 33 (3): 14-28.

Abstract ( 261 )

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In the modified Black-Scholes financial market, this paper investigates continuous-time portfolio optimization problems based on CVaR and CCaR risk measures. The expressions of the optimal investment strategies and the efficient frontiers are obtained in closed form. The optimal investment strategies exhibit two-fund separation theorem which includes the riskless asset and equal-volatility portfolio. If the risk exposure of the risky assets is given by the investors in advance, then the optimal investment strategy can be determined by an estimated volatility matrix, without knowing the parameters of expected return. Hence, the sensitive problem brought by the traditional optimal portfolio weight in estimating the expected returns is solved efficiently. Moreover, the optimal investment strategy and the efficient frontier of the mean-variance model are derived by using our proposed method. Finally, the empirical analysis shows that our optimal portfolio weights are stable over time and obtain a significantly better performance than the equal-weight investment strategy and the minimum variance investment strategy, both of which are not influenced by the estimation of the expected returns.

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Research on the Correlation between Industry Dynamic Evolution and Securities Market Risk Based on Complex Network

Liu Chao, Qian Cun, Luo Chunyan

2021, 33 (3): 29-40.

Abstract ( 221 )

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The securities system is an important part of the financial system. It is of great theoretical and practical value to explore the relationship between the dynamic evolution of industry association of listed companies and the risk of securities market. This paper uses mutual information coefficient to establish the industry correlation network of China's listed companies, uses CAViaR model to measure the risk of China's securities market, and analyzes the network correlation, distribution structure and market wind combined with DCCA coefficient method and nonlinear Granger Causality test. Finally, the network characteristics of the two risk aggregation regions are compared and analyzed. The results show that:when the security market risk increases, the industry system of listed companies will be more related, and each industry will show a similar market trend. At this time, although the system structure tends to be closer to the “center-periphery” structure, the self-regulation function of the industry system of listed companies will weaken or even dissolve the impact of market risk on the industry association and the external morphological characteristics of the association structure have periodic shocks; when the correlation between industries is enhanced, it will accelerate the spread of risks to a certain extent. According to the above conclusions, this paper puts forward the relevant policy recommendations.

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Influence Mechanism and Effect of State-owned Enterprises' Investment on Private Enterprises——An Imitative Investment Based on Peer Effect

Liu Jingjian, Li Huizhu, Hao Kangxin

2021, 33 (3): 41-53.

Abstract ( 264 )

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This paper analyzes the influence mechanism of state-owned enterprises'(SOE) investment on private enterprises' under the background of government intervention. By using the listed manufacturing companies from 2007 to 2015, our empirical study shows that:the investment level of SOEs is higher than that of private enterprises; The investment of private enterprises increases with SOEs', but decreases after it reaches a critically high level; with the increase of market power of SOEs, the investment of private enterprises decreases and shows an accelerated downward trend. For the private enterprises with lower information efficiency and higher asset specificity, the imitative investment level is higher and resource allocation efficiency is lower; private enterprises' investment is significant when SOEs overinvest, but not significant in the case of underinvestment. This paper provides some theoretical explanations on overcapacity and investment cycle fluctuations, and also inspirations for the improvement on market mechanism, investment policy and information feedback.

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The Evolution of Online P2P Lending Risk: Game Based on Platform and Supervisor

Wei Mingxia, Zhao Yan, Xia Yu

2021, 33 (3): 54-65.

Abstract ( 230 )

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Risk issues of peer-to-peer (P2P) lending have become increasingly prominent with its rapid development; in order to promote the sustained and healthy development of the P2P lending market, it is necessary to effectively supervise the P2P lending risk evolution mechanism based on its clarity. This paper applies evolutionary game theory by establishing a game model between P2P platform and supervisor in this context. The model is then solved and deduced, and numerical experiments are carried out on this basis to reveal the rules of P2P lending risk evolution. We find that the P2P lending risk is the result of repeated game between the platform and the supervisory under the established conditions, the level of market risk varies with the structure of the behavioral groups of both parties. The increase in the compliant operating income of the P2P platform will decrease the risk level of the platform group; the raise in the strict supervision income and the reduction in the loose regulatory income will lead to a decrease in the risk level of the regulators; the risk level of both parties will decline when the penalty of the platform and the transfer income of the regulator increase, and the relatively low online P2P lending risk level is gradually formed.

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An Empirical Study on the Impact of Pharmaceutical Policies on the Stock Market of Pharmaceutical Industry in China: An Application of Ensemble Empirical Mode Decomposition

Yang Tao, Wei Yunjie

2021, 33 (3): 66-74.

Abstract ( 226 )

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Pharmaceutical policy has been changing constantly for many years in China, and it has influenced the development of pharmaceutical industry to some degree. As the pharmaceutical industry has played a more and more important role in the stock market, how the pharmaceutical policy affects the stock market of pharmaceutical industry is one of the research hot points. In this paper, firstly, the Ensemble Empirical Mode Decomposition (EEMD) is utilized to decompose the intraday volatility of Shanghai and Shenzhen 300 and the pharmaceutical index; secondly, the IMFs are reconstructed to analyze the differences between the intermediate frequency parts of those two series; thirdly, based on the promulgation time of medical policies, this paper explores the dynamic relationships between medical reform policies and the fluctuations of the secondary market of the pharmaceutical industry and analyzes the impact of medical reform policies on the secondary market of the pharmaceutical industry. The release of pharmaceutical policies is closely related to the fluctuation of the pharmaceutical index. Affected by new medical reform policies such as the quality and efficacy consistency evaluation of generic drugs, the pilot program of the drug marketing authorization holder system, reform and improvement of the supply and the use of generic drugs, the pharmaceutical index has risen to varying degrees, rising by 10.96%, 3.47% and 1.31% respectively. Meanwhile, affected by new medical reform policies such as “Deepening the Medical and Health System Reform in 2016”, the “two invoice system” and the cancellation of drug markups, and the “4+7” urban drug centralized procurement, the pharmaceutical index has dropped by 3.79%, 0.87% and 7.98% respectively. This study can provide scientific evidence for government to make relevant decisions, enterprises to adjust the development direction and investors' investment behavior.

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Study on Application of Deep Learning in Technical Analysis of Sector Indexes

Wang Chao

2021, 33 (3): 75-83.

Abstract ( 225 )

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Investment strategies based on technical analysis have attracted much attention from researchers and investors in A-share market. With the evolution of financial markets, the characteristics of asset price become more and more complicated, and some researchers have pointed out that the performances of classical linear models suffer noticeable degradation in terms of predicting asset price. Considering that deep learning techniques are efficient at capturing intricate quantitative models in nonlinear system, deep-learning-based methods have been introduced into the fields of economic and financial analysis recently. In this paper, deep neutral network (DNN) is applied to analyze the technical indicators and predict the falling and rising tendency of sector indexes in A-share market. The results of empirical analysis indicate that DNN has certain ability in technical analysis. The DNN-based technical analysis method contains four major steps. Firstly, a 36-dimension vector of technical indicators is computed to represent the technical states of sector indexes. Secondly, in order to reduce the dimension of input data and improve the performance of the DNN system, the data of technical indicators are compressed by using two-directional two-dimensional principle component analysis ((2D)²PCA). Thirdly, the DNN system is trained to obtain optimized network coefficients by using historical data. Finally, the test technical features are inputted into DNN to predict the tendency of the sector indexes. The proposed method is validated by using trading data of 28 sector indexes in A-share market between 2000/01/04 and 2017/07/20. Results of empirical test show that the DNN-based method improves the accuracy for predicting the tendency of sector indexes in comparison with methods based on support vector machine (SVM). Furthermore, the prediction accuracy reaches 55%~65% when the DNN-based method is used to distinguish rise and falling tendency, which again implies the potential application value of DNN in technical analysis in A-share markets.

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Rural Financial Development and the Improvement of Agricultural Green Total Factor Productivity

Li Jianxuan

2021, 33 (3): 84-95.

Abstract ( 329 )

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Under the background of the Rural Revitalization Strategy, the green and sustainable development of agriculture is of great importance, and rural finance plays an important supporting role in this process. In this paper, we mainly study how rural finance development affects the agricultural green total factor productivity. Based on China's provincial panel data from 2000 to 2015, this paper uses the non-radial direction distance function and meta-frontier method to measure the agricultural green total factor productivity and its decomposition, and then applies the dynamic spatial panel model in the following empirical analysis. The results show that, overall, the GTFP presents different characteristics corresponding to the different regions and different time phases, and have significant spatial autocorrelation. The increase in the scale of rural financial development, the optimization of the structure of rural financial development and the improvement of the efficiency of rural financial development are all conducive to the promotion of GTFP, but our results also suggest that there are differences among the mechanisms. Specifically, increasing the scale of rural financial development is mainly to promote the agricultural GTFP through promoting agricultural technological progress and narrowing the technological gap; optimizing the rural financial development structure can promote the agricultural GTFP through improving technological efficiency, promoting technical progress and narrowing the technological gap; improving the efficiency of rural financial development can promote the agricultural GTFP through improving technological efficiency and promoting technological progress. On this base, we put forward some relevant policy recommendations for improving the agricultural GTFP from the perspective of rural financial development.

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The Mode and Evolution Analysis of Civil-Military Technology Integration under the Technology Convergence Barriers

Cao Xia, Yang Xiaojun, Zhang Lupeng

2021, 33 (3): 96-106.

Abstract ( 240 )

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Technology convergence is one of the foundations in military-civilian integration strategy in China. The technology convergence barriers have a significant influence on the efficiency of military and civil companies. This paper analyzes three civil-military technology integration modes, which are symbiosis mode, relying mode and embedded mode. Depending on these modes, we discuss the evolutionary process of military and civil company and how the technology convergence barriers affect the development of military and civilian technology fusion. The results show that in the mode of symbiosis, military enterprises will choose to cooperate continuously in a reasonable range of technical convergence barriers, while civil enterprises only choose continuous cooperation when the technical convergence barriers are lower. In the mode of relying, military enterprises in general technical barrier degree will choose to cooperate first and tend to the opposite, while civil enterprises will choose not to cooperate continuously only under high technical barriers. In the embedded mode, enterprises have a strong willingness to cooperate and to be specific, military enterprises choose to give up continuous cooperation only if they have high barriers, the civil enterprises will always choose cooperation strategy regardless any extent of barriers.

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Exploratory Research on the Induction Mechanism of Relay Innovation of Strategic Emerging Enterprises Based on Discourse Analysis

Qu Xiaoyu

2021, 33 (3): 107-117.

Abstract ( 158 )

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Relay innovation is a new and unique innovation pattern which conforms to the law of technology innovation of strategic emerging enterprises. This research uses discourse analysis method, takes strategic emerging enterprises as research object, excavates the induction factors of relay innovation, and constructs the induction mechanism of relay innovation of strategic emerging enterprises. The results show that:(1) The discourse model of induction mechanism of relay innovation of strategic emerging enterprises includes four induction factors:trigger force, enabling force, situational force and disturbing force. (2) Every induction factor can be further subdivided into many subcategories. For instance, trigger force includes interest expectation, strategy orientation and entrepreneur cognition. (3) Each factor has a different effect on relay innovation. Trigger force is a direct factor of relay innovation of strategic emerging enterprises. Enabling force is a direct factor of relay innovation of strategic emerging enterprises, but also an indirect factor of relay innovation of strategic emerging enterprises. Situational force and disturbing force both have positive moderating effects on the relationship between trigger force and relay innovation.

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The Mechanism of Market Ambidexterity Driving Entrepreneurial Performance in New Ventures: The Mediating Effects of Business Model Innovation

Li Wei, Wang Qing, Yang Xuecheng

2021, 33 (3): 118-128.

Abstract ( 269 )

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The market exploration and exploitation are the key actions of New Ventures (NVs) in responding to potential and existing market demands, but the research on the coordination of them and their impacts on entrepreneurial performance needs to be deepened. This paper, drawing upon the ambidexterity theory and introducing novelty- and efficiency-centered business model innovation (BMI), explores the mechanism of market exploration and exploitation driving entrepreneurial performance in NVs. The research conclusions show, using empirical data collected from 183 NVs in China, the balance of market exploration and exploitation has positive effects on efficiency-centered BMI, while the interplay of market exploration and exploitation exerts positive influence on novelty-centered BMI. Meanwhile, efficiency-centered BMI has a positive impact on the new venture growth performance and customer performance, while novelty-centered BMI positively affects the new venture growth performance and investment performance. These conclusions provide several managerial implications for the coordination of market exploration and exploitation, thus promoting BMI to optimize entrepreneurial performance in NVs.

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Intellectual Property Rights Protection, Social Network and New Venture Performance

Wang Yu, Hu Haiqing, Zhang Lang

2021, 33 (3): 129-137.

Abstract ( 235 )

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Using the GEM listed companies during 2011-2016 as samples, this paper examines the mechanism of how IPR protection impacts the new venture performance. And based on social network analysis, we introduce the social network of independent directors to analyze the moderating effect. The results show that although IPR protection can somehow restrain the innovation performance, the social network of independent directors can significantly weaken this negative influence. In addition, it verifies that the social network centrality can be used as an effective moderating mechanism to alleviate its negative externality effect. Furthermore, by grouping analysis on high-tech industry and traditional industry, we find that the negative impact is generated due to IPR protection level changes brought by the inhibition effect is greater than the incentive effect.

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Research on Intellectual Property Related Issues in the Transformation of Scientific and Technological Achievements——Based on the Multiple Case Study of Chinese Academy of Sciences

Ma Feng, Pan Chengli, Feng Feng

2021, 33 (3): 138-145.

Abstract ( 198 )

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Taking the Chinese Academy of Sciences as an example, this paper analyzes the main models of the transformation of scientific and technological achievements and technology transfer (the implementation and transfer of intellectual property rights of scientific and technological achievements) in China through the investigation and study of the transfer of scientific and technological achievements of the scientific research institutes affiliated to the Chinese Academy of Sciences. And based on our long-term work practice, we point out the main problems of intellectual property rights in the transformation of scientific and technological achievements. In order to break through the scientific dilemma, optimize the distribution mechanism, and promote innovation-driven development, the government needs to further improve the awareness of intellectual property protection in the transformation of scientific and technological achievements, improve the intellectual property laws and regulations, actively promote the judicial management system of intellectual property protection and reform the trial system.

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A Horizontal Trust Transfer Mechanism of the Improvment of New Customers' Cross Platform Purchase Behavior on Customer Retention

Wang Qian, Rong Zhe, Xie Kang

2021, 33 (3): 146-158.

Abstract ( 233 )

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Online and offline channels are complementary, and they positively affect new customer retention. As for online platforms, does the competition among them have a positive or negative impact on new customer retention? To this end, this paper constructs the SMC model and random-effects model, conducts empirical analysis based on a firm's new customers' multi-platform channel transaction data. The results show that, unlike competition among homogenous offline channels that reduce new customer retention, cross-platform purchase increases the overall retention rate and will not cause customers to churn from the new platform channel. Furthermore, as a mediator, customer retention increases new customers' value. After cross-platform purchasing, the retention rate of light customers increases more than that of heavy customers, while the latter could produce more value for the firm. Based on the empirical findings, this study puts forward the horizontal trust transfer to explain the underlining mechanism. From the perspective of the asymmetric structure of the horizontal trust transfer efficiency between online and offline context, it theorizes the general phenomenon that firms set up homogeneous stores on multiple online platforms. This study transforms the research on customer retention strategy from a static perspective to a dynamic one, and it promotes the research on the liquidity nature of online customers across platform channels.

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The Effect of Online Shopping Festival Promotion Strategies on Consumer Participation Intention and the Moderating Role of Personal Characteristics

Chen Chuanhong, Li Xueyan

2021, 33 (3): 159-169.

Abstract ( 713 )

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Online shopping festivals are characterized by gathering promotions to create a consumer shopping atmosphere. Exploring how environmental stimuli affects consumers' participation intention is beneficial for e-commerce platforms and merchants to improve their online shopping festival marketing strategies. This study conceptualizes the stimuli of online shopping festivals from four dimensions:perceived temptation of sales promotion, categories richness of promotion, fun of sales activities and perceived contagiousness of mass participation. Based on the Stimulus-Organism-Response (S-O-R) theory, this study constructs an influencing factors model of consumer participation intention in online shopping festival based on a 495-questionnaire survey of young people, and uses structural equation model for hypotheses testing. The results show that perceived temptation of sales promotion, perceived categories richness of promotion, perceived contagiousness of mass participation and perceived fun of sales activities positively affect participation intention, and consumers' gender, age and monthly income play a moderator role in the impact of environmental stimuli on participation intention.

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Impact of After-sales Service on Differentiated Brands Competing Manufacturer's Encroachment

Jin Liang, Wu Qian

2021, 33 (3): 170-181.

Abstract ( 181 )

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This paper analyzes the impact of after-sales service on differentiated brands competing manufacturer's encroachment in a supply chain that consists of an incumbent manufacturer, an entrant manufacturer and a retailer, with the retailer supplied by two manufacturers with differentiated brands:a good brand and an average brand. Based on the incumbent manufacturer's leadership, with brand differentiation taken into consideration, two Stackelberg game models are constructed. The results show that, the entrant manufacturer has access to markets under certain conditions. Furthermore, the after-sales service is favorable for the incumbent manufacturer and the retailer under certain conditions, but not for the entrant manufacturer. Faced with the entrant manufacturer's entry, the incumbent manufacturer's power advantage may not lead to higher optimal wholesale price and a higher after-sales service level. This implies that the differentiated brands competing manufacturer's encroachment decreases the profit of the incumbent manufacturer, and increases the profit of the retailer and the whole supply chain.

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The Mechanism of Leader Coaching Behavior on Employee Creative Problem-solving: A Model of the Joint Mediation

Tu Xingyong, Peng Yaya, Lin Zhenglu, Zhao Ziwei

2021, 33 (3): 182-191.

Abstract ( 282 )

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As a key element, creative problem-solving not only helps the organization to get competitive advantage and important prerequisite, but also promotes employees work performance. Creative problem-solving becomes one of management themes. Although existing researches suggest leader coaching behavior can help employee creative problem-solving, the effect of leader coaching behavior on employee creative problem-solving does not get fully explained. Empirical studies show mixed results and this relationship has remained ambiguous and contested. This paper constructs a chain mediation model based on the theory of self-regulation in order to fill the existing research gap. The results show that:(1) leader coaching behavior is positively related to employee creative problem-solving; (2) psychological safety and critical thinking mediate the relationship between leader coaching behavior and creative problem-solving. The research indicates that the mediation can better explain the mechanism of leader coaching behavior on creative problem-solving, which not only enriches and extends the scope of related leadership, but also provides a beneficial enlightenment to the employee innovation management practice.

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The Double-edged Sword Effect of Employee Narcissism on Knowledge Hiding

Yang Chen, Zhang Lu

2021, 33 (3): 192-201.

Abstract ( 447 )

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Narcissism is one of the research focuses in social psychology and organization behavior. Although previous researches have begun to explore the effects of the narcissism, the existing knowledge regarding the effects of the employee narcissism on knowledge hiding remains incomplete in the context of Chinese guanxi culture. Based on 242 employee-colleagues, this study examines how narcissism influences employee knowledge hiding by exploring the moderating role of the guanxi human resource management practices. The results indicate that when guanxi human resource management practices are high, narcissism is positively related to employee knowledge hiding, whereas guanxi human resource management practices are low and the relationship is negative. Employee knowledge hiding, in turn, is positively related to colleague's reciprocal knowledge hiding. The indirect effects of narcissism on colleague's reciprocal knowledge hiding via employee knowledge hiding are moderated by guanxi human resource management practices such that these indirect associations are positive when guanxi human resource management practices are high but negative when guanxi human resource management practices are low.

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The Influence of Humble Leadership on Employee Spanning Behavior: The Role of Organization-based Self-esteem and Environmental Uncertainty

Zhang Zheng

2021, 33 (3): 202-212.

Abstract ( 257 )

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In this study, we try to examine the effect of humble leadership on employee spanning behavior, and the mediating role of organization-based self-esteem, as well as the moderating role of environmental uncertainty between humble leadership and employee spanning behavior in the Chinese organization context. Based on the self-concept theory, this study constructs a moderated mediation model, which integrates relationships mentioned above. Data are collected from 276 employees from 4 technology companies through 2 wave surveys. Hierarchical regression modeling is used to test the hypotheses we proposed. In line with our hypotheses, regression results show that:(1) humble leadership has a significant positive influence on employee spanning behavior; (2) organization-based self-esteem partially mediates the relationship between humble leadership and employee spanning behavior; (3) environmental uncertainty significantly moderates the relationship between humble leadership and employee spanning behavior, namely the influence of humble leadership on employee spanning behavior will be stronger when environmental uncertainty is high; (4) environmental uncertainty moderates the mediating relationship between humble leadership and employee spanning behavior via organization-based self-esteem, such that the mediating effect will be strengthened when environmental uncertainty is high.

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Political Connection and Firm Performance: Comparative Research Based on the Interpersonal and Interorganizational Level

Wang Longwei, Wang Wenjun, Wang Li

2021, 33 (3): 213-224.

Abstract ( 286 )

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As an important non-market strategy, political connection is crucial to firms' survival and development. However, the existing researches have not yet formed a unified conclusion of the relationship between political connections and firm performance. To address this question, drawing on the strategy tripod perspective, the research divides the political connections into interpersonal and interorganizational levels, and then explores the different impacts from two different levels of political connections on firm performance. The research also examines the moderating effect of industrial factor (competitive intensity) and institutional factor (dysfunctional competition) on the main effect. Results show that, compared to the interpersonal level of political connections, the interorganizational level has a stronger positive effect on firm performance. Also, the research examines the different moderating effect of environmental factors on the relationship between two level political connections and performance:interorganizational political connections are more beneficial when the competitive intensity is high and the dysfunctional competition is low, whereas interpersonal political connections bring greater performance when it is less competitive and the dysfunctional competition is high.

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Usefulness of Burning Money Strategy in the Initial Phase of Sharing Economy Platforms: An Empirical Study

Wang Nianxin, Zhou Chunyang, Wan Xing, Ge Shilun

2021, 33 (3): 225-232.

Abstract ( 230 )

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In order to quickly build a platform ecosystem, the sharing economy platform often adopts the “burning money” strategy to attract both supply and demand. Whether burning money strategy is useful and how to exert its maximum effect is a hot topic to be studied. In order to explore the usefulness of the strategy of burning money in the initial stage of sharing economy platforms, this paper takes the sharing economy platform to construct the initial burning money strategy as the research object, and constructs the research model of the relationship between burning money, burning objects, APP score and user growth rate. The structural equation model is used to analyze and model the data of 120 domestic sharing economy platforms. The research results show that burning money strategy can directly increase the user growth rate in the initial stage of the sharing economy platform; burning money strategy can indirectly increase the user growth rate in the initial stage of the sharing economy platform by affecting the APP score; burning money strategy can increase the sharing economy platform by attracting suppliers, but cannot increase the user growth rate in the initial stage of the sharing economy platform by attracting demands. The above research results can provide practical guidance for the implementation of burning economy strategy in the initial stage of the construction of the sharing economy platform.

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Scope, Speed and Rhythm: The Influence of Executive Overconfidence on the Internationalization Process

Chen Weihong, Zhong Xi, Lan Hailin, Song Tiebo

2021, 33 (3): 233-243.

Abstract ( 394 )

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The decision-making mechanism of corporate internationalization process has already drawn the attention of researchers, but but so far, few of them pay attention to the influence of executive overconfidence on the scope, speed, and rhythm of corporate internationalization. Based on the upper echelons theory and the data of Chinese listed manufacturing companies from 2007 to 2016, this research analyzes the decision-making mechanism of the corporate internationalization scope, speed, and rhythm from the perspective of executive overconfidence. The result shows that (1) Enterprises with overconfident executives have a broader scope of internationalization, a faster speed of internationalization, and a more irregular rhythm of internationalization than firms whose executives are not overconfident. (2) Compared to non-state enterprises, the positive effects of executive overconfidence on internationalization speed and irregular international expansion patterns will be weakened, but the positive effects of executive overconfidence on the scope of internationalization will be enhanced in state-owned enterprises. (3) Technological resources enhance the positive effect of executive overconfidence on internationalization scope, internationalization speed, and irregular internationalization expansion pattern.

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Tax Incentives, Fixed Asset Investment and Labor Income Share——Evidence from the Fixed Assets Accelerated Depreciation Reform in 2014

Xu Dandan, Zhao Tianhui, Xu Jingxuan

2021, 33 (3): 244-254.

Abstract ( 338 )

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Labor income share is an important indicator of labor welfare and Macroeconomic development. The labor income share in China has a U-shaped pattern; it declined between 1995 and 2008,then began to increase. This is the inverse of the GDP growth pattern. Therefore, it is important to investigate the underlying determinants of labor income share. At present, most of the researches focus on the four factors that affect labor income share:the biased technological progress and incomplete competition, the change of economic structure and the change of negotiation ability of production factors caused by globalization. In the context of a new round of global industrial revolution, the research on the impact of fixed asset investment on labor income share is of great significance for China's economic and social development. However, the research on this issue is relatively scarce in China. In 2014, China began to implement the fixed assets acceleration policy for pilot industries. This tax incentive policy can reduce the tax burden of enterprises and increase the scale of fixed asset investment. In this paper, we use the accelerated depreciation policy of fixed assets in 2014 as exogenous shock and the micro data of China's A-share listed companies from 2007 to 2019 to identify the causal relationship between fixed asset investment and labor income share. The study finds that the policy significantly raises the labor income share of listed companies. Further analysis shows that the policy significantly increases the labor income share of private enterprises, but has no significant effect on state-owned enterprises; the policy significantly increases the labor income share of firms in the eastern region, but has no significant effect on firms in the western region; the policy significantly increases the labor income share of ordinary employees, but has no significant effect on the labor income share of senior managers; the policy significantly reduces the capital income share, but increases the labor income share of income of subjects other than capital and labor. In addition, consistent with the theoretical analysis, the labor creation effect brought by fixed asset investment is greater than the labor substitution effect, and the superimposed comprehensive effect significantly improves the labor income of enterprises, and then increases the share of labor income. To sum up, this paper verifies the relationship between fixed asset investment and labor income share from the micro perspective, and extends the research on the effect of tax incentive policy to the level of labor income share of enterprises, so as to provide reference for further reform in the future.

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Cash Dividend Distribution and Its Peer Effect in the Social Network

Feng Gejian, Wang Jianqiong

2021, 33 (3): 255-268.

Abstract ( 322 )

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Based on a sample of listed companies in China during the period 2011 to 2015, this paper empirically tests whether the cash dividend policy has social network peer effect, and examines the impact of corporate social network characteristics on the peer effect strength and cash dividend distribution. The results show that the willingness and intensity of cash dividend distribution will be positively affected by the peer firms' dividend distribution behavior in the social network, and corporate cash dividend policy has social network peer effect. After excluding the regional peer effect and industry peer effect, social network peer effect of cash dividend policy still exists significantly. The network centrality of enterprise is negatively related to the peer difference of cash dividend distribution, and positively related to the peer effect strength of cash dividend policy. The characteristics of corporate social network have no obvious effect on cash dividend distribution willingness, but have a significant positive impact on cash dividend distribution intensity. The centrality of social network can positively affect cash dividend per share and cash dividend scale. This paper enriches the research scope of the peer effect of corporate economic activity, and provides incremental empirical evidence for the field of social network research and dividend policy research.

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Are Honest Tax-paying Enterprises More Likely to Obtain Commercial Credit Financing?

Geng Yanli, Lu Guihua, Li Xuan

2021, 33 (3): 269-281.

Abstract ( 344 )

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The State Administration of Taxation (SAT) carried out tax credit rating activities nationwide in 2014, and has since then published a list of honest tax-paying companies every year. Those included in the list are not only supported by preferential tax policies, but also better known for this significant honor. Does honest tax paying play a role in obtaining commercial credit financing? Based on the tax credit rating data of listed companies from 2014 to 2016, we test whether tax credit enterprises are more likely to obtain commercial credit financing. The results of this paper show that honest tax-paying companies are more likely to obtain commercial credit financing. Further research shows that the effect of tax credit on commercial credit financing is more significant in state-owned enterprises and in central and western regions. The research of this paper shows that tax credit plays an important in obtaining commercial credit financing.

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An Empirical Study on Low-carbon and Multimodal Transport in the Northeast China

Li Xiaodong, Kuang Haibo, Zhao Yuzhe, Liu Tianshou, Wu Huahua

2021, 33 (3): 282-291.

Abstract ( 275 )

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With the implementation of the “Belt & Road” initiative and CR express, the container transportation has blossomed in Northeast China, but there is still high carbon emissions. This paper summarizes the status quo of multimodal transport and low-carbon transport, and selects the container transport in the three northeastern provinces for empirical research. Firstly, the entropy weight-TOPSIS method is used to find the demand of the destination city. Then, by constructing the lowest cost multi-modal container optimization model, five related scenarios of rail transport, sea transport and port expansion are designed. Also, we use sensitivity analysis to study the impact of road unit price and carbon emissions on the whole. The results show that transshipment of seaborne and expanding the proportion of the railway is the key to low-carbon economy. The impact of handling costs on total costs is much greater than the impact of the corresponding carbon emissions; Ports in the same hinterland and adjacent areas need port consolidation to achieve port synergy. The railway transportation enterprises need to adopt a variety of price transport products to improve their competitiveness. Even if the intensity of road carbon emission is reduced by 50%, the single mode of transportation is still not as good as multimodal transport.

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Research on Pricing Strategy of Two-sided Logistics Platform with Considering the Intra-group Network Externality of Service Providers

Ding Xuefeng, Chen Qiancheng

2021, 33 (3): 292-306.

Abstract ( 297 )

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This paper takes two-sided logistics platform as the research object, which provides logistics service matching for the supply and demand of logistics service. We establish the pricing model for the platform toward buyers and sellers, and then give judging conditions of different pricing strategies for platform influenced by network externalities. We also analyze the influence of intra-group network externalities of logistics service providers on platform pricing strategies, the participation in logistics service consumers or providers, and the platform's profit. The research shows that charging, for-free or subsidy strategies should be selectively adopted the toward logistics service consumers and providers according to different quantitative and size relations between each parameter of network externalities. The negative and positive effects of intra-group network externality on pricing to logistics service providers are different due to the magnitude of the relationship between the two types of inter-group network externalities; while they only have a negative impact on two-sided platform users' willingness to participate and platform profits. But its strength is relevant to the sum of inter-group network externalities, the greater sum of them, the lower negative impact of intra-group network externalities. Finally, we recommend that the platform should take measures to stimulate logistics service consumers and providers to create more utility for each other; and at the same time, stimulate more users to trade through the platform, especially the service consumers, which could reduce the negative impact of intra-group network externalities within the logistics service providers.

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Research on the Factors that Influence the Labor Structure of the Manufacturing Industry in the Context of Artificial Intelligence——Taking the Development of Industrial Robots as an Example

Li Shuqin, Wang Haochen, Wang Shouyang

2021, 33 (3): 307-314.

Abstract ( 386 )

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Artificial intelligence is being used in more and more industries. One of the important applications in manufacturing is industrial robots. There is much debate about the effect of industrial robot use on labor force with different skill structures. In this study, labor force in Chinese manufacturing is divided into three categories according to the education level:high-, medium- and low-skill, and the influence of the annual sales of industrial robots on the employment scale of each type of labor force is studied. The results show that with the increasing use of industrial robots, the employment scale of high-skilled labor force increases, resulting in the “compensation effect”, while the employment scale of low-skilled labor force decreases, resulting in the “substitution effect”, while the medium-skilled labor force is not significantly affected. The results provide evidence in China's manufacturing industry for research on the relationship between industrial robots and labor employment based on SBTC theory, and reflect the particularity of China. The implications summarized in this paper include providing appropriate knowledge and skills training for different labor forces, appropriately delaying the retirement age of high-skilled labor forces, and expanding the development space to attract more people, especially high-skilled labor forces, to work in manufacturing industry.

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Tripartite Evolutionary Simulation Analysis of Food Quality Supervision under Public Participation in the New Media Environment

Sun Shuhui, Zhu Lilong

2021, 33 (3): 315-326.

Abstract ( 187 )

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Food safety bears heavily on people's health, market stability and economic development. This paper discusses the behavioral strategies of government supervisors, food producers and consumers in the new media environment. By constructing a tripartite evolutionary game model, this paper analyzes the stability strategy combination among game subjects. The study indicates that:Firstly, the objectivity or accuracy of media coverage has an important influence on how gamers would select their strategies. The more rational a new media environment is, the more positive incentive role it will play in food quality supervision. Secondly, the evolutionary trend of the strategy selection by gamers also depends on their sensitivity to the media coverage, namely, the more sensitive they are, the more inclined they are to conduct strict supervision or produce high-quality food. Thirdly, the supervision cost of the government and the amount of penalties imposed on the enterprises are also important factors that influence the strategy selection of gamers. Finally, this paper uses Matlab 2017 to simulate the evolution trajectory of the game tripartite strategy selection, and puts forward corresponding countermeasures and suggestions.

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The Strength of Complementary Relationship Matching Enterprise Innovation Profit Strategy Affects the Cooperative Innovation Performance——An Exploratory Case Study Based on the Pharmaceutical Industrys

Sun Yaowu, Xiong Siyu

2021, 33 (3): 327-338.

Abstract ( 177 )

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The paper conducts case studies based on 5 groups of pharmaceutical manufacturing enterprises, exploring the mechanism of how the match between the strength of complementary relationship and enterprise innovation profit strategy affects the cooperative innovation performance. It deeply depicts the strength of complementary relationship and cooperative innovation performance, and the innovation profit strategy is proposed and defined as incentive type, hybrid type and conservative type. It is found that strong complementary relation usually matches the incentive and hybrid innovation profit strategy, while weak complementary relation matches the conservative innovation profit strategy. Different matching relationships significantly affect cooperative innovation performance, and have their own paths of action. The research deepens the analysis of “relationship-performance” of social network theory, enriches the background connotation of the “PFI” framework, and has important implications for enterprise innovation decision-making and strategy implementation in the context of openness and cooperation.

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The Influence of Dynamic Capability on the Path of Value Chain Reconstruction in the Era of Big Data——A Case Study Based on Gree Electric

Zhang Zhengang, Xu Yamin, Luo Taiye

2021, 33 (3): 339-352.

Abstract ( 444 )

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In the era of big data, based on the dynamic capability theory and the value chain reconstruction theory, we adopt a single case study method, select Gree Electric as the research object, and discuss the influence of dynamic capability on the company's value chain reconstruction path. Based on the four dimensions of dynamic capability in the era of big data extracted from literature review, combined with the single case study, it is found that different dimensions of dynamic capability show different impact on the value creation activities in the internal and external value chains of enterprise, and lead to the incremental and destructive reconstruction of the value chain. Based on the logic of “motivation-behavior-result”, this paper builds a value chain reconstruction path in the era of big data, expands the study of value chain reconstruction under the condition of profit maximization and creating shared value (CSV), which reveals the uniqueness of big data era. What's more, this paper also provides reference and enlightenment for other companies to cultivate dynamic capability and reconstruct value chain in the era of big data.

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