HIGHLIGHTS

Social Capital, Financial Literacy and Farmers' Entrepreneurial Financing Behavior

CAO Li1LUO Jianchao2

·3·

(1.SchoolofFinance,NanjingUniversityofFinanceandEconomics,Nanjing210023，China；2.SchoolofEconomicsandManagement,NorthwestA&FUniversity,Yangling712100，China)

Abstract:Based on the survey data of 1263 farmers in Eastern and Western China, this paper uses sample selection model to analyze the impact of social capital and financial literacy on farmers' entrepreneurial financing behavior. The results show that the increase of social capital and financial literacy can enhance farmers' entrepreneurial financing willingness and choose formal finance; farmers who have close contacts with relatives and friends are more willing to participate in entrepreneurial financing, while their family members or relatives have village cadres or bank or government department staffs are more willing to participate in entrepreneurial financing, and tend to choose formal finance. Both objective financial literacy and subjective financial literacy can enhance farmers' entrepreneurial financing willingness and promote the choice of formal financing methods; social capital and financial literacy have a certain substitution effect on farmers' choice of formal finance, and the substitution effect of objective financial literacy is stronger. Therefore, this paper proposes that farmers should be guided to actively participate in village affairs, improve rural entrepreneurship service system; vigorously popularize financial knowledge, strengthen financial basic education and skills training; continue to promote the construction of rural credit system, and properly enhance the scale of rural entrepreneurship financing.

Key words:Social Capital; Financial Literacy; Farmers' Entrepreneurship; Financing Willingness; Financing Method

Does Venture Capital Affect the IPO Audit Fees? Based on the Mediating
Effect of Earning Management

LIU Qi WANG Congcong

·46·

(SchoolofAccounting,ZhongnanUniversityofEconomicsandLaw,Wuhan430073,China)

Abstract:Taking the companies which are listed on GEM from 2009 to 2016 in China as samples, this paper studies the impact of venture capital on IPO audit fees. The main results are as follows: the VC-backed companies charge higher IPO audit fees than non VC-backed companies. Moreover, the results still hold after considering the endogenous problems that may arise from sample selection; The higher of venture capital holding and reputation, the higher IPO audit fees; and whether venture capital is a joint investment has no significant impact on IPO audit fees; In the impact of venture capital on IPO audit fees process, earning management plays a part of mediating effect. The conclusions of this paper not only expands the relevant research on venture capital investment and audit market, but also verify that the grand standing of venture capital has played a significant role in audit market.

Key words:Venture Capital; IPO Audit Fees; Earning Management

Fiscal Expenditure Competition, Urban Investment Debt and Urban Economic Growth：From the
Perspective of Fiscal Expenditure Pressure

XIAO Ye

·64·

(SchoolofPublicEconomicsandAdministration,ShanghaiUniversityofFinanceandEconomics,Shanghai200433,China)

Abstract:Based on panel data of 286 prefecture-level cities in China from 2008 to 2016,this paper empirically analyzes the impact of fiscal expenditure competition on urban economic growth using panel quantile model. The result shows that: Fiscal expenditure competition significantly promoted urban economic growth, and this promotion effect is more obvious in developed regions; The issuance of urban investment bonds is an important transmission channel for fiscal expenditure competition to promote urban economic growth; The role of fiscal expenditure competition in megacities is more obvious than that of large cities; non-social expenditure competition is more effective in promoting economic growth than social expenditure competition. Officials' changes have had an important regulatory effect on the impact of fiscal expenditure competition on urban economic growth. Among them, cities with changes in municipal party committees and the municipal party committees with mayor changes in the same time have weakened the role of fiscal expenditure competition in promoting economic growth, and there is no effect in the city of changes in the mayor.

Key words:Fiscal Expenditure Competition; Urban Investment Debt; Economic Growth; Tax Competition; Panel Quantile Model

The Effect of Investor's Sentiment on Financial Restatement:
From the Perspective of Behavioral Finance

GAO Zengliang ZHANG Junrui

·85·

(SchoolofManagement,Xi'anJiaotongUniversity，Xi'an710049，China)

Abstract:Based on the data of China's A share listed companies from 2008 to 2016, this article investigates the effect of investor's sentiment on the financial restatement from the perspective of behavioral finance. The result shows that investor's sentiment increases the probability of financial restatements. In the further sub-sample tests, we find that the positive correlation between investor's sentiment and financial restatement behavior of listed companies is more pronounced in the following subsamples: non-state-owned enterprises, lower shareholding ratio of the largest shareholder, the companies that chairman of the board of directors do not serve as CEO, lower proportion of institutional investors, and companies audited by non-big 10 audit firms. The results of this article provide us new evidence on the relation between investor's sentiment and financial restatement, as well as providing practical implications for the regulatory authorities.

Key words:Behavioral Finance; Investor's Sentiment; Financial Restatement; Sub-sample Tests

Does the Housing Credit Weaken the Housing Wealth Effects? Retest of
Housing Wealth Effects Based on CFPS Data

WANG Yiqiu1GUAN Ningning2

·94·

(CollegeofFinance，NanjingAgriculturalUniversity,Nanjing210095,China)

Abstract:The role of housing wealth in promoting household consumption has been studied in existing literatures. On the background of booming housing market and housing credit market, it has significance to discuss whether the housing wealth effects have been weakened by the economic pressure from housing loan repayment. It is helpful to stimulate national consumer demand in the current high-quality economic development stage in China. Based on the China Family Panel Studies (CFPS) data of 2014 and 2016, this paper uses the fixed effect model to retest the wealth effects of real estate by introducing the relevant variables of the housing purchase methods. The results show that the housing wealth effects are true extensively. Whether or not one own real estate, how many real estates one have, and values of real estates have positive effects on household consumption. However,it is not accurate when analysing the effects of housing effects if not considering mortgage. The results show that budget constraints of household will be relaxed if one loan, and the amount of pending payment have no significant inhibitory effects on the housing wealth effects, although the housing slave effects have some weakening of the housing wealth effects. In a word, it is not enough to offset the effects of housing wealth on the household consumption.

Key words:Housing Wealth; Family Consumption; Wealth Effects; Housing Slave Effects

A Review of the Theory and Application of Position in Global Value Chain

NI Hongfu

·105·

(InstituteofEconomics,ChineseAcademyofSocialSciences,Beijing100836,China)

Abstract:The position of a country and its sectors in the global value chain affects its ability to coordinate and control the value chain, and then determines its ability to acquire value. In recent years, the theory and application of global value chain position have attracted widespread attention. However, there are some differences between these measurement methods, their results and the position of industrial chain as we understand it in common sense. Some concepts are confusing and need further clarification and reflection. This paper systematically reviews, rethinks and prospects the theory of position measurement of global value chain. Firstly, this paper systematically reviews the measurement methods of the position of global value chains, focusing on the comprehensive framework of Muradov (2016). Secondly, the concepts of upstream degree and downstream degree are discriminated, and the similarities and differences between the position measured by input-output model and that of real economic production chain, as well as the paradox of upstream degree and downstream degree are further discussed. Finally, the application and future research of position measurement index are prospected.

Key words:Global Value Chain; Input-Output Model; Upstream Degree; Position in Global Value Chain；Industry Competitiveness

Party Organization Embedding and Corporate Green Transformation

YU Lianchao ZHANG Weiguo BI Qian

·128·

(SchoolofEconomicsandManagement,SouthwestUniversity,Chongqing400715,China)

Abstract:Based on the empirical data of China's Shanghai and Shenzhen A-share industrial listed companies from 2006 to 2016, this paper empirically tests the impact of Party organization embedding on corporate green transformation. The result shows that: Party organization embedding effectively promotes corporate green transformation, and the Party organization embedded in the board of directors, the board of supervisors, and the management significantly improves the level of corporate green transformation; after the implementation of the new “Environmental Protection Law”, the promotion effect of Party organization embedding on corporate green transformation is more significant. After extensive testing and analysis, we find that the promotion effect mainly reflects in state-owned enterprises, low financing constraint enterprises, and heavily polluting enterprises. After exploring the channels, the result shows that the Party organization embedding can promote corporate green transformation by shaping the values of green transformation, strengthening environmental policy compliance, and balancing agency conflicts.

Key words:Party Organization Embedding; Corporate Green Transformation; Environmental Protection Law; Property Rights; Financing Constraints; Industry Characteristics