Journal of Economics, Finance and Administrative Science最新文献

{"title":"Financial Development, Environmental Regulations and Green Economic Transition","authors":"Zhang Jianpeng, C. Shiyi","doi":"10.16538/J.CNKI.JFE.20210918.301","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210918.301","url":null,"abstract":"With the global deterioration of ecology and the widening of inequality, achieving green, inclusive and sustainable economic growth has received worldwide recognition. The essence of green transition is the revolution of development mode, which requires a large amount of environmental investment, including enterprise pollution control and green RD on the other hand, the supply capacity of green funds by the financial sector also needs to be improved, so as to reduce the environmental financing constraints faced by enterprises. Therefore, financial development and environmental regulations can produce synergy at both ends of supply and demand of environmental investment and have a coordination effect on green economic transition. This paper exploits a comprehend dataset on the information of industrial production, pollution emission and green innovation of 284 cities in China from 2004 to 2015 to test the coordination effect. In recent years, the innovation and development of China’s financial system are reflected in local small financial institutions, in which the development of city commercial banks (CCB) has become an important symbol. With information advantages, more flexible supervision and diversified ownership structure, CCB can reduce information asymmetry in the lending process and alleviate the financing constraints faced by enterprises. Measuring the urban financial development based on the increase in the branches of CCB, this paper finds that local financial development can significantly reduce the industrial SO2 emission, the main pollutant in cities, in coordination with environmental regulations. The mechanism analysis shows that financial development and environmental regulations can synergistically promote industrial pollution control and green technological innovation, which reduces the emission intensity of industrial pollution and promotes the rise of green industry, thus promoting industrial green transition, without significant reduction of production. The conclusions remain stable after a series of endogenous and robustness tests. Heterogeneity analysis also reveals that environmental information asymmetry, the shortage of market intermediary service agency and the weak of the ability of technology commercialization will impair the coordination effect. The contributions of this paper are mainly reflected in two aspects: First, it reveals the factor of financial development in affecting green economic transition, which enriches the existing literature on financing constraints, financial development and economic green transition, and also provides useful policy enlightenment for the development of green economy. It is necessary to not only strictly implement environmental regulations, but also pay attention to the financial support and guidance role of the financial sector, so as to promote enterprises’ pollution control and green R&D innovation. Second, to improve the supply capacity of green funds, China needs to not only ","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"8 1","pages":"78-93"},"PeriodicalIF":2.4,"publicationDate":"2021-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83393175","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Sociability and Wage Earnings of Rural Migrant Workers","authors":"Chen Boou, Zhang Jin-hua","doi":"10.16538/J.CNKI.JFE.20210813.402","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210813.402","url":null,"abstract":"In recent years, the total number of rural migrant workers has been growing. By the end of 2019, this number has reached 290.8 million. However, there is a big gap between rural migrant workers and urban workers in terms of employment, income, public services and social security until now, especially wage earnings, which has received much attention. Many studies fully explore the determinants of the wage earnings of rural migrant workers from the perspectives of education, vocational training, household registration policy, city size, social capital and social networks, while few studies focus on the impact of sociability.Based on the data from the Chinese Family Panel Studies（CFPS）in 2010 and 2014, this paper constructs an indicator to evaluate the sociability of workers from the two sub-dimensions of language expression and interpersonal relationship, and explores the effect of sociability on the wage earnings of rural migrant workers. Then, it uses the regression of one-period lagged variable and the instrumental variable method to deal with the possible endogeneity. After that, the results are still robust.The results indicate that: （1）Sociability has a significant positive effect on the wage earnings of rural migrant workers, and obviously there are gender and intergenerational differences in the impact of two sub-indicators.（2）There is a significant “migration effect” that the impact of sociability on wages would be weaker while the migration distance is increasing.（3）With the increase of wage earnings quantile, the impact of sociability becomes more significant.（4）In terms of mechanism, sociability mainly affects the wage earnings of rural migrant workers through four channels: social capital effect, career development effect, labor contract effect and information advantage effect. It is recommended that the relevant policies on the development of rural human capital should not only focus on the traditional human capital, such as education and training, but also strengthen the cultivation of sociability and other non-cognitive abilities, especially rural children.The marginal contributions of this research are that: （1）The perspective is more focused. This paper only investigates the impact of sociability（not non-cognitive abilities）, while focusing on rural migrant workers.（2）Considering the characteristics of migration, this paper examines the “migration effect” of sociability returns.（3）In terms of mechanism, this paper puts forward the labor contract effect and the information advantage effect, which supplements the related research.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"128 1","pages":"124-138"},"PeriodicalIF":2.4,"publicationDate":"2021-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80402005","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How to Transform Liability of Foreignness into Asset of Foreignness under the “Belt and Road” Initiative? A Case Study from the Perspective of Social Network","authors":"Z. Jigao, Long Muchen, Zhu Jiaxin","doi":"10.16538/J.CNKI.JFE.20210825.103","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210825.103","url":null,"abstract":"Under the “Belt and Road” Initiative （BRI）, Chinese companies’ “go-global” has gradually become an important strategy for industrial upgrading. However, many “go-global” companies have met the liability of foreignness （LOF）, including legitimacy problems and the threat of exit. How to overcome LOF has become an urgent problem for the overseas subsidiaries of “go-global” companies.We illustrate our arguments through a single case of Chinese multinational subsidiary Taiwenlong Cement Co., Ltd. in Cambodia. This paper studies from the perspective of social network analysis to identify the source of LOF, and discusses the mode of transforming LOF into the asset of foreignness （AOF）. The case company, Taiwenlong Cement Co., Ltd., is a joint venture between a Chinese company and a host-country company. As a representative of the successful transformation of LOF into AOF, this project experienced both the “honeymoon period” and the “setback period” in its construction and operation process and finally gained a foothold in Cambodia after various attempts.Based on the case analysis, we find that under the BRI, LOF of foreign subsidiaries of Chinese companies in countries along the BRI shows dynamic changes. This paper has several contributions: Firstly, under the BRI, the government-enterprise relationship and industrial chain relationship of the host country are important sources of LOF. Secondly, with the development of Chinese companies’ “go global”, the focus of overcoming LOF has gradually shifted from the national level to the industrial level. The key to the transformation of AOF and LOF lies in matching the adequate industry chain network. Finally, the home government support, technology transfer and industrial agglomeration can promote the transformation of LOF into AOF in the industry chain. Therefore, we construct three transformation routes: （1）Multi-agent centralization mode, through which foreigners can use different types of network resources including not only the government, shareholders, industrial partners in the home country, but also the subjects of local network in the host country, to obtain higher network status in a situation where foreigners can afford a high level of LOF.（2）Foreignness centralization mode, in which foreigners can establish a self-centered industrial chain network, occupying an intermediary role in the flows of information and resources in the case that they can dominate the allocation of network resources.（3）Industrial centralization mode, in which foreign companies can build network with a few industrial partners through the scale advantage of industrial clusters under the case of relatively scarce network resources. The conclusions of this paper have positive implications for the promotion of high-quality development of BRI and Chinese private companies to “go global”.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"20 1","pages":"139-153"},"PeriodicalIF":2.4,"publicationDate":"2021-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87784054","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Industry-University-Research Cooperation and the Solution to the Low-end Dilemma of GVC：From the Perspective of Export DVAR","authors":"Jin Hongfei, Chen Qiuyu","doi":"10.16538/J.CNKI.JFE.20210812.101","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210812.101","url":null,"abstract":"In the 1990s, China quickly integrated into the global industrial chain and the global value chain (GVC) by virtue of its demographic dividend, and became the “workshop of the world”. In fact, due to the lack of core technologies, China is still at the low-end of GVC, with low manufacturing added value. At present, getting rid of the low-end dilemma and realizing GVC upgrading are of vital importance to the transformation and upgrading of China’s economy. As an important strategic way for enterprises to enhance their technological innovation capabilities, industry-university-research cooperation (IURC) may be an effective path for China to improve the value-added acquisition capacity of manufacturing industry.To this end, this paper analyzes the impact and mechanism of IURC on the domestic value-added ratio (DVAR) of Chinese manufacturing enterprises’ exports by using the matching data of China’s industrial enterprises, customs trade and patent application from 2000 to 2013, in which export DVAR is used to reflect the position of enterprises in GVC, and the level of IURC is measured by the joint patent applications.The research results show that IURC significantly improves export DVAR. The results of PSM analysis, instrument variable method and other robustness tests all back up the reliability of the empirical results. The mechanism analysis shows that the value-added efficiency of intermediate input and the proportion of processing trade both play an intermediary role in the process of IURC promoting export DVAR. From the perspective of regional division, IURC has a significant impact on export DVAR in eastern China. Based on different ownership, IURC can increase the DVAR of private enterprises, but its impact on the DVAR of state-owned enterprises and foreign enterprises is not obvious. From the angle of industry factor intensity, IURC has a positive impact on skill-intensive enterprises and labor-intensive enterprises. Also, the IURC of both invention patents and utility patents has a positive impact on export DVAR.The possible contribution of this paper may exist in the following aspects: Firstly, based on the analytical framework of Kee and Tang (2016), it introduces IURC into the theoretical model by constructing the incomplete substitution between intermediate inputs. Secondly, it provides new empirical evidence on the impact of IURC on enterprises’ GVC upgrading, and finds that IURC contributes to the increase of export DVAR. Thirdly, this paper suggests that attention should be paid to the impact of IURC on heterogeneous enterprises in the process of promoting the cooperation.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"1 1","pages":"94-108"},"PeriodicalIF":2.4,"publicationDate":"2021-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90294454","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do MCAP and P/E Ratios Have an Impact on the EPS of High and Low Beta (β) Firms? An Analysis of Covariance on Select Companies!","authors":"E. Rengasamy","doi":"10.12691/JFE-9-5-5","DOIUrl":"https://doi.org/10.12691/JFE-9-5-5","url":null,"abstract":"Earnings Per Share (EPS), among other measures, is considered as a reliable tool of risk analysis, financial performance, growth, and success of companies. The current study attempts to examine if high and low-beta firms have yielded returns that commensurate with the risk, meaning, ‘the higher the risk, the higher the returns and the lower the risk, the lower the returns’, in terms of share price returns and other yardsticks. ANCOVA test was applied on the high-beta (14) and low-beta (36) sample companies. The results threw a few interesting insights. In conformity with the existing literature, high-beta firms yielded higher returns and low-beta firms, lower returns. While MCAP (Covariate) had a statistically significant influence on the dependent variable EPS, P/E ratio (Covariate) did not exhibit any significant influence on the EPS.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"156 1","pages":"201-208"},"PeriodicalIF":2.4,"publicationDate":"2021-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80676606","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Effect of Mobile Banking on the Performance of Co-operative Bank of Kenya","authors":"Rachel Muthoni Gathu, P. Njenga","doi":"10.12691/JFE-9-5-4","DOIUrl":"https://doi.org/10.12691/JFE-9-5-4","url":null,"abstract":"Mobile banking is the use of mobile devices to perform financial transactions and access bank services. It was first introduced in Kenya in 1992 and since then there has been a period of rapid expansion and numerous technological innovations making mobile banking among the main technological tools used in the provision of bank services. The study examined the role mobile banking plays towards the performance of Co-operative Bank of Kenya. The study aimed at achieving four main objectives: the effect of mobile banking revenues, mobile lending, customer adoption and operational costs on Co-operative Bank of Kenya performance. A quantitative research design was used and secondary data was extracted from the quarterly electronic Banking reports. A regression model was used to prove a relationship between two variables: performance and mobile banking using profit before tax as a measure of the dependent variable. Several pre-estimation tests were carried out, they included unit root tests co-integration tests, heteroskedasticity tests and multi-collinearity tests. Data was analyzed using XLSTAT and regression analysis showed a positive association between mobile banking revenues, mobile lending and customer adoption. The study concluded that the key drivers of mobile banking was customer adoption and mobile lending. The recommendation of the study was to drive numbers by improving the mobile platform and ensuring that they are customer friendly and easy to access as well as providing affordable loans through Mco-op Cash their primary mobile lending tool as this translates to improved profits for banks.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"42 1","pages":"193-200"},"PeriodicalIF":2.4,"publicationDate":"2021-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80097507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Evolution Thread and Transformation Logic of the CPC’s Thought on the Quality of Economic Development in the Past Century","authors":"Wang Lin, Ma Yan","doi":"10.16538/J.CNKI.JFE.20210812.201","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210812.201","url":null,"abstract":"The transformation of China’s economy from high-speed growth to high-quality development is an important strategy made by the Communist Party of China （CPC） in the New Era. But what is the thought evolution basis for this major strategy and what is the transformation logic of this evolution? This question is extremely important for the understanding of the theoretical connotation and practice path of China’s high-quality development. However, relevant researches mainly focus on the decisive role of the objective law of material production on the proposal of high-quality development, while ignoring the key role of the CPC’s thought on the quality of economic development, which needs systematic analysis and in-depth study.Therefore, based on the 100-year timeframe since the founding of the CPC, this paper systematically combs the exploration thread of the CPC’s thought on the quality of economic development, and deeply analyzes the evolution logic of this thought. The research shows that the CPC has always concerned about the quality of economic development since its founding and experienced the following transformation of thought focuses: methodology perspective （1921–1949） – production relations perspective （1949–1978） – productive forces perspective （1978–2012） – production mode perspective （2012–）. The above evolution follows the Marxist logic of “the mutual interaction between productive forces and production relations, economic base and superstructure”, the socialist logic of “taking people’s interests as the fundamental value orientation”, and the Chinese special logic that “the CPC’s ideology has strong consciousness and high adaptability”. Therefore, it can be concluded that the proposal of high-quality development in the New Era not only follows the objective law of material production, but also inherits and breaks through the continuous exploration of the CPC’s thought on the quality of economic development, and is also driven by the goal orientation of people’s interests in the New Era and the self-conscious change of ideology, all of which constitute the special connotation of China’s high-quality development.The academic value of this paper could be concluded in three aspects: First, it combs the exploration of the CPC’s thought on the quality of economic development in different periods, which enriches the academic research on the CPC’s economic development thought. Second, it clarifies the transformation logic of the CPC’s thought on the quality of economic development, which is conducive to deepen the scientific understanding of the theoretical connotation and formation logic of the CPC’s thought on high-quality development. Third, it analyzes the characteristics of the transformation of the CPC’s thought on the quality of economic development, such as regularity, strong consciousness, high adaptability and consistent value orientation, which will strengthen the study on the advantages of both the CPC’s leadership and the Socialist","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"9 1","pages":"4-18"},"PeriodicalIF":2.4,"publicationDate":"2021-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78530361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Strategic Logic of Industrialization Thoughts of the Communist Party of China：Focusing on Mao Zedong’s Works during the Period of Socialist Revolution and Construction","authors":"Wu Shanlin, Liu Zongyuan","doi":"10.16538/J.CNKI.JFE.20210814.201","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210814.201","url":null,"abstract":"From 1949 to 1978, or the period of socialist revolution and construction, the Communist Party of China’s first generation of collective leadership formed a unique industrialization thought system. Through the related policy, the industrialization thought system had a profound impact on the industrialization practice, and before the reform and opening up an independent and relatively complete industrial system had been established. Their industrialization thought is embodied mainly in the strategy of prioritizing the development of heavy industry, and the strategy is the main body of China’s grand strategy.During the above period, the strategy of prioritizing the development of heavy industry played an important role in promoting the development of productivity. At that time, we must carry out the ownership revolution to create conditions for socialist industrialization, and the revolution was completed in the middle and late 1950s. On the other hand, we must carry out a revolution in production technology to consolidate the foundation of science and technology and the productivity. At that time, under the special international political and economic environment, in their point of view, security is more important than development to a certain extent, so they adopted the strategy of prioritizing the development of heavy industry, and the strategy is based on Mao Zedong’s thought of “three simultaneous developments”, which is the main content of his economic strategic thought. The thought of “three simultaneous developments” refers to the industrial development thought of simultaneous development of agriculture, light and heavy, the regional development thought of simultaneous development of coastal and inland areas, and the powerful country development thought of simultaneous development of economy and national defense.Although the strategy of prioritizing the development of heavy industry has realized security objectives through developing industrial structure and scale, it has not achieved the efficient economic results which are comparable to the market economy. Some economists made negative comments on this development strategy mainly on this ground. Such an evaluation is only valid in the sense of economics. This also suggests that once the conditions are ripe, China will carry out reform and opening up. However, from a strategic perspective, this evaluation is one-sided, because it takes no account of the most urgent security objectives of that era. And, in the present and future process of new industrialization, we still need to make strategic trade-offs between security and development to meet the requirements of the times.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"75 1","pages":"19-34"},"PeriodicalIF":2.4,"publicationDate":"2021-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91154366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Intelligent Supervision and Earnings Management Choice：A Natural Experiment Based on Golden Tax-III","authors":"Zhu Kai, Pan Shuxin, H. Mengmeng","doi":"10.16538/J.CNKI.JFE.20210716.101","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210716.101","url":null,"abstract":"This paper studies the impact of intelligent tax supervision on the decision of corporate earnings management. Companies determine earnings management strategies by weighing the marginal benefits and costs of accrual-based earnings management and real earnings management. Existing literature finds that managers prefer real earnings management than accrual-based earnings management because of regulatory pressure. This paper takes tax costs into consideration and adopts that tax will affect the substitution relationship between different earnings management methods.Accrual-based earnings management is realized by accounting methods. But real earnings management has a direct cash flow effect. Compared with accrual-based earnings management, real earnings management is subject to a higher level of book-tax conformity. Real activity manipulation is more costly due to tax incentives. Intelligent tax supervision represented by Golden Tax-III can effectively realize information integration and reduce information asymmetry between taxpayers and tax authorities. It can help to identify companies whose tax burdens deviate from the industry average. So Golden Tax-III can strengthen tax supervision and significantly increase the tax costs of real earnings management. Then, it can affect earnings management strategies. The higher the degree of tax non-compliance, the greater the impact of the implementation of Golden Tax-III.We use the implementation of Golden Tax-III as an exogenous event to construct a DID test. The results show that: Tax-noncompliant companies have a higher level of accrual-based earnings management after Golden Tax-III; tax-noncompliant companies have a lower level of real earnings management after Golden Tax-III; the substitution relationship between the two earnings management strategies in tax-noncompliant companies is mainly reflected after Golden Tax-III.The main contributions of this paper are as follows: (1) It directly examines the impact of tax costs on earnings management strategies, and finds that companies prefer accrual-based earnings management to real earnings management under strong tax supervision. It also expands the previous earnings management model. The research enriches and supplements the literature on earnings management. (2) It constructs a DID test to examine the impact of tax regulation on earnings management based on the implementation of Golden Tax-III. It can help to solve the problem of self-selection and endogeneity and supplement the relevant literature on tax and earnings management. (3) It finds that the intelligent supervision represented by Golden Tax-III can effectively distinguish tax-noncompliant companies and achieve precise supervision. The results help to understand and evaluate the economic consequences of Golden Tax-III, and also provide enlightenment for the development of intelligent tax supervision and taxation regulatory policy.","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"27 1","pages":"140-155"},"PeriodicalIF":2.4,"publicationDate":"2021-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84870745","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Corporate Earnings Pressure and Supply Chain Real Earnings Management","authors":"Peng Muze, J. Qinglu","doi":"10.16538/J.CNKI.JFE.20210816.101","DOIUrl":"https://doi.org/10.16538/J.CNKI.JFE.20210816.101","url":null,"abstract":"Listed companies face multiple earnings pressures from stakeholders in their operations. When normal operations cannot achieve earnings expectations or having opportunistic motivations, companies often choose to conduct earnings management under earnings pressure. With the enhancement of the recognition and supervision of accrual-based earnings management, real earnings management has gradually become the main earnings management tool for companies under earnings pressure. Due to the concealment of real earnings management and information asymmetry, it is difficult for the company’s external stakeholders to detect real earnings management. Meanwhile, the high degree of supply chain concentration is one of the important characteristics that distinguish the Chinese market from the West. It is also a typical scenario for relational transactions in China. Transactions with customers and suppliers can directly affect the company’s earnings, and long-term transactions provide the basis for forming relationship and conducting relational transactions. Therefore, whether the company will conduct earnings management based on the supply chain relationship is an important research question with Chinese characteristics. Our research on this problem can help to improve investors’ understanding of the company’s real earnings management, and improve the efficiency of capital market in information transmission and resource allocation.This paper uses A-share non-financial companies listed in Shanghai and Shenzhen stock exchanges from 2007 to 2019 as the main research sample to examine the impact of earnings pressure on the company’s supply chain real earnings management. The empirical results show that: Corporate earnings pressure has a positive effect on the company’s supply chain real earnings management, and bargaining power and executive shareholding of the company separately strengths and weakens this impact. Moreover, there is an alternative relationship between supply chain real earnings management and upward accrual-based earnings management under earnings pressure. This paper also further analyzes the implementation of supply chain real earnings management and its economic consequences. We mainly find that supply chain real earnings management is different from the company’s excess production, and is more pronounced when earnings pressure is positive; for economic consequences, the implementation of supply chain real earnings management can help the company meet or beat analysts’ forecasts, so as to increase the company’s market value and analysts’ coverage, but there will be a reversal of supply chain real earnings management in the following year.This paper makes two primary contributions: First, this paper enriches the literature on the impact of earnings pressure on corporate operation and accounting behaviors. It examines the company’s supply chain earnings management under earnings pressure, and proves that the company’s response to earnings pressur","PeriodicalId":53491,"journal":{"name":"Journal of Economics, Finance and Administrative Science","volume":"142 1","pages":"156-169"},"PeriodicalIF":2.4,"publicationDate":"2021-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86746692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}