No.1.Jan. 15，2021

HIGHLIGHTS

TheImpactofExecutive’MilitaryExperienceonCorporateCashHoldings

ZHA Daolin LI Bin

·3·

(SchoolofEconomicsandManagement,BeijingUniversityofChemicalTechnology,Beijing100029,China)

Abstract:The paper uses the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2018, and studies the impact of executives’ military experience on corporate cash holdings based on the fixed-effects regression model. The results of empirical analysis show that executives’ military experience has a positive impact on the corporate cash holdings, that is, the corporations who have military executives have higher cash holdings; Both the nature of state-owned enterprises and the size of companies will weaken the positive impact of executives’ military experience on corporate cash holdings. Further analysis of the transmission path of military executives' influence on corporate cash holdings reveals that military executives have improved their corporate cash holdings by increasing the enterprise innovation and choosing the offensive strategy. The results not only reveal the positive impact of executives’ military experience on corporate cash holdings, but also the moderating effect of enterprise nature and company size on the relationship between executives’ military experience and corporate cash holdings and the mediating effects of enterprise innovation and corporate strategy choice. This conclusion is helpful to understand the impact of the personal experience of executives on the internal corporate governance, and it has important implications for optimizing the financial management and human resource management in practice.

Keywords:Military Experience; Cash Holdings; Enterprise Nature; Company Size; Enterprise Innovation; Corporate Governance

TheInfluenceofEconomicPolicyUncertaintyonCorporateStrategicDifference

MA Ning JIN Guanghui

·14·

(SchoolofManagement,LanzhouUniversity,Lanzhou730000,China)

Abstract:From the perspective of economic policy uncertainty, the paper discusses the opportunities and choices of companies to change their strategic positioning. On the basis of describing the degree of corporate strategic difference based on the annual data of China's A-share listed companies from 2005 to 2018, the paper uses the economic policy uncertainty index to empirically test the effect of policy uncertainty on corporate strategic difference. The results show that the uncertainty of economic policy has a significant positive influence on the degree of corporate strategic difference. When the external industry competition is more intense, the company's financing constraint level is lower, the positive effect is more significant; Compared with private enterprises, state-owned enterprises may have more ability and capital to change their original strategic positioning. The research conclusions not only enrich the research on the economic consequences of economic policy uncertainty, but also provide practical support for exploring the expected effect of "opportunity" brought by economic policy uncertainty in the context of transition economy.

Keywords:Economic Policy Uncertainty; Strategic Difference; Industry Competition; Financing Constraints; Nature of Equity

AnalystHerdingBehaviorandCorporateRisk-Taking

SHEN Danlin

·34·

(SchoolofManagement,ChinaUniversityofMining&Technology,Beijing100083,China)

Abstract:Based on the data of Chinese A-share listed firms, this paper empirically studies the impact of security analysts’ herding behavior on corporate risk-taking. The results show that analyst herding Behavior weakens corporate risk-taking. Further research shows that increasing information asymmetry is an important mechanism for analyst herding behavior to reduce corporate risk-taking. Meanwhile, the negative relation between analyst herding behavior and corporate risk-taking is more prominent in firms with severe financial constraints and weak corporate governance. In addition, analyst herding behavior restrains corporate risk-taking through the channels of reducing corporate innovation and debt financing. This paper enriches the literature on the influence factors of corporate risk-taking and on the economic consequences of analyst herding behavior, which is helpful to understand the role of analysts played in enterprise risk selection.

Keywords:Security Analysts; Herding Behavior; Corporate Risk-Taking; Information Asymmetry; Financial Constraints; Corporate Governance

TheRegulationEffectofMonetaryPolicyundertheIndividualIncomeTaxDistortionfromthePerspectiveoftheLaffer-LikeCurve

JIN Xiangyi1ZHANG Wenfei2

·45·

(1.SchoolofEconomicsandManagement,DalianUniversityofTechnology,Dalian116024,China；2.SchoolofEconomics,LanzhouUniversity,Lanzhou730000,China)

Abstract:As an important financial means, the individual income tax policy has gradually highlighted its important role in stabilizing the economy in the downward trend of the global economy, which is reflected in the fact that in recent years, China's government departments have repeatedly adjusted the individual income tax policy. At the same time, the monetary policy is another important way to regulate economic operations, under the environment of tax burden distortion of households, which is mainly consisted of individual income tax distortion, and it has different economic regulation and control effect as it used to be. Based on these conclusions, this paper explores the changes of the monetary policy in the distorted environment of individual income tax by constructing a dynamic stochastic general equilibrium model covering individual income tax policy and currency policy. The results show that monetary policy has a clear Laffer-like curve relationship in the context of individual income tax distortion, that is, with the increase of the individual income tax rate, the regulation effect of monetary policy on the macro economy shows a first increase and then decrease nature. The analysis of the welfare loss shows that in the context of the individual income tax, the social welfare loss also has the relationship of the Laffer-like curve relationship. At the same time, compared with the focus on inflation and the focus on output, the central bank focusing on production targets can minimize the welfare loss of the whole society. The conclusions mean that in the environment of distorted individual income tax, reasonable selection of the optimal tax rate range can make monetary policy play a multiplier role in macroeconomic regulation and control.

Keywords:Individual Income Tax Distortion; Tax Burden Distortion; Monetary Policy; Laffer-like Curve; DSGE Model

DoesCFOServingasaDirectorRestrainCorporateExtremeTaxAvoidance?

SUN Xuejiao ZHAI Shuping SU Ye

·67·

(SchoolofAccounting,TianjinUniversityofFinance&Economics,Tianjin300222,China)

Abstract:This paper analyzes the impact of the CFO’s directorship on extremely aggressive and conservative tax avoidance using the quantile regression based on the sample of A-share listed firms from 2009 to 2017. The study finds that when the tax avoidance is extremely conservative, CFO serving as a director raises the tax avoidance; when the tax avoidance is extremely aggressive, CFO serving as a director reduces the tax avoidance. Further study finds that CFO serving as a director restrains extremely aggressive and conservative tax avoidance at the same time when the tax-playing credit rating is higher and the ownership concentration degree is higher. CFO’s directorship has a significant governance effect on extremely aggressive tax avoidance, and this effect is more pronounced in stronger supervision area. The study shows that CFO serving as a director can play the role of financial consultation and supervision to extreme tax avoidance, and the strengthening of internal and external governance mechanism can strengthen the governance effect of CFO’s directorship.

Keywords:CFO Serving as a Director; Extreme Tax Avoidance; External Governance; Internal Governance

CanJointVenturesPromoteInnovationofLocalEnterprise?

MI Feifei1NI Chaojun2YU Anqi1

·125·

(1.SchoolofInternationalTradeandEconomics,UniversityofInternationalBusinessandEconomics,Beijing100029,China; 2.SchoolofEconomicsandManagement,ShiheziUniversity,Shihezi832000,China)

Abstract:The Joint venture is an important form of international specialization based on factor cooperation. The paper matches a new data set based on Annual Survey of Manufacturing Enterprises database, SIPO and the establishment data of FDI, and systematically evaluates the impact of participating joint ventures on the innovation of local enterprises by the PSM-DID method.The results show that the entry of joint venture foreign direct investment significantly improves the innovation of local parent companies. From the perspective of the source countries of foreign investment, the innovation promotion effect of joint ventures from high-income countries is small. Compared with non-state-owned enterprises, participation in joint ventures plays a greater role in promoting innovation of state-owned enterprises. Where the degree of intellectual property protection is high, the participation in the joint venture will play a greater role in promoting the innovation of local enterprises. When local enterprises do not have absolute controlling stake in the joint venture, participation in the joint venture plays a greater role in promoting their innovation. In addition, this paper proves that the export effect and advanced labor force effect are the important transmission mechanisms of joint ventures' innovation promotion to local investors. The research has important policy guiding significance for our country to introduce foreign capital with high quality and promote enterprise innovation.

Keywords:Joint Venture; Patent Application; Innovation of Enterprises; Export Effect; Labor Force Effect; PSM-DID