The influence of operating cash flow and investment cash flow to the accounting conservatism measurement

This research investigates the influence of cash flow from operating and investing activities to conservative accounting practices. Cash flow from operating activities shows the performance of a firms and its earnings quality. Higher operating cash flow indicates better performance, and it is expected to produce better earnings in the future. Better earnings would be a positive signal for investor as a basic to predict the firm＇s prospect. Investing activities will push or lowering operating assets. For firms that implementing the conservative accounting practices, changes in investment will influence the earnings＇ quality. When the investment goes up, the conservative practices will cause lower reported earnings. The hypothesis for this research is that there is a positive relation between operating and investing cash flow to accounting conservatism practices about whether it uses market value or accrual measurement. The result of the first test using market value accounting conservatism as a proxy has shown a positive relation between operating and investing activities cash flow to accounting conservatism practices, but investing cash flow does not have a significant effect to accounting conservatism practices. The result from the second test, using accrual measurement accounting conservatism has shown a significant positive relation for both operating and investing cash flow to accounting conservatism practices. A positive relation between operating and investing cash flow to accounting conservatism practices indicates that accounting conservatism is one of the tools that can be used to measure firm＇s financial performance and as an investment decision making tool for investor. Nevertheless those effects highly depend on the accounting conservatism proxy measurement used.     

New Thoughts to Increase Farmers＇ Earnings

This paper suggests that farmers＇ earnings are hard to be increased because farmers＇ material capital and manpower capital are very low. Solving the farmers＇ problem of little growth in income doesn＇t merely satisfy farmers＇ currency increase, but has the strategic eyes to increase the growth speed over that of citizen. This paper has evaluated four kinds of thoughts of increasing farmers＇ income discussed at present. It points out that relying on external forces to develop agricultural industrialization and regulate rural economic structure, lead to the income that farmers get from is limited. Merely lightening the burden of farmers can not be the main approach to increase earnings, only investing more in agriculture may create condition for increasing income and diverting country redundant labors. But we must improve farmers＇ culture quality and capital accumulation firstly. At last, it proposes thoughts and suggestions to solve the problem.     

Adoption of International Financial Reporting Standards Has Enhanced Chinese Company Transparency

The research reported here shows that China＇s recent adoption （ASBE） has increased the quality of Chinese financial reporting of Accounting Standards for Business Enterprises With China＇s decade of World Trade Organization （WTO） membership marked by dazzling economic growth, it is useful to reflect on how financial reporting itself can assist in the country＇s future progress. Critical to the success of ensuring strength for this burgeoning economy is attraction of foreign investment capital. As China＇s internal consumption grows,     

Is China up to the Test？ A Review of Theories and Priorities for Education Investment for a Modern China

This paper reviews the key theories relating to the role of education in economic development and social change and how education, as a critical component of total factor productivity, contributes to sustained economic growth. It examines how China ＂s education policy reflects the country＇s unique dual economy. Focusing on the post-reform period, the paper contends that while progress has been made, there are risks to China＇s future growth prospects from failing to reap the benefits of sound education policy. It argues that if the Chinese education system is to continue to be a driver of rather than a drain on economic growth, and if China is to successfully manage its transition towards more inclusive, sustainable and equitable growth, reforms will be needed to improve the quality of education at all levels and to create an environment in which China＇s extensive human capital is duly recognized and respected. Crucially, the education system should be transformed to ensure it promotes a comprehensive range of human capabilities, including those that go beyond the part humans play in augmenting production possibilities.     

The Cause of Turnovers of Top Management -An Empirical Research on the Special Treatment Companies in China

The turnover of top management is important for both foreign stock market and corporate management. China has developed its own stock market for more than ten years. During this period, a lot of listed companies＇ top managers were on the move. Based on 97 Chinese ST companies of 2004, this paper invesdgates the main factors, which causes the top management turnovers in the ST companies. The results of regression analysis show that the turnover of top management in Chinese ST companies is highly positively related to the change of large shareholder and are negatively related to the rate of net profit to total assets. We also find that net cash flow that is provided from operations per share, the proportion of state-owned shares and the type of audit views have no influence on the top management turnovers in such ST companies in China.     

Poverty Reduction in China： The Contribution of Popularizing Primary Education

Using the instrumental variable model and the regression discontinuity approach,this paper explores how access to primary education affects the Chinese labor market and helps people to escape poverty.Several important findings are obtained.The popularization of primary education has significantly reduced poverty in China,especially in urban areas.In contrast,the Compulsory Education Law has not been well implemented for older children in rural areas.In addition,the labor market premium for completing primary education is much larger in urban areas than in rural areas.Poor rural school quality might explain this rural-urban disparity.Effort needs to be made to further reduce poverty by ensuring adequate financial resources for primary education in poor areas and improving school quality in rural China.     

Emerging Impact of Chinese Commodity Futures Market on Domestic and Global Economy

In this paper we construct a set of indices that capture the special features of the Chinese commodity futures market for the period from January 2000 to December 2011 to analyze the general properties of China＇s commodity futures market. Using these indices we investigate the risk premiums of Chinese commodity futures and verify that the commodity futures can act as an effective diversification tool for Chinese asset management. It is found that the commodity futures can hedge both expected and unexpected inflation in China, and agricultural commodity futures are found to signal inflation 2 months beforehand. Finally, we explore the relationship between Chinese and US commodity futures markets in the years 2000 and 2010, and find that their interactions strengthen over time. Our research reveals an increasingly important role of the Chinese commodity futures market in both the domestic and the global economy. Some policy changes are suggested in response to this trend.     

知识资本、吸收能力与产业创新绩效的影响研究——来自高技术产业分行业数据的实证检验

In the study of the influence of knowledge capital on the performance of industry innovation , based on the perspective of absorptive capacity, this paper use the panel data of high-tech industry in 2003-2014 to make an empirical analysis. This result shows that knowledge capital has a significant effect on the performance of industrial innovation, but the ability to absorb knowledge is not prominent. From the perspective of composition of knowledge capital, R&D capital and R&D human capital play positive roles in promoting innovation performance; About different dimensions of absorptive capacity, both potential absorptive capacity and actual absorptive capacity can promote innovation performance，but the ability to absorb knowledge is lower，higher R&D intensity has a significant competitive advantage for innovation performance, R&D institutions help to enhance absorptive capacity. The research has an exploratory effect on how to improve the efficiency of knowledge capital is to be absorbed and transformed to improve the performance of innovation.     

Housing Markets in China and Policy Implications： Comovement or Ripple Effect

The overheated housing market has recently become a top priority of the Chinese authorities and whether the ripple effect exists is key to understanding this housing issue. The present paper uses a cointegration estimation technique for six first-tier Chinese cities during the 2003-2013 period to show that the comovements among housing prices in China are fully reflected in a long-run equilibrium. Using the Toda- Yamamoto causality test, the ripple effect is found to be characterized by a lead -lag relationship. More importantly, it is found that Beo＇ing is the main source of housing price appreciation in China, and should be targeted as the regulatory object to efficiently resolve the troubles in this increasingly high housing-price era.     

Regional Environmental Performance and Its Determinants in China

A growing awareness of environmental quality hasplaced increasedpressure on China to improve environmental protection and regulations in the country. How have the regional economies in the country performed in terms of environmental efficiency？ The answer to this question is yet to be explored in the case of China. The objective of this paper is to present a quantitative analysis of environmental performance in China＇s regional economies and to examine the determinants of regional variation in performance. The findings are used to draw policy implications for environmental protection and are helpful in the discussion of China＇s future sustainable development.     

An Empirical Study on Momentum and Contrarian Effects in Chinese Futures Market

As Chinese futures market is on track of standardized development, its efficiency and related investors＇ strategy have drawn wide attention from scholars worldwide. This paper aims to provide an empirical study on momentum and contrarian effects in Chinese futures market. It investigates how efficient this market has been after decades of development and what investment strategy can be used to obtain significant positive excess return. The analysis is based on weekly and monthly trading data of the major commodity futures listed in three Chinese futures exchanges since January, 1999. By establishing a zero-cost investment trading strategy as testing method, this empirical study shows that contrarian effect is significant in both weekly frequency （short term） and monthly frequency （long term）, and that as the holding period extends, the contrarian effect disappears. It also concludes that the reverse effects in the short term and long term origin from three factors： defective information transfer system, mean reversion in the contrarian effect, and immaturity of investors＇ mentality.     

Australian Capital Gains and Commodity Taxes in China： Impact on Investor Behavior and Revenue Earnings

Apart from examining whether an asset＇s qualification for discounted tax treatment is associated with positive abnormal trading volumes and negative abnormal returns, as would be predicted if investors modified their behaviour to reduce their tax liability, this paper analyses the behaviour of investors due to market sentiment which is measured with the stock prices or index. Analyzing the 152 IPOs that had their prices appreciated, the Capital Gains Tax （CGT） concession is expected to change the behavior of the investor; they might wait till the end of 12 months in order to avail the option and then sell their asset leading to an abnormal increase in the volume of trading and hence a price change. Apart from this, how commodity taxes influence revenue earnings is studied. As the Gross Domestic Product （GDP） of China grows rapidly, tax revenue as a proportion of GDP will not be a predictable relationship. It is ultimately investor behaviour that determined volume of investment and therefore revenue earnings. The reason that CGT is taken as a backdrop to show the fickle nature of K gains across national policy sets up, affected by investor behavior or otherwise.     

Analysis of international construction brand for Chinese construction enterprises

At present, the resources of construction brand for Chinese construction enterprises come from the sensitivity induced by the demand-and-supply in the market economy, the stress caused by the international construction enterprises＇ competition and the tendency attributed by the international eco-economy. To a larger degree, the integration of these three forces constructed the choice source of brand strategy for construction enterprise in China. This paper will show that three forces are the base for the brand strategy and the corresponding main restrict factors. At last, the paper further reveals that Chinese construction enterprises should culture the dynamic and sensitivity bio-economy brand to pursue the sustainable development.     

Excess Liquidity and Inflation Dynamics in China： 1997-2007

The surge in international capital inflows and the remarkable excess liquidity in China between 1997and 2007are examined in the present paper. It is shown that China＇s improved position in terms of foreign exchange purchases, ignited by huge foreign capital inflows, has effectively induced excess liquidity in China. More importantly, by developing an econometric madel for inflation and excess liquidity, the present study demonstrates that excess liquidity has imposed significant pressure on inflation in China over the past 10 years. This finding suggests that excess liquidity in China has not only contributed to the rise in stock prices and the real estate market boom, but also affected the consumer goods market. The potential transmission mechanism of liquidity-driven inflation and policy implications of the findings of this study are discussed.     

Thought on the development direction of the modern service industry of Shandong Province

The modem service industry is based on technology, knowledge and public services. It is important to innovate and foster new economic growth, and the modem service industry is an inevitable requirement for the readjustment of the economic structure and the upgrading of the industrial structure. There are many categories in modem service industry. Thus, in Shandong Province, the service area that is characterized by high market demand, good fundamental condition, great growth potential and great driven effect, should be chosen to develop of the modem service industry. In this paper, the following industries should be developed first： the traveling industry, the finance industry, the modem logistics industry, the information service industry, the technology service industry and the community service industry. That how to develop and break through in these service areas is also put forward in this paper.     

A Study on Current and Future Guanxi Networks of China

Despite the abundant opportunities are presented by Chinese market, many foreign practitioners have commented that operating in China is more complex and time consuming than necessary, and of the 53 companies interviewed by Hong Kong＇s Bank of East Asia, 42% were reported not to be profitable （Economist Intelligence Union （EIU）, 1995）. Given the fact that China＇s potential as a market is unparalleled, while many foreign business practitioners have commented that operating in China is difficult to be profitable, and it is more complex and time consuming than it is necessary （Ewing, Garuana ＆ Wong, 1999）, a large number of researches on doing business hi China recogniZe the concept of Guanxi, a business relationship network, as the key for conducting successful business in China This study co llectsboth primary data and secondary data to explore the issues of Guanxi. The review on the secondary data helps to build the analysis techniques and study instruments. A survey questionnaire is developed after the study on the secondary data, and the primary data is collected from the surveys, which are faxed to sample groups in both Taiwan and Mainland China. The study on the Mainland China senior managers is to find the current Guanxi concept of China, while the Taiwan senior manager group and the Mainland China college student group are chosen to explore the future Guanxi changes. By using statistical techniques of the mean and standard deviation calculations, the t-test for two samples with equal variances, and the correlation test, the findings of this study help to answer the critical questions concerning the study objectives. The practical interpretation and implications of this study of Guanxi are gained from the summary of the statistical results. A conclusion and recommendations of this study on the Guanxi concepts are presented to business practitioners both inside and outside of China.     

Chinese green GDP and green charges accounting in 1990s

How to evaluate and judge the process of social and economic development, and how to promote the social and economic development by means of the proper economic instruments, which are two key issues to realize sustainable development for any country and region in the world today. One basic analysis of Chinese sustainable development evaluation and policy choice is made on the basis of the integrated accounting of environment ＆ economy. The whole paper includes three sections： Section 1, methodology, in which framework of green input-output accounting （GIOA） for natural resources-economy-environment （LEI, 1997, 1999, 2000 and 2003） is introduced; Section 2, trial estimate of Chinese environmental adjusted GDP （Green GDP） and analysis of Chinese green charges are included; Section 3, conclusions and policy choice, in which some policy suggestions for Chinese sustainable development are given.     

Multiple Forces Driving China＇s Economic Development： A New Analytic Framework

Based on economic growth theory and the World Bank's analytical framework relating to the quality of growth, the present paper constructs a framework that encompasses physical, international, human, natural and knowledge capital to synthetically interpret economic development. After defining the five types of capital and total capital, we analyze the dynamic changes of these types of capital in China and in other countries. The results show that since China's reform and opening up, knowledge, international, human and physical capital have grown rapidly, with speeds of growth higher than that of economic growth. As the five types of capital have all increased at varying paces, the savings level of total capital in China has quadrupled in 25 years and overtook that of the USA in the 1990s. The changes in the five types of capital and total capital reveal that there are progressively multiple driving forces behind China's rapid economic development. Implications for China's long-term economic development are thereby raised.     

Efficient Market Hypothesis and State-owned Shares＇ Circulation at Market Price

It is generally considered that the reason why the state-owned shares failed in circulation is that state-owned shares and the Negotiable Shares are in two separated markets. However this paper argues that the real reason why state-owned shares failed in circulation at market price and Negotiable Shares＇ price has been overstated is that Chinese stock market does not accord with Efficient Market Hypothesis, moreover Chinese investors are short of the concept COC and Chinese capital market has no short sells system.