On the conceptual foundations of financial reporting

Standard setters advocate a balance sheet approach to financial reporting, which views assets and liabilities as primary, and income as just the derivative change in net assets. This paper argues that income is conceptually and practically better described as ‘adjusted net cash flows,’ where the adjustments are the accounting accruals. One proof of that is seen in the existence of whole accounting systems like tax accounting and national income accounting, which emphasize the determination of income but have no balance sheets. The paper also argues that an income-based approach to financial reporting is by nature better suited to reflect the success of advancing cash to earn more cash, which defines what for-profit entities do. There are two main features of the income-based approach. One is attention on the cash flows as the natural foundation for financial reporting because they are precisely determined, and provide a clear link to firm valuation. The other is attention on the accounting accruals, which serve to adjust the raw cash flows to better show the current success of investing cash to ultimately earn more cash. Specifically, the paper argues for revenue recognition which is close to current practice, and for expense recognition which is aligned with the matching principle.     

Venture capital trusts and the expiration of IPO lock-up provisions

Venture capital trusts (VCTs) were introduced to provide private equity capital for small expanding companies and to promote innovation. Investors in initial public offerings are rewarded with tax relief on the cost of lock-up provisions to stabilize the market. This paper examines the market reaction and trading activity around the expiration of lock-up provisions of 148 VCTs listed on the London Stock Exchange from 1995 to 2006. Downward-sloping demand curve theory suggests that an increased supply of VCT shares at the expiry date could shift their value to a new equilibrium at a lower price. Supporting this prediction, we document evidence of negative abnormal returns as well as permanent increases in the price discount relative to net asset value and trading volumes at and around the expiries of the required holding periods of VCTs. In addition, less negative abnormal returns, lower abnormal discounts and lower abnormal trading volumes are associated with VCTs that invest in AIM-listed companies due to lower information asymmetry, that experience lower prior performance due to a less pronounced disposition effect, and that are subject to a shorter lock-up horizon or are offering more generous tax benefits.     

Bailout uncertainty in a microfounded general equilibrium model of the financial system

This paper develops a micro-founded general equilibrium model of the financial system composed of ultimate borrowers, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood of governmental bailouts on leverage, interest rates, the volume of defaults and the real economy. The distinction between risk and uncertainty is implemented by applying the multiple priors framework to beliefs about the probability of bailout.Results of the analysis include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both the real and financial sectors and may lead to a total drying up of credit markets. (ii) Lower exante bailout uncertainty is conducive to higher leverage, which in turn raises moral hazard and makes the economy more vulnerable to expost increases in bailout uncertainty. (iii) Bailout uncertainty affects the likelihood of bubbles, the amplitude of booms and busts as well as the banking and the credit spreads. (iv) Higher bailout uncertainty is associated with higher returns’ variability in diversified portfolios and higher systemic risks, (v) Pre-crisis expansionary monetary policy reinforces those effects by inducing higher aggregate leverage levels. (vi) The larger the change in bailout uncertainty and the change in aversion to this uncertainty, the stronger the pre-crisis buildup and the deeper the ensuing crisis.A central policy implication of the analysis is that the vaguest is bailout policy prior to a crisis, the lower is the magnitude of investments destroyed or missed due to errors in evaluating bailout and other intervention policies. On the other hand, the clearer is bailout policy upon the eruption of a crisis, the smaller the contraction of credit and the destruction of investment activity.     

Valuation effects of corporate social responsibility

This paper develops a valuation model of the firm that provides for the expenditure of corporate resources in support of community, social or environmental causes. We show that under certain circumstances CSR expenditures create value for the firm. We also test our model by simulations and confirm that, at least under some conditions, CSR does pay off in the form of value creation.     

Research on a diagnostic system of rural vitalization based on development elements in China

In 2017, the Chinese government implemented a national strategy of "Rural Vitalization" that sought to realize full-scale rural vitalization. However, is it possible to achieve vitalization for all the villages in China? How should their development potential be determined? This paper identified and analyzed the "element-composite" messages of rural development based on 99 exemplary sites of “Beautiful Villages” in China. Combined with the projection pursuit classification method, a diagnostic system of rural vitalization was established; then, Dehua County was taken as a case study for an in-depth analysis. Based on national data analysis, the final results indicated that livelihood resources (LR), agglomeration effects (AE), location and transportation (LT), cultural/natural landscapes (CN), and economic circumstance (EC) are essential elements for successful rural development. Additionally, EC was the only exogenous element, while the remaining elements were endogenous. Furthermore, the villages with better EC presented urbanization rates of 38∼82 % and Engel coefficients of 29∼41 % in their counties; exemplary sites lacking LR, CN, LT, and AE account for 13.13 %, 19.19 %, 26.26 %, and 60.61 % respectively, so the indispensability of these elements decreases progressively in sequence. Only 2 % of villages rely on single element for success, therefore, the composite pattern of development element was also critical; 10 out of 16 types were found to successfully facilitate village development, among which, the type of R-a-L-C (32.32 %) and R-A-L-C (15.15 %) were considered as the greatest potential patterns for vitalization. Finally, by means of the diagnostic system, the ratio of representative villages for high-low potential in Dehua County is evenly split; then, development paths, and land use policies that match with paths were proposed, on the basis of development potential and “element-composite” condition of themselves.     

农村集体经济组织与农民专业合作社协同扶贫模式创新:重庆例证

农村集体经济组织和农民专业合作社是与农民联系较为紧密的两类经济组织,是贫困地区打赢脱贫攻坚战的重要内生性力量。但在实践中,受农村集体经济组织市场主体地位不明确、承担市场经营风险能力弱及农民专业合作社总体规模偏小、脱贫带动力不强等因素影响,两类主体的扶贫作用都未能得到充分发挥。重庆市城口县是国家扶贫开发工作重点县,在近年来的脱贫攻坚中,一方面普遍性地成立了新型农村集体经济组织,作为承接相关政府部门扶贫资源、开展村集体资产运营管理的平台;另一方面通过平等协商将村集体经济组织承接的扶贫资源以入股方式投入当地运行规范、实力较强的农民专业合作社,以获取相对稳定的分红收益,并优先用于增加贫困户收入。该模式既为村“两委”参与市场活动和承接政府扶贫资源提供了有效载体,又较好地保证了农民专业合作社等市场主体的经营自主权,有利于构建激励兼容、多方共赢的长效扶贫机制,是有镜鉴价值的扶贫模式创新。     

非公允关联交易中董事责任问题研究——兼评世行营商环境评估之董事责任程度指标

在关联交易中,对关联董事的追责应采用忠实义务标准。然而,当前立法存在"程序公平倾向"以及"忠实义务追责标准狭窄"的问题,导致无法对已履行法定程序的关联董事进行追责。对此应将忠实义务下追责标准改为全面公平标准,对关联董事课以承担非公允关联交易中公司所受损失的义务;对非关联董事的追责应采用勤勉义务标准。因为当前立法过于原则化,缺乏适用空间,所以应在信义义务两分法下积极拓展勤勉义务即"知情"的基础上决策的内涵,衍生出对于公司造成损失的直接故意、间接故意以及重大过失三种追责情形,以弥补董事问责空隙,并将"商业判断规则"作为法院介入而非排除审查的判断标准,进一步激活董事追责的路径。     

我国化肥价格波动与农民收入关系的实证分析

本文利用1978～2008年的时间序列数据,运用脉冲响应函数和方差分解技术考察化肥价格波动与农民收入之间的关系,发现化肥价格的波动与农民收入变化之间存在着双向的因果关系,即化肥价格的上涨导致农民增收缓慢,而化肥价格上涨的根本原因在于＂需求拉动＂和＂成本推动＂。今后必须从需求和供给两方面采取对策：一方面通过建立化肥直接补贴制度和化肥储备制度,从需求上控制化肥价格上涨;另一方面通过采用新型化肥生产技术和给予化肥生产企业生产用能以优惠政策,从供给上控制化肥价格上涨。     

后危机时代扩大居民消费的路径

后危机时代,中国扩大内需的重点在于增加消费,而增加消费的重点在于增加城乡中低收入群体的消费。为此,必须增加居民的收入尤其是城乡中低收入群体的收入,并优化其收入结构。