Vol. 2 No. 1 (2020)
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Open AccessOriginal Research Articles
Article ID: 613
The Influence of China's Export Trade on Technical Barriers to Trade and the Countermeasuresby Yaxing Zhang, Xiaolin Sun, Longzhong Yi, Xue Yuan
Global Finance Review, Vol.2, No.1, 2020; 224 Views, 39 PDF Downloads
With the continuous development of China's economy, foreign trade in the national economy has been increasing. In foreign trade, export trade accounted for a large proportion, but due to technical level, export product structure, trade surplus and other reasons, in recent years China’s export products frequently encountered technical barriers to trade (TBT) in developed countries. In the development of contemporary international economic and trade, TBT are playing an increasingly important role, its influence and role has been far beyond the general trade measures. In the world, especially the developed countries, on their own technical advantages, apply more and more targeted, flexible, extensive, covert and mandatory TBT as an important means of protecting their industries. TBT has become the main means and advanced forms of national trade protectionism. China's accession to the WTO faced dual challenges in breakthroughs in foreign technical barriers and the protection of the domestic market. Due to the concentration of China's export market, the weakness of export products and the fact that China has not yet established its own TBT system, early warning mechanism and other reasons, TBT impact on China is significant. According to statistics, nearly five years, 71% of China's export enterprises, 39% of the export products are foreign TBT restricted, and thus cost and risk losses of Chinese enterprises are increasing year by year. In 2005 and 2006, about 25.1% and 31.4% of China's export enterprises were affected by foreign TBT, with total losses of US $ 28.8 billion and US $ 35.92 billion respectively. Agricultural products, electrical and mechanical, energy, mining, textile and other products are the main target products that developed countries implement TBT towards China. Therefore, our government and enterprises must take corresponding measures to resolve these unfavorable factors to ensure China's position and interests in international trade.
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Open Access
Original Research Articles
Article ID: 614
The Research for Hebei Province’s Furniture Export Tradeby Xi Lui, Xin Yu, Dongling Jiang, Shuzhu Feng, Ying Wang
Global Finance Review, Vol.2, No.1, 2020; 760 Views, 14 PDF Downloads
In recent years, the export of furniture in Hebei Province has been increasing rapidly. The trade of exporting furniture has also been increasing in the country. The rapid growth has revealed some of the troubles and aff ected the stable and healthy development of furniture industry. In order to further promote a sustainable and healthy development in furniture industry, several corresponding countermeasures had suggested for analyzing the existing problems. This paper studies through the status quo of Hebei Province’s furniture export trade and the existing problems of export trade, to finds out the positive and effective strategies that could support the furniture export trade at Hebei Province develop with both quality and quantity.
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Open Access
Original Research Articles
Article ID: 615
Market Reaction to CEO Turnover: Empirical Evidence from Fortune 500 Firmsby Dipesh Karki, Binam Ghimire
Global Finance Review, Vol.2, No.1, 2020; 320 Views, 10 PDF Downloads, 0 Market Reaction to CEO Turnover: Empirical Evidence from Fortune 500 Firms Downloads
This paper applies event study analysis to explore the impact of change in leadership on the market return of Fortune 500 firms. The study analyzes various market reaction following the announcement of CEO's departure along with the circumstances leading to it. The results show that on the occurrence of the event, market reacts positively in line with “ability hypothesisâ€. Especially inside succession comparatively found to provide better market reaction than outside succession. However the type of departure showed no statistically significant abnormal returns Further abnormal return prior to the event was witnessed suggesting information leak. Overall the study is consistent with Efficient Market Hypothesis.
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Open Access
Review Articles
Article ID: 761
Earnings Management, Debt Contracts and Monetary Policyby Ying Wang
Global Finance Review, Vol.2, No.1, 2020; 226 Views, 10 PDF Downloads
The impact of debt contract on earnings management is analyzed from two perspectives: on the one hand, debt has an incentive and constraint effect on executives, and a certain degree of debt can restrict the behavior of earnings management. That is, enterprises can maintain high earnings quality in order to obtain low-cost financing. On the other hand, debt financing increases the interest cost of enterprises. In order to keep the profits of external reports unchanged, enterprises will have earnings management motivation in the short term to maintain the stability of stock price. Since debt financing has both a positive restraining function and a negative stimulating effect on earnings management, what kind of positive and negative effect prevails is the content of this paper. Based on the data of Chinese listed companies from 2010 to 2019, it is found that the new debt financing of listed companies significantly stimulates earnings management, especially positive accrual earnings management. However, the tightening monetary policy has a significant restraining effect on this negative effect. Under the tightening monetary policy, the stimulation of new debt on earnings management is significantly weaker than that in the loose monetary policy environment. Under the tightening policy, the stock price is not so sensitive to earnings management, so the motivation of enterprise earnings management is obviously weakened, even if there is new debt contract.
