The report is dedicated to the article “The Speed Type Profit Model and the Quality Type Profit Model：An Empirical Explanation of the Heterogeneity of Enterprises’ Performance. ”
An article titled “the Speed Type Profit Model and the Quality Type Profit Model：An Empirical Explanation of the Heterogeneity of Enterprises’ Performance”, written by IQDS Professor Cheng Hong and IQDS Doctor Chen Chuan, was published on South China Journal of Economics (No.3, 2016).
The paper explores the reasons why some enterprises bucked up under the widespread downward economic pressure which impacts on enormous enterprises’ performance in the new normal. By using the 2015 China Employer-Employee survey (CEES) data, this paper has classified the enterprises whose total factor productivity (TFP) growth (2013-2014) are lower than or equal to the GDP growth as “speed profit model” and the enterprises whose TFP growth are higher than the GDP growth as “quality profit model”. By building the comprehensive quality ability index covering quality input and quality performance, methods of IV, LIML and PSM have been used to obtain empirical explanations for different profit models by which the enterprises cope with the macro-economic downward pressure based on their own quality ability. It is found that the quality ability has significant positive causal effect on enterprises' performance.
South China Journal of Economic is an authoritative, comprehensive economic journal in the economic area of China. It has been credited as core periodical of Chinese Economy and Economic Planning and Management, outstanding national journal, social science journal for international exchange and Chinese Core Journal.