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In recent years, increasingly attention to Corporate Social Responsibility(CSR) incurred the suspicious of "maximized profits of Shareholders". Companies must be responsible for the stakeholders, this is a realistic question. However, undertaking social responsibility will affect the operating target, and then if this can affect corporate governance has become focus and aroused much attention,...
The paper studies the impact of managerial overconfidence on corporate investments under the moral hazard framework. By assuming a fully competitive and information-transparent capital market as well as rational investors, the study finds that managerial overconfidence reduces moral hazard, but may result in over- or under-investments; the relationship between managerial overconfidence and inefficient...
As an important component part of the financial safety net, the deposit insurance system plays a unique role in protecting the medium and small depositors' profits, and maintaining the well-functioning of the financial system. China will establish a deposit insurance system as an important task of the recent financial industry. This paper from the perspective of economy, analyzes rationally of the...
Collective actions are typical social and economic behavior, in which free riders exist objectively. Successful execution of collective actions is related to pioneer game, the value expectation and the follow-up sequence of followers. Through localized experiments, this paper verifies that: (i) collective actions are realizable, (ii) free riders can be weakened or relieved, and (iii) the realization...
Corporate governance is contingent governance. When the corporate borrowers come into financing difficulties and facing difficulties of returning the borrowing capital, banks as creditors should involve in the corporate governance and make a choice between the liquidation and the debt renegotiation. In this paper, we set up a four-time-point model to analyze the best choice of banks and conclude:...
Particularism-based clan trust restricts family business growth in China. The result of trust game is that as long as the additional revenue x obtained by disloyal professional manager is less than 1/i of revenue b by loyal, cooperation between the family business and professional manager can be achieved, and trust can be established. By extension, if a society has perfect legal system, code of ethics...
The propagation of new technology generally has huge financing demand, and the financing is in the information asymmetry environment. Market-based financing pattern and bank-based financing pattern have different mechanisms in eliminating information asymmetry problems, and thus the efficiency to provide funds for the propagation of new technology is different. Comparing the mechanisms and efficiency...
As the main method to prevent the moral risks of the management level, the supervision is implemented by many aspects. Grounded on the basic theory of corporate finance, this paper used grey relational method to analysis the data of 1276 list companies in Shanghai and Shenzhen stock market. It explored that supervision from different executors effected the behavior selection of the management under...
The study divides the risks caused by enterprise human capital investment (EHCI) into two types: prediction risk and incentive risk, according to whether the risk reason is related to the subjectivity of the invested object or not. Then the study analyses the characteristics of the incentive risk, and sets forth the means to control the incentive risk as viewed from investment.
Classic financial theory suggests that the external environment is effective, and there is no agent problem in corporate finance decision-making. However, actual market always deviates from the efficient market, corporate finance decision-making need to take into account manager's moral hazard. In this paper, we analyze the effect of capital structure on over-investment and on-the-job consumption...
Debt and equity financing are two main modes of corporation external financing. Over the recent years, corporations in China favor equity financing. Based on a comparison between the two financing modes, this paper analyses the advantages of debt financing. There are at least five advantages debt financing, such as financing costs, avoiding equity dilution, financial leverage, constraints to the management...
Asymmetric or incomplete information is a common and much discussed feature of market interactions, often constituting the difference between 'off the shelf' policy prescriptions and the realities of the development process. Besides outlining the resulting imperfections in the markets for physical and human capital, this paper attempts to provide an introduction to the applicability of fuzzy set theory...
In this paper the credit risk of enterprise is represented by three factors: the probability for enterprise to lie to banks 1-Y, the probability for banks to check enterprise Xand the probability for banks of obtaining the real revenue of the enterprise q. Then we construct a replicator dynamics model about banks and enterprise's strategy, and analyze the stability of evolutionary equilibrium. Meanwhile...
This paper studies the interaction of credit loan game. In our model with subjective and objective dual credit risk, multi-channel financial mode, we present game equilibrium relationship of the enterprise, the non-banking financial institution and the bank. Then we give corresponding investment and financing policies, and in detailed explain following problems such as the impact of the enterprise's...
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