Abstract:This paper studies the gray financial transactions in Chinas economic transition, through lender-borrower dynamic game analysis. Main conclusions are following. First, financial corruption by loan allocation may be characterized as two-category rent-seeking activities. Second, the severity of rent-seeking depends on the marginal benefit from transfer for bad loans and the marginal cost from internal control. Third, borrowers optimally decide the financing proportion in formal and informal credit markets. Fourth, given the bad loan reimbursement mechanism, banks and borrowers share the transfer through gray financial transactions. Finally, price equilibrium can be seen between formal and informal markets.

Abstract:Accounting fraud has become one of the most serious economic problems because of its tremendous negative effect on the economy. Through solving a two-stage dynamic game, the paper shows that the governments ex-post accounting supervision should aim to control the violation of accounting rule to an appropriate level rather than completely eliminating it. The ordinary ex-post accounting supervision system fails for those violators with high discount rate. The only effective method to this kind violation is to shorten the time lag. An effective accounting supervision system should consider the difference among executors first, then pay attention to their sensitivities to the penalty, and lastly determine the optimal accounting supervision level.

Abstract:This paper studies whether M&A creates value in China.Using the event study method and accounting indicators,it investigates 1216 cases covering all major M&A events related to listed companies from 1993 to 2002.The stock prices and financial performances of targeted companies are found to have both improved significantly after M&A deals;the reverse impact is seen on purchasing companies;and the net impact on purchasing and targeted companies as a whole is not statically significant.Therefore M&A creates value to Chinese securities markets since most listed companies are targeted companies,but it is doubtufl that M&A creates net value for the society as whole.Synergy effect explains why M&A is popular in China,and hubris hypothesis and agency motives explain why purchasing companies lose value.We also propose two new theories—“value redistribution hypothesis” and “internal decision mechanism hypothesis”.We show that they explain best the empirical results in the Chinese market.

Abstract:The thesis applies the economics of information and game theory, establishes a dynamic game of M&A to analyze the stakeholders benefit equilibrium. In order to describe the process of behavioral subjects dynamic benefit equilibrium, we apply Rubinsteins offer-counteroffer model to explore the benefit equilibrium and its motive function in the process of M&A. For the sake of explanation “the shareholders equity loss puzzle”, we apply the risk arbitrage model under information advantage to bidding firms, to analysis the risk arbitrage compensation behind the stock market for the loss of the bidding firms premium expenditure. Based on these principles, we apply market analysis to have an empirical study on benefit allocation of the listed companies M&A, the results reveal that it also exits “the shareholders equity loss puzzle” in China stock market.

Abstract:Withe the logic linkage between investment and economic growth as its theme and theoretical base,this paper analyzes and identifies the role of transnational corporations in the world economic development as well as the economic growth of individual countries in the context of economic globalization.This ipaper believes that the transnational corporation is the main driving force of world economic development,directly reflecting the economic strength and international competence of a country.In this regard,we must introduce the investment of transnational corporations,while encouraging the domestic enterprises to “to out” and make better use of international and domestic resources.Furthermore,this paper discusses and comes up with Chinas national strategies for introducing the investment of transnational corporations and encouraging the domestic enterprises to make investment abroad.

Abstract:This paper is an empirical research that studies the impact of governments Science & Technology S&T Incentive Policy on the R&D input and its patent output of large and medium-sized Industrial enterprises in Shanghai in views of dynamic. It adopts the random effect model based on panel data. The general finding is that both sponsoring and tax deduction have a positive effect on business R&D input, and the more stable in governments S&T sponsoring, the better effects on promoting Industrial enterprises increasing R&D input. However, the effects are different because of their different policy characteristics. Furthermore, we find that the business R&D input has a more direct and significant effect on the patent output in comparison to the effect of governments S&T sponsoring. This paper explores the differential effects of the R&D input based on various sources and degree of human capital intensity on patent, as an output of R&D.

Abstract:This Paper assesses the equity of a general mode of the reform of Chinese health insurance-Weihai mode. Firstly it discusses the total inequality of access to the health system and the finance system of health insurance by calculating the Gini index, Atkinson index and Iloss which is proposed by the author. Then it studies the factors influencing the inequality by multi-factor regression. The effection of the finance system on the redistribution is also discussed. This paper finds that the Weihai mode improved the equity influenced by income, but the effection of other factors is different with each other. The equity of the financial system is improved after the reform, however the financial system enlarged the equality of income, and the change of the effection relied on the extent of risk aversion.

Abstract:The city development pattern in Chinese transition economy distinguishes both from that in market economy and from that in traditional planned economic system. Both the market forces such as the ability of self-financing and gaining resources by redistribution impacts of hierarchy work. From our econometric analysis it can be seen that, with marketization, the eastern region has transferred to self-financing dominated pattern of city development, while the central and western cities still rely heavily on redistribution of resources. Cities relying on redistribution are more possible to block up migration, which distort the structure of urbanization at national level. Thus marketizing the social service and construction of infrastructure will speed up the changes from pattern of redistribution to self-financing pattern so as to improve the mechanism of urbanization in market economy.

Abstract:Before the 19 th and even early 20 th centuries,tax farming was the dominant mechanism the state employed to collect taxes.However,there is little in depth research on it.Currently,modified system of tax farming appeared in USA,Britain,and local government in China.Therefore,a historical study of tax farming in history is very useful.Drawing from transaction cost economics and historical sociology,this paper explores why tax farming rose and fell in the early modern period.It first compares tax farming systems in this period,and identifies five patterns of tax farming.Next,it reviews theoretical explanations about tax farming.Upon this,this paper approaches tax farming from the perspective of contractual choice,and develops a transaction cost model to examine the states contractual choices in tax collection.

Abstract:The theory of capital structure plays a very important role in modern financial research. From the cross-study point of view, this paper reviews the main academic compositions and achievements in this area since 1980, gives a comprehensively introduction to the up-to-date literatures on joint-research based on the theory of industry organization, the theory of behavioral finance, the theory of corporate governance and the theory of capital structure, discloses the inter-relationship between industry competition, irrational activities, corporate governance and capital structure. At last, on the basis of the front studies, this paper gives some remarks on the developing trend of the theory of capital structure.