Institutions Background, Leverage and Corporate Investment
A cental issue in finance is whether leverage affects investment poilcies.Neoclassic finance theory maintains that leverage is irrelevant with investment. A firm with good projects can grow no matter how its capital structure is ,because it can always find funding to invest.Considering the informational asymmetries andagency problems, modern finance theory accepts the view that leverage affects investment policies. However, there are also two sides about this view. On one side, the researchers think a firm’s debt induces under-investment because leverage prevents a firm from raising funds to finance positive net persent value(NPV)projects.Namely,leverage restrains a firm’s valuable investments. On the other side, the researchers think a firm’s debt has a disciplinary role on over-investment, because leverage pervents a firm fromaccepting negative NPV porjects.Meanwhile,there are different empirical research condusions.Although foreign researchers find that leverage plays a disciplinary role, Chinese researchers almost don’t find debt’s disciplinary role.Clarifying this point is important for choosing a firm’s capital structure and investment poilcies.The essay firstly construst its thoretical analysis structure about debts affects corporate investment on the basis of omnibus literature and thoretical analysis;secondly,considering our special market background,such as most listed companied were oriented from state companies,corporate debts roots in state commercial banks,government plays an indirecr or direct role in state banks and state listed companies,forthermore, the process of marketization is apparent different accounting to various district of our country,the eastern littoral has the higher marketizational process.Therefore,we choose the ratio of bank loan to total assets as the variable to weigh the leverage,from ownership propertiy and the process of marketization aspects to examine the relation between leverage and corporate investment.At last,based on 3576 listed companies’ data from 2003 to 2008 which are from shanghai and shenzhen exchange, after controlling for the variables that influence a firm’s investment such as Tobin’s Q, sales income and cash,the essay obtains two major research findings as follows.For one thing,as far as our all listed companies to be concerned,the relation between leverage and corporate investment is negative.The negative relation between leverage and investment is weaker in firms with state ownership than in firms with non-state ownership.In addition,the negative relation between leverage and investment is stronger in firms with low growth opportunities and poor operating performance than in fims with high growth opportunities and good operating performance. Furthermore,the relationship between leverage and investment is weaker in firms with low growth opportunities and poor operating performance which have state ownership.For another,the he relationship between leverage and investment is weaker in firms with low market index than in firms with higher market index.The conclusion of this essay suggests that almost of listed companies in our countries exist non-efficency investment ,the debts donot exert its functions.Therefore, the writer suggests that we should also add the flexility of debt to advance the efficient corporate investments.Meanwhile, the” soft-budget” should be altered.
The Analysis of the Commercial Bank’s Property Rights Structure Based on GHM Model and Its Development
The governance of Commercial Bank made a focus of global attention by the “Strengthening the corporate governance of banking institutions” which was issued by the Basel Committee in September of 1999. Effective corporate governance could obtain and maintain the public trust and confidence in the banking system, it is also the key to make the bank even the whole economic system run steady. Effective corporate governance structure consists of three parts: the clear property rights structure, reasonable organizational Structure and effective incentive and restraint mechanisms. The three parts are interrelated and indispensable. The clear property rights structure is the basis of a rational organizational structure and incentives .It is the core of modern corporate governance structure.With our banks open to the world,banks particular commercial banks intersify its pressure.The study of the bank property rights structure is an urgrnt matter.The Shareholder Primacy Theory proposed by many property rights researcher is hardly convincing. The mode of Stakeholders share property is difficult to obtain a correct understanding. So in my paper, i will combine the extension of GHM model by economists to analyze the configuration structure of property within the bank, try to gain new understanding:credit,research,marketing knowledge owner master the important control of presidual rights.
A Research on Relationship between Regional Financial Development and Regional Economy Growth in XinJiang Principal Function Region
Since the “Eleventh Five-Year Plan” has been implemented, the role of the regional financial development takes more attention by scholars along with the advance of the principal function region. The regional financial development of the principal function region not only has the integrated function of economic growth, but also has played an important role in resolving the bottleneck of resources and environment, adjusting of industrial structure, promoting infrastructure facilities construction, maintaining and retorting ecology, etc. Meanwhile the relationship between the regional financial development and the principal function region will catch attention of scholar. Therefore this text will discuss the relationship between the financial development of the principal function region and economic growth in XinJiang.This text bases on the theories of financial development to analyze the theoretical foundation of the relationship between financial development and economic growth of principal function region in Xinjiang. By using the theory of financial deepening, the theory of financial supply and demand, and the theory of financial cause and effect, this author gives theoretical explanation for the relationship between financial development and economic growth from different angles. By dint of the finance-rise linkage AK model,this author finds motivations of economic growth, and cleans the growth function of the construction of principal function region, so as to provide theoretical foundations on positive analysis and policy proposals.In chapterⅢ, this text analyzes the financial development of the principal function region and the status quo of the economic growth in XinJiang, and finds the unevenness of the economic growth in developing the principal function region of XinJiang, and there is difference in financial development. The Theil-index indicates that this kind of difference is broadening every year. This text analyzes the reasons of the unevenness between finance and economy in principal function region of XinJiang based on the practical its reality.There are differences between financial development and economic growth for the principal function region in XinJiang, but the points are if the regional financial development adapt the needs of economic growth and what kind of relationship between them. Those are the main idea of chapter IV and the emphasis of this text. In chapter IV, the author analyzes empirically the relationship between the financial development and the economic growth in the three types of region by using cointegration, Granger causality test, Var model, variance decomposition, etc. The conclusion is faster economic growth links to rapid financial development. In the short time, the region optimized to be exploited and the region stressed to be exploited in XinJiang belong to “supply-led” financial development, and the region restrict to be exploited belongs to “demand-pull” financial development. For a long time, the region optimized to be exploited and the key zone in XinJiang will promote the economy, the optimization zone also will promote the finance, but for the region restrict to be exploited, it is vague between the development of finance and the growth of economy in statistics, finance lags behind economy and it just passively adapts to economy.With the purpose of giving full play to regional finance in economic growth of the principal function region in XinJiang, the author suggests the government supply the inclining finance policy and the fiscal policy coordinates with it. At the same time, the government should develop small loan companies and small-medium sized banking institutions, and set up more specialized financial institutions on regional policy. They can effectively level up the regional financial development in XinJiang, promote the economic growth of the principal function region; furthermore, stimulate the deepening of the financial sector.
Study on Financial Support for Agricultural Industrialization in Xinjiang
Agricultural industrialization is the indispensable way to realize the transformation of traditional farming, it makes agricultural marketization、enlargement and intensity, promotes the rural areas on a flourishing, leads the farmers move steadily toward prosperity. Since 1995, the Agricultural Industry in Xinjiang has played an improving role in accelerating the economy development in the rural area increasing farmers income and new socialist countryside construction,it has important strategic significance to enhance the international competitiveness of agricultural products in Xinjiang. However, compared with the whole nation, the industrialization of agriculture development in Xinjiang remains relatively stagnant, difficulties financing and the shortage of funds were the biggest obstacles in the development of agricultural industrialization.Therefore, in order to solve Xinjiang Agricultural Industrialization financing problem effectively,this paper through theoretical study and empirical analysis, makes rural finance theory and agricultural industrialization theory as a guide, take the financial support of agricultural industrialization into consideration to the rural financial system, and empirically analysis the contribution of financial resources of Xinjiang’s agricultural to the industrialization of agriculture conducted in 1985-2008 years by establishing a regression model, and shows that some part of the agricultural financial resources have supportive effect for the promotion of agricultural industrialization development. In the theoretical analysis and empirical basis of the analysis, the article first makes a detailed analysis of the problems in Xinjiang’s agricultural industry financial support as well as their reasons, finally according to these problems, puts forward the corresponding proposal.The view of this paper in the main key of Xinjiang Agricultural Industrialization financial support is the Agricultural Development Bank, Agricultural Bank of China, rural credit cooperatives and agricultural insurance system. The problem and their reasons which exist in the progress of the subjects providing financial support for agricultural industrialization are:the narrow range of business of Agricultural Development Bank, loss of service function of agricultural industrialization; the operating shift on strategic focus of the Agricultural Bank, the weakening on the agricultural industry services, the weakness of rural credit cooperatives themselves, the powerless to support the industrialization of agriculture; the lack of a sound credit rating system and the credit guarantee system, the constrainting of positive credit investment by the inherent inferiority of agricultural industrialization, the difficulties which agricultural insurance business is facing,the hysteretic development of agricultural risk compensation mechanism.To the existing problems, the proposed measures are:giving full play to the policy financial functions of Agricultural Development Bank,expanding support link; Agricultural Bank of China should bring their superiority in supporting agriculture to provide full-service development for the agricultural industry; deepening the reform of rural credit cooperatives, put them into great play as the main force consummating agriculture-related enterprises and fanners credit management system; improving the agricultural credit guarantee mechanism, providing protection of financial policies of agricultural industrialization; establishing agricultural risk protection mechanisms, reducing the risk of management of agriculture industrialization.
Civil and Commercial Law (with Equivalent Educational Level Academic Qualification)
Simply speaking, pledged account receivable is a way to obtain the loan from credit institutions such as banks by providing the pledged account receivable. Account receivables pledged finance is a method combining the account receivable management with credit finance. It activates the financing capability of the account receivables of enterprises, on the other hand, it does help the small and medium enterprises (hereafter refer to as”SME”) to broaden their diverse financing channels and enhance their competitive forces under the condition of lacking of the immovable securing resource. The commercial banks’account receivable pledged finance business is practical and promising in reality, which to some extent relieves the SME’s financing difficulties and provides a feasible solution program.This article starts from the introductions of account receivable and pledged account receivable. Then it analyzes the financing difficulties of SME in our country and further reveals the feasibility of the development of the account receivable pledged finance business in commercial banks. On this basis, this article analyzes all the legal relationships involved in pledged account receivable, especially focusing on the specific relationships between pledgor and account receivable debtor, pledgee and account receivable debtor. Then this article discusses the deficiency of account receivable legal system of the commercial banks in our country, by reviewing the legal concept of account receivable, the propriety of the registration system, the arrangement of the notice rule to the account receivable debtor and the realization rule of account receivable pledge. Furthermore, it points out the potential legal risks induced by the pledge object value, underlying contract, the subject s’right performing and so on. At last, this article proposes the constructive suggestions of the prevention to the pledged account receivable legal system, which includes the thinking of the improvement of the legal system and the enhancement of the risk prevention measures in commercial banks’business practice as well.
Research on the Risk Control of Real Estate Investment Trusts
In recent years, the real estate industry in China is developing rapidly in the process of urbanization construction supportted by the government, however, it still encounter financing bottleneck behind the flourishing. For the lack of a viable investment channel reluctantly, People’s investment enthusiasm in real estate was wasted while personal savings is rising year after year in our country’s banks. On one hand, the real estate industry is short of money, on the other hand, People have no place to invest by using savings, how to solve these two big problems at the same time for society’s more healthy development? It has been greatly expected to solve these two big problems when real estate investment trusts was introduced as a new financing tool since 2003. However, every financial instruments has its risks, and the risk control is often believed to be the key of returns. As a product of asset securitization, real estate investment trusts contains lots of risks which are interweaved, such as the real estate market risk, the capital market risk and the fund operational risk. But no matter in theory or practice, the period of study on real estate investment trusts in our country is not long, and the law related is not uniform, not to mention the risk control system which is almost blank. Therefore, the demand for study and establishment of China’s real estate investment trust is very pressing as it will be tried right now. For this reason, I try to explore the legal construction and improvement of risk control on China’s real estate investment trusts by analyzing its current situation and existing problems about legal system and taking risk control systems of main Countries & Areas to be compared, as far as possible to reduce all kinds of risk that may arise during its process and to protect the interests of investors. This paper is focused on system designing and scheme supporting for legal construction and improvement of risk regulation system:in system designing, it mainly includes the consummation of trust registration system, the qualification authentication of administrator and custodian, the internal management mechanism of administrator and investors, the management regulation of project of administrator and the improvement of Information disclosure mechanisms; in scheme supporting, it mainly includes the building of special legal system of real estate investment trusts, the designing of the reasonable fund tax system, the establishing of fund secondary market, the cultivation of institutional investors, the perfecting of external supervision and the establishing of risk monitoring system.
Virtualization Techonlogy and Its Application in Finacial Institutions
Virtualization is an abstract concept that devices are running in a virtual environment rather than a real one. It separates the physical hardware from the operating system so as to provide higher resource utilization and flexibility. The virtualization technology has almost six dacades of history. Now it consists of server virtualization, storage virtualization, network virtualization, and application virtualization technology. Virtualization can improve the efficiency of computers, reduce costs and energy consumption, simplify system management, and improve reliability, availability and security. It is one of the tools to accomplish green IT and establish an energy-saving society efficiently.This thesis firstly introduces the current status of banking and other financial institutions in the information technology development and studies these issues. Secondly it proposes applying virtualization technology to financial institutions in order to solve these problems. It chooses different virtualization solutions against various application scenarios and features in the financial institutions. Finally, it analyses feasibility of deploying cloud computing to the financial institutions based on current IT infrastructure, and solve the issues by private cloud computing in terms of its advantage, which are not able to be done merely by virtualization technology, in application of financial insitution.
Research on Personal Financial Services Risk in China’s Commercial Banks
Personal financial management is the process that commercial bank helps its customer to realize his goal by utilizing his own financial resource. The commercial banks analyze the customer’s financial data such as income, expenditure, assets, debt, insurance, cash flow, and assets value, consider various kinds of financial goals of the customer’s synthetically, and carry on the test of customer’s risk partiality and adjustment of investment combination in order to help the customer make individualized financing plan, recommend the financial product, provide finance management report.With the socio-economic development, people are free to income levels and increasing disposable assets, and people’s personal financial needs of an increasingly vigorous, together with the bank’s own business philosophy change in business between personal financial services in particular are becoming the banks of the focus on business and personal financial services in the Personal Financial Services has become the bank to attract high-quality high-end customers, and expand market share and increase profits, one of the core business. However, the basic law accompanies the risks and benefits of financial sector development. Especially in the current period of turmoil in international financial markets. The financial crisis intensified, the further spread of global pessimism, the financial crisis in large-scale “invasion”, the global corporate and investment market is facing a major disaster like China’s commercial banks to launch the beginning of fiscal Products Product suffered a severe fiscal crisis of credibility, consumer complaints growing. From a variety of complaints, we is not difficult to see China’s Commercial Banks, Personal Financial Services in risk control, inevitably faces some difficulties and problems. Commercial banks in the product pricing and risk hedging, the lack of scientifically sound risk management measures; the way in the course of business, financial product sales, management, use of such funds needs to be further standardized. On the goods themselves, the financial products have also concentrated on the credibility of the crisis has exposed Products, product design bottlenecks, and risk assessment are too general and so on, these problems exist, a direct impact on the healthy development of financial products. Therefore, in carrying out the process of Personal Financial Services, how to guard against the risk of becoming China’s commercial banks face the very important issue. The CBRC promulgated the “Commercial Bank Interim Measures for the Administration of Personal Financial Services” and “commercial bank Personal Financial Services Risk Management Guidelines” clearly pointed out that commercial banks should be in accordance with customer benefits and risks of the principle of affordability, carefully carry out their duties of Personal Financial Services and commercial banks to carry out financial business financial business must address the characteristics of the development of appropriate risk management systems and internal control system. In this paper, China’s commercial banks from the point of view to explore the personal financial business risk issues, is extremely practical and research value.This article first analysis commercial bank Personal Financial Services outlined the background and importance of the development, an analysis of commercial bank Personal Financial Services of the main risks. And analysis of commercial banks Development of Personal Financial Services, problems and constraints, based on the improvement of risk management policy recommendations, from the perspective of the new commercial banks, the China’s commercial banks to enhance risk management, Personal Financial Services is not only necessary to improve macro-financial environment, the most critical is that commercial banks should establish a correct their own personal financial business risk management concept, a sound personal financial business risk management system, improve personal financial management business areas such as risk management techniques to improve the environment. Are to train specialized personnel in particular, which are commercial banks, Personal Financial Services enhance core competitiveness, reducing personal financial risk of an important means of business. I would like to hope that through this article, draw attention to China’s Commercial Banks, Personal Financial Services to reflect further on risk prevention.
Analysis of Hydrochemical Characteristics and Delineation of Groundwater Protection Area in Siboshu Well Field
Siboshu well field is located at the northern loess plateau and the belt on the edge of Maowusu desert, JingBian County, Shaanxi Province. Due to the arid and semi-arid climate, the shortage of water resources has became a major factor that restrictes the construction of chemical energy base in the well field,or even affects local people’s normal life. Groundwater, as an important composition of water resources, is themain water resources for agricultural and daily uses there. In recent years, urbanization and construction develop very rapidly. Howver, the pollutants made during this processes turn to be a significant threat to the Siboshu well field. As the population grows fast, local people’s demands of ground water are increasing so sharply that the excessive exploitation leads to decline of watertable.Therefore, it’s very crucial to establish a groundwater protection area there to maintain the quanlity and storage of groundwater there. In this research, the geological conditions and hydrogeological conditions are identified by investigating the secondary data and doing field work. The groundwater samples collecting from study area are analyzed simplily and totally to assess the environmental quality of groundwater and the chemical characteristics are checked out. Combing the numerical simulation of groundwater flow with the distances from a certain point to the well point calculated by reverse particle tracer simulation method, the scope of different levels of protection areas are determined under the time standards. Based on the comprehensive analysis of the chemical characteristics and assessment of water quality, this paper does lots of researches on delineanating Siboshu groundwater protection area and achieves the following results:(1) The hydrochemical characteristics are discussed on the two caterigries respectively, that of phreatic water located at the north of Shuanghuochang-Guanlupan-Luhe Line is very simple and mainly is heavy carbonated water, namely HC03-Mg·Ca or HCO3-Na·Ca, that of the south of this line in the area of Shuanghuochang and Dahewang is mainly HCO3·Cl-Mg·Na.The confined water’s hydrochemical characteristics are HCO3-Ca·Na and SO4·Cl-Na·Mg respectively.(2) This research selects eighteen indicators including temperature, pH, total hardness, TDS, ammonia nitrogen, Mn,Pb,and so on,which can reflect the situationof groundwater environment.According to the groundwater quality standards (GB/T14848-93),this research evaluates fifty-two samples, including thirty-four phreatic water samples and twenty confined water samples by using single index evaluation and comprehensive evaluation methods. The results show that the quanlity of groundwater at the northern part of study area, namely the northern part of Shashimao-Huhuochang-Guojiaomiao-Haizepan line, is pretty good and its TDS is lower than 0.5g/L. That of the southern part of this line, which include Shuanghuochang, Guanlupan, County seat and both banks of Lu River is commonly poor and TDS is between 2-4.84g/L. In one word, the quanlity of confined water is commonly better than phreatic water in the study area.(3) This research establishes the numerical modle to simulate the groundwater flow, then, the Reverse tracer function of Modpath is applied to calculate the migration distances of pollutants from a certain point to the well in 100 days and 25 years, which are delineated as first and second level protection area, and third level area is the recharge and runoff area. Based on the calculation results, the area of first level protection area is 0.43 km2, which is the scope of radius 50m as the pumping well the center. The area of second and third level protection areas are 57.13 km2 and 137.34 km2. The protection measures are also proposed to maintain Siboshu water source field.
Model of Electronic Commerce Taxation in China
While electronic commerce brings the efficiency and wealth to the human society, it also takes the effect on the tax implications which conduct for many years. The e-commerce has raised a serious challenge to the current tax policy, tax system, tax collection, tax law and international tax issues.E-commerce on the have raised a serious challenge. Different countries demonstrate different attitudes and propose corresponding tax measures to adapt and improve the development of e-commerce, to protect the financial interests. In China, electronic commerce has led to some serious problems, such as the difficulties in tax collection and management, growing of the tax revenue loss. Currently, e-commerce guidance policy is staying on the macro-level. There is no specific tax system. There will be inevitably results of the loss of state revenue and the block of fair competition between e-commerce and traditional transactions if our country does not introduce the e-commerce-related tax policies and measures.This article presents the multiple impacts of e-commerce on our revenue which includes the influence on the tax theory, specific taxes and tax revenues, and on the tax revenue of cross-border e-business. Taking into account the state of e-commerce revenue all over the world, this essay proposes the method of e-commerce revenue adapting the status in China, builds the model of e-commerce taxation which is suitable for the status in China and explores the specific ways to achieve the pattern. In addition, it also points that tax law should be improved and the e-commerce taxation should be incorporated into the legal system of China’s tax revenue.E-commerce in our country mainly includes three types:B2B, B2C and C2C. According to the differences in the main body of the e-commerce transactions, three models of c-commerce taxation are built for the different categories of e-commerce. In the B2B and B2C e-commerce, the trading carrier can be the e-commerce website of a sales enterprise, or a third-party e-commerce trading platform. Because of the differences between the two transactions, the specific methods of tax collection are distinguished in each model of e-commerce taxation.In the concrete realization of channel of the models, these points are revealed. (1) For the enterprises engaged in the sale in the traditional markets at the same time, the e-commerce sales can be treated equally as the sales in the traditional market, their tax collection can be comprised of two parts, which follows the approach to traditional sales tax. For the enterprises only engaged in internet trading and C2C e-commerce transactions, the traditional attribution of tax revenue to the provisions should be broke, the formal working group on e-commerce taxation should be organized in order to realize the unified management and guarantee the tax can be classified as state tax revenue. (2) In the process of tax registration and tax returns, the tax authorities and the business sector should cooperate broadly. E-commerce transactions could be dual monitored and the tax evasion could be avoided. (3) Based on the differences among the ways of the transaction, two kinds of e-commerce payment system which around the bank or third-party payment agency as the core should be built, in order to regulate the payment of e-commerce and to ensure the full tax. (4) The tax threshold for C2C e-commerce should be set in order to protect the personal interests of the seller and the healthy development of C2C e-commerce.
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Recent Posts
- Institutions Background, Leverage and Corporate Investment
- The Analysis of the Commercial Bank’s Property Rights Structure Based on GHM Model and Its Development
- A Research on Relationship between Regional Financial Development and Regional Economy Growth in XinJiang Principal Function Region
- Study on Financial Support for Agricultural Industrialization in Xinjiang
- Civil and Commercial Law (with Equivalent Educational Level Academic Qualification)