The Research On Equity Credit

The dissertation is focus on equity credit. The contents include such facets as how equity credit come into existence, why and how equity credit evolutes, the status quo of equity credit and the factors causing it, and so forth.The traditional theory emphasized that credit was simply the 'debit and credit' concept, and denied the credit characteristic of equity. Such point of view is obviously out of date now, and theoretical innovation is urgently needed. Some native scholars did describe the credit characteristic of equity, but systematical study is still absent. Stock markets have been developing rapidly throughout the world, and becoming an important factor in economy, however, there are continuous accidents rising up and baffling the development, such as Enron Accident in USA, Yinguangxia Accident in China. In such accidents, investors' benefits are shamefully sold out, their belief in the market terribly hurt, and the market damaged consequently. Considering such factors, the thesis is fairly valuable both in theoretical perspective and in practical perspective.The principle innovation of the dissertation is manifested in the following points: (1) brought forward the concept of 'equity credit' and gave a systematical discussion; (2) brought forward the concept of 'equity paradox', and gave an analysis on the 'equity voiding' trend and the characteristics of equity credit; (3) for the first time gave a definition to the concept 'equity credit', and divided it into two types, namely, principle equity credit and derivative equity credit; (4) for the first time illustrated both the theoretical and the practical meanings of shares liquidation; (5) demonstrated the ways in which the principle stockholders of China's listed companies infringed upon the small ones through a simple 'money collecting' game model.The main conclusions of the dissertation are as followed: (1) the so-called 'credit' is a property transaction based upon trust, ensured by contracts, and lasting for a considerable period. (2) the so-called 'equity credit' is a property contract as what credit is, and based upon the trust of companies' managers (directors included). The relationship between stockholders and the company in question is the relationship of equity credit, in which investors are creditors, and the company is the debtor. (3) the shares is a liquidation-seeking property, and the prejudice must be deserted that shares is in no need to be reimbursed and thus has no relation with credit; (4) laws and regulations are of great importance for equity credit maintenance and investors insurance, while the more important factor is the execution of laws and regulations.