Study On The Evaluation Of Financial Non-performing Assets

With the aid of those theories such as Evaluation of Enterprise, Economics ofInformation, Property Rights of Enterprise, Real Option and so on, this dissertationgives a comprehensive and elaborate study on the issue of evaluation inNon-performing Assets. The dissertation consists of four parts as the following:The first part, Chapter 1 generalizes the development and the current research state ofthose theories about evaluation of financial assets and enterprise, and summarizes thestructure, theoretical basis and contents of the dissertation.The second part, Chapter2, gives a systematical and complete study to theenvironments of the evaluation of the Non-performing Assets. After expounding onthe system design of the Non-performing Assets and analyzing on the systematicdefects, the writer applies the theory of Information Economics and the propertyrights of enterprise to propose to establish the specific system environment ofevaluation study on non-performing loans.Part 3 includes chapter 3, chapter 4 and chapter 5. In chapter 3, based on the theory ofEnterprise Value, Enterprise Insolvency, Real Option, the author has put forward thetheory and the techniques of how to evaluate the Non-performing Assets. In addition,the author illustrate a theory of evaluation by believing that the value ofNon-performing Assets is composed of fundamental value and option value. In orderto settle the problem of how to evaluate the fundamental value of the Non-performingAssets, chapter 4 advances the approach of simulated liquidation to evaluate thefundamental value of the Non-performing Assets. After the comprehensive statementsof the theories on which the approach has relied, it studies and designs the evaluationprinciples and procedures of simulated liquidation approach. Regarding the optionvalue of the non-performing assets, in chapter 5,the author has formed the analysisframework about the theory of option value of Non-performing Assets and theapproaches of evaluating real option, which based on the statements and summaries ofthe elementary principles of Real Option and its pricing.Part 4,chapter 6,the dissertation explores the economic analysis on Swapping debtsinto equity, the key issue of the evaluation of Non-performing Assets, including theprice and the proportion of Swapping debts into equity, establishment of the standardfor those enterprises to make reasonable choices, and providing calculation method onpricing as well as assessing proportion of Swapping debts into equity. At the end of the dissertation, conclusions and prospects to future research aregiven.