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On China's Investment Bank Reputation Mechanism

Posted on:2007-02-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:H YinFull Text:PDF
GTID:1119360215477474Subject:Business management
Abstract/Summary:PDF Full Text Request
By answering why there is reputation crisis of investment bank in China, and according to the reputation theory,investment bank reputation theory,Information Economics,game theory,new institutional economics, this dissertation analyzes how the reputation formation mechanism performs function, discusses the validity of formation mechanism and studies the polices of how to reestablish investment banker reputation in China.This dissertation defines investment bank reputation mechanism, points that reputation mechanism is constitutive of formation mechanism and function mechanism. Investment bank reputation mechanism is a concept that reflects the dynamic process of formation,maintain and action. Researches in west countries regard developed stock market as exogenous variable, but the emergency stock market in accord with background of institutional change form different game rule in China. Is the formation mechanism still in effect under this game rule? On the basis of new institutional economics, this dissertation points that there are some reasons that lead to the formation mechanism invalidation. These reasons include: the game between investors and investment bank is non-repeated, the trigger strategy is lack of feasibility and creditability, and the third-party enforcement mechanism is noneffective. The empirically research on the IPO date from 1996-2004 in China stock market verifies the assumption that the investment bank reputation formation mechanism is invalid in China.In order to achieve efficient equilibrium, reestablish investment bank reputation in China, the most important thing to do is change the game rule that means institutional change. First, the stock market must be innovated and reformed; second, a series of reformation should be carried to repeat the game between investors and investment bank, reactivate trigger strategy and let the third-party enforcement mechanism to be in effect.
Keywords/Search Tags:investment bank, reputation mechanism, game rule, repeated games, trigger strategy, third-party enforcement mechanism, market share
PDF Full Text Request
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