A Study On Financial Contract Theory Based On Dual Attributes

Thinking of contract is very extensive and profound. It has a long history, and has penetrated into all aspects of the contemporary social and economic live. Following with this, the research of contract theory is continuous; modern contract theory is the most excellent. As an important school of modern contract theory, financial contract theory is effective combination of modern contract theory and finance which is the core element of modern enterprise, and increasingly become focal problem in practical and theoretical circles. People use thinking of contract to research financial problem. At the same time modern enterprise theory and financial theory is undergoing a profound transformation. The financial characteristic of financial contract has decided that the transformation produce important effect in financial contract theory. Financial contract theory which based on financial theory can guarantee the integrity of its theoretical basis. Unfortunately, the existing research of financial contract theory has not pay attention to this point sufficiently. According to the development context of modern enterprises and financial research, this article proposes dual attributes of financial contract on the basis of research results, and has carried out an in-depth analysis, trying to build a system of financial contract theory which based on dual attributes.A scientific and complete financial contract connotation is the basis of financial contract theory research. The contract characteristic of financial contract has decided that it is important to research the general characteristics of contract and the nature of enterprise contract. The financial characteristic of financial contract, when we research the connotation of financial contract, we must reveal the economic nature of modern finance, master the nature and phenomenon of modern finance comprehensively.Like the division and integration of enterprise theory, modern financial research paradigm has gone to the logic of "integration of value and power" from the logic of "value supreme". Dual attributes of finance performance the financial basic theory system of the integration of value and power in theory. In practice it performance two financial operating systems that is financial management and financial governance. Financial management is the operating system which focuses on dealing with the value; financial governance is the operating system which focuses on dealing with the power. The integration of financial management and financial governance composes of modern financial operating system.Dual attributes of finance have decided that the meaning and content of financial contracts which based on the financial basis must be considered on the two angles, which are very important for understanding the study scope of financial contract comprehensively and making the relation of financial contract and other contracts clear. At the same time, dual attributes of finance have also decided financial contract having double attributes: "production attribute" and "system attribute". "Production attribute" of financial contract refers to financial contract affecting financial activities of enterprises directly and indirectly, so as to play its function of financial management; "system attribute" of financial contract refers to financial contract coordinating relations between stakeholders, so as to play its financial governance effect. However, dual attributes of financial contract are not separated completely, but unified in a contract; they status more like two research perspectives in the status of academic study.The core elements of "system attribute" performance financial contract allocating financial rights, on one hand, it is initial configuration of financial rights from the existing financial contract, on the other hand, it is through optimal design of existing financial contracts to achieve the re-allocation of financial rights; "system attribute" performance the governance effect of financial contract. "Production attribute" requires that when we research the financial contracts, except considering the characteristics of financial behaviors, we have to analysis the effect of financial contract to financial behavior, such as investment behavior, financing behavior and income distribution behavior.Researching financial contracts must take dual attributes as logical starting point, accordingly structuring operating system of financial contract. The thought of financial contract design can be divided into "system attribute" thought and "production attribute" thought, we not only consider its "system attribute", but also consider its "production attribute". How to ensure the self-fulfillment of contract of is the focus of the implementation of contract, effective way is to improve the loss of the participants in contract, the loss of breaching contract can be divided into "production attribute" loss and "system attribute" loss. Realizing and increasing the loss of breaching contract must satisfy certain conditions, analysis of those conditions will brings enlightenment for designing financial contract. When raising the loss of breaching contract is limited we need mandatory fulfill from third-party. Incomplete contract would result in the renegotiation on financial contract. The concrete reasons of renegotiation can be divided into "conditions change" and "self-improvement"; each reason can be divided into "production attribute" factor and "system attribute" factor, we must consider two factors comprehensively to adjust financial contracts.