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Research On Role Conflict Of Securities Market Intermediary

Posted on:2017-05-29Degree:DoctorType:Dissertation
Country:ChinaCandidate:N N LvFull Text:PDF
GTID:1226330482994154Subject:Economic Law
Abstract/Summary:PDF Full Text Request
The main point of this article is role conflict of securities market intermediary and its solution. As a highly specialized field of capital raising and trading, the securities market has strict requirements on the authenticity of information. Disclosure of information authenticity is the basis of its existence and development. However, it is very difficult for most investors to judge if it is true for the information disclosure. They need help from those specialized parties such as lawyers and accountants who work in the capital market. Their professional judgments will ensure the truth of information. For this point, securities market intermediary do a great multitude of work and contribution to construct the development of capital market.However, what we should pay much attention to is the role conflict of securities market intermediary. For one hand, the intermediary being employee of those listed companies and for another, they must do audit to supervise those listed companies for the investors. Under such conflict circumstances, it’s very hard for the lawyers and accountants do their best on work. The conspiracy between market intermediary and listed company become very possible. The original role and task for the market intermediary is to being “gate keeper” in the capital market ensuring the truth of information disclosure, because of their professional knowledge and specialized skill. But when the gate keepers work in the capital market, there is role conflict around them, due to their rational economic man consciousness. Therefore, the so called work of the capital market intermediary accelerate bad situation of information disclosure and even the whole capital market.The two aspects of role conflict of securities market intermediary are conflict of professional ethics and conflict of behavior interest. The conflict of professional ethics is based on principle of commission contract and the foundation of behavior interest conflict is deviation between ought action and factual behavior of market intermediary as a rational man. It’s not only China’s unique problem but also existing in those developed countries. There are some similar characteristics between China and its counterparts on the solution towards role conflict of securities market intermediary. This role conflict based on the relationship among those three parties in securities market, which are contract relationship between market intermediaries and listed companies, tort relationship between market intermediaries and investors as well as relationship among those market intermediaries. Based on these relationships, the conflict can be divided into two different types, which are conflict on principle of commission contract, showing as accounting dispute and fuzzy law, and conflict on audit and adversary staggered business.We could design solution towards this conflict from the following three aspects—administrative regulation, judicial litigation and industrial autonomy. Under the administrative regulation, changing method of payment, relationship of commission and strict punishment to reputational capital of market intermediary are the way to resolve this problem. From judicial litigation perspective, plaintiff qualification, scope of damage compensation and securities class action are the way to solve this problem. On the aspect of industrial autonomy, the source of autonomy right, its implementers and right of punishment towards its members will be discussed. The essence of this solution is, based on rational man’s behavior, creating way of solving the problem on the way of evolution rationalism, which is necessary to solving the role conflict of securities market intermediary.The mechanism of compensation in advance is also discussed and responded to some extent. It is significant for solving the role conflict problem of market intermediary to construct prevention mechanism by separating audit and adversary business from the same market intermediary.
Keywords/Search Tags:Securities market, Market intermediary, Role conflict, Solution, Information disclosure, Private rationality
PDF Full Text Request
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