Analysis About The Regulative Policy Effects On National Security Market

Security market is one of the compositions of the national capital market,however, in recent years, the defaulting-regulation behaviors appear sometimesthough they are banned strictly. The scholars in china usually agree two regulativepolicies: one is increasing the information-exposure;the other is strengthening thepunishment intensity, but unfortunately, the result is not too obvious. The purpose ofthe research is to clarify what reasons confine the effects of regulative policies andwhich regulative policies are effective. The thesis aims at the enterprises that defaultregulations in the security market and is based on those enterprises' income and costfunctions as well as using the reputation-lost function and draw a conclusion thatincreasing the information-exposure is better than strengthening the punishmentintensity nowadays in China through analyzing defaulting choices and the effects ofthe two regulative policies. Meanwhile, the author suggested that the punishmentshould be strict but not be severe and increasing the information-exposure be the keyfactors. Wish such analysis is helpful to the advancement of the efficiency in thenational security market.