The Formulation And Accounting Treatment Study For Consideration In Non-tradable Share Reform

Shareholder structure reform is a significant event in China's capital market. In order to solve the non-tradable share problems of turning non-floating stock into floating stock, it would happen that non-floating stock holders must pay consideration to floating stock holders for gaining circulation rights. From this perspective, the consideration is the core of the non-tradable share reform. This paper discuss the necessity and rationality with the theoretical support for the payment of consideration from five aspects including legal principle, institutional change theory, property right theory, and investor protection theory, and welfare economics theory. The reasonable consideration comes from the result of both internal and external factors. Therefore this paper will impact on the internal and external reasonable consideration for the two aspects from which to discuss the equity division reform of the consideration's formulation. Further, as the quantity of consideration influences all investors' benefit, therefore non-tradable share reform is also a game that all stakeholders take part in, including non-floating stock holders, floating stock holders, SAC and so on, as a result, non-tradable share reform will benefit from a fair and reasonable ideas of consideration greatly. This thesis first analyzed the irrational phenomenon that exist in the game for the interests of all beneficiaries' by game theory, and then put forward some reasonable proposals to create a fair game in the external environment. Furthermore, this paper analyzed the firms who have passed the non-tradable share reform with empirical method show that some consideration schemes were obviously unreasonable; in addition, the reasons why there were so many unreasonable factors in the consideration schemes from theoretical perspective were also explained. Based on the premise of that a fair and reasonable consideration is the important internal factor to ensure reasonable consideration's formulation, so a more reasonable project for the payment of consideration was proposed in light of the overall foreign stock valuation method called P/S.In the current condition of without any experience and references can learn from both domestic and foreign abroad, how to reflect the economic consequences of consideration paid truly in the accounting, with a better coordination with the international accounting standards, which has become one of the new academic challenges in Chinese accounting field faced. Based on international accounting standards coordination background, this thesis not only paid much attention to the...