On The Net The Nature Of Interests Under The New Economic Environment

During the past decades, the definition of net equity (To evade confusion and ambiguity, the term "net equity" is employed throughout the dissertation, instead of owner equity) was not a convincing answer. The definition that most of us accepted often emphasize the measurement of net equity (the balance of assets minus abilities and seldom touch the nature of net equity) and seldom touch the nature of net equity. The extent of net equity only includes the rights of financial capital owners, not including the rights of human capital owners. This can not adapt to the change of accounting environment under knowledge economic. Net equity is not only an important basic concept in the accounting theories and practices, but also related to the settlement of some economic theories and practices.This dissertation uses the normative approach and tries to make the nature of net equity clear, which is based on Firm Theory. The structure of the dissertation is as follows:Chapter 1 introduces the background, the incentives, the approach, the content of the research and the structure of the dissertation; then distinguishes the related concepts and states the meanings of researching the nature of net equity.Chapter 2 reviews six traditional equity theories. After describing the six traditional theories briefly, we point out the characteristics and the limitations of these theories. The characteristics are as follows: different equity theory is suitable for different organization forms: different equity theory corresponds to different accounting equation; and different accounting equation reflects different accounting aim. The limitations are as follows: the traditional equity theory only explains net equity from measurement angle; the traditional equity theory doesn't consist with the change of accounting environment; it can't reflect the equity of human capital's owners; and it neglects the contractual concept about the mutual governance under knowledge economic environment.Chapter 3 gets two ideas about the nature of net equity from the view of Firm Theory: one is that the concept of net equity should reflect the owners' properties relationship; the other is that net equity in its economic nature is the residual claims ofthe properties entities. In this foundation, we get our conclusion at last: net equity is the residual claims of those entities who contribute to the enterprise a lot.Chapter 4 goes further on the basis of our research. This chapter states that the new change of the accounting equation, the recognition of the executive stock option and the relationship between net equity and "the new way of modernizing industry".[Key words] Net equity;Owners' equity;Equity theories;The nature of net equity;Residual claims;Stock option;Human capital;Human capital ownersthe properties entities. In this foundation, we get our conclusion at last: net equity is the residual claims of those entities who contribute to the enterprise a lot.Chapter 4 goes further on the basis of our research. This chapter states that the new change of the accounting equation, the recognition of the executive stock option and the relationship between net equity and "the new way of modernizing industry".