| As one of the core elements of Modern Corporate Management Theory, the finance management has been dubbed with the "pearl on the crown of the corporate management". After stages of unremitting research by some outstanding virtuosos in this field, it has developed into a mature subject with multiple theoretical ramifications in depth as well as pragmatic applications in sundry industries in width. And one of these applications is the finance management in life insurance industry.China has witnessed an amazing bloom in life insurance industry in the wake of her reform and opening to the outside world policy. Accordingly, tremendous developments have been achieved in theoretical research regarding to the management of life insurance company, especially as far as finance management is concerned. Due to its unique attribute that the object managed is the long-term risk related to people's life and the contingency of cash flow owning to the stochastic indemnity, life insurance industry has more to care about in strategic financial decision-making process. To the extent of operational level, it is not exaggerated to say that finance management is the fulcrum in life insurance company.The main topics concerned in the thesis are followed hereafter in logical sequence as:(1) The organic system of the Modern Finance Management Theory (MFMT) and some of its fundamental theories. As to the system of MFMT, several issues have to be attached great importance to. The first issue boils down to the research on the pricing of the security based on the theoretical outcomes of the financial economics. The second issue pays attention to the numerous leverages on the corporate value brought about by different financial decision-making progress. Another issue dwells more on the technical analysis on short-term finance and investmentmanagement. Out of the issues mentioned above, six theories derived from the MCFM are naturally put forward. They are: the Agency Theory Under the Asymmetrical Information Condition, the Capital Market Efficiency Hypothesis Theory, the Investment Portfolio Theory, the Capital Asset Pricing Theory, the Option Pricing Theory and the Capital Structure Theory, each is of great value in the finance management.(2) The main financial activities in life insurance company. To facilitate the analysis hereafter, a whole paragraph is used to clarify the definition of life insurance company from every important angle. Then, as hinted in the topic of this part, several corresponding financial activities of life insurance company are expanded at large. After that, we shift to the analysis of the singular attributes of life insurance company within the following two profiles: one is the liability attribute of life insurance company which differentiates itself from other enterprises in that the main liability of life insurance company exists in the form of reserve, the other is the asset distribution attribute with the fixed-yield security strategy at its core which is stemmed from the long-term comparatively smooth cash flow before the maturity of the insurance policy. (3) The connecting mechanism between the MCMT and financial activities of life insurance company. Some relatively complicated mathematics tools are indispensable in the deduction process in this part. Given a series of strict hypothesis, we can draw our conclusion from the outcomes of the mathematics deduction. The first significant conclusion here is that both the owner and the policyholders of the life insurance company are unexpectedly indifferent of the capital structure of the company in case that no corporate tax is mandatory. But if we make the hypothesis a little looser and assimilate the corporate tax factor into the deduction process above, what we can draw now is that the rational decision-maker of the life insurance company will operate the enterprise with as small equity as possible to make the tax-shield effect as larger aspossible. To go further a little, we may make the hypothesis even looser by absorbing... |
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