The Root Causes Of The Lack Of Corporate Credit And Governance

During the transitional period of China, some social and economic problems are emerged inevitably because of the conflict between the new system and the old. Among These problems, the credit problem is particularly serious. Credit, which is the cornerstone of the market economy. And the enterprises, as the most important body of the market, their credit situation is of great importance to the development of socialism market economy. However, the phenomenon of scarcity of credit exist widely in some enterprises, and it has been a "neck of bottle" restricting the development of national economic. Therefore, it is not only a practical demand but also an unavoidably important subject in the economics investigation to systematically analyze and search into the enterprise credit problem.The article adopted methods of the integrating theory searching and policies probing, and combining normal analyzes and living example and so on investigated the problem of the scarcity and harness of enterprise credit. First, it defines implication and extension of enterprise credit and expounds its character and function. Second, it analyzes the present credit satiation of the enterprise and reveals scarcity of enterprise credit in all its manifestations, and then points out its harmfulness. Third, it probes into the cause of formation and root of the scarcity of enterprise credit by the means of the game theory and information economics. At last, combining the actual conditions of economy in our country at present, it expounds the institutional factor, which caused the scarcity of enterprise credit, and tries to explore the countermeasures to solve the problem of enterprise credit.In this article, the enterprise credit refers to enterprises behavior of keeping promise and carrying out the contract. Although it involves some content about the ethics, sociology and the science of law and so on, but it is a problem of economics in nature. The enterprise credit, which is an invisible property, on the level of macroscopic, can lower transaction costs and expands transaction scope. On the level of microcosmic, credit is an important competition meant for enterprise, it is approach which helps to improve the ability of enterprise to attract investment and gather fund. Therefore, it is the foundation for enterprise on which to create good outside management surroundingsand inside enterprise culture. However, lots of enterprise ignore the significance of credit and brought out plenty of anti-credit behaviors that not only cause heavy economic losses but also disorder the market, destroys the investing environments and hinder the process of marketwise .So it is not nearly enough to attribute all fault to immorality and reveal the reasons only from the point of ethics. Referring to moral factor, the author tries to extend the field of vision and probes into the root of the scarcity of enterprise credit from the point of economics principally. Through economic analysis it shows that the course of enterprise management is actually a course in which the enterprise games with all kinds of bodies of market. The policymakers of enterprise who are rational economic men, choose keeping promise or breaking promise according to which one can bring supreme profit. At the market surrounding that information is asymmetric and game is not repeated, the profit breaking promises bring tend to exceed what it costs, thus it is a rational choice for enterprise to choose breaking promises. The really root of the result arising is not the morally degeneration, or the charter of china culture, the evils inherent in market economy. In the transitional period of the planning economy to the market economy of China, the old institutions of planning economy is withering away, but the construction of the new institutions of market economy is relatively lagged behind. Therefore, the scarcity of credit comes from the "hazy belt" at the crossroads of the new institutions and the old institutions. Without the restriction of clear institutions, enterprises are bound to t...