Enterprise Honesty Of Economics Research

Credibility and integrity is known as the foundation stone in the development of market economy. Socialist market economy is the market economy at the same time the honor economy. It is the foundation that an enterprise should insist on its credibility principle. However, with the limitation of market mechanism, the lack of credibility of a corporation is getting severe.This article aims to discover the problem of the lack of credibility, the performance of enterprise, the harm to the enterprise, the reason of that and the solution to the problem from the angle of economics. This essay borrows the fruit of the some research from the pioneers and is in accordance with the pattern "’Put forward the question-Analysis of problems-solution to the problem". Firstly, it points out the performance of enterprise, and research that the lack of credibility will affect both customer and corporation. What’s more, it will do harm to the distribution of resources. This article then applies the theory of cost and income to analysis the reason to the lack of credibility of an enterprise.This essay makes a hypothesis that an enterprise is a reasonable person who chase for the maximum interest and holds that the essence of the lack of credibility is acceptable in a limited condition. Thus, this essay makes a formula of enterprise credit management as the research condition. It held the phenomenon roots in the earth of the enterprise credit management in real life. Thus the lack of credibility is based on the formula above and the best choice of an enterprise in consider of costs. Furthermore, this article uses the expected utility and proves that a reasonable corporation would arrange their time rationally——some would be applied to credit management and some the lack of credibility——to seek for the maximum profit. According to this theory, on the condition of utility function of enterprise, the enterprise should take the formula of the lack of credibility to enrich their benefit so that the actual income could be less than the retained earnings——the minimum income of the adding hourly basis. The application will not be stopped until it prevents the lack of credibility in operating activities.Based the analysis above, this essay holds that the solution to the problem of the lack of credibility can be classified as follows:the up-grading of the loss and the extra cost caused by the lack of credibility, the debase of the imbalance of the information between client and enterprise.