A Study On Risk Governance Of Local Government Financing Platform Based On Risk Society Theory

Local government financing platform become the power source of local government to develop economy since 2008.It plays an important role in coping with the global financial crisis and speeding up the process of urbanization.However,risk caused by the rapid expansion of debt has become a major issue for the government and banks.In the context of government transition and "steady growth",the risk of local government financing platform presents in a cumulative and superimposed situation.This is mainly reflected in the imperfect governance structure,inadequate restraint mechanism,unbalanced debt structure or the imbalance of risk allocation.Therefore,it is extremely urgent for our local government to governance the risk of local government financing platform under the condition of increased risk and repayment pressure.Risk social theory can ensure the smooth development of economy and prevent all aspects of hidden dangers which local government financing platform brings.All walks of life should pay high attention to the platform.As a new paradigm for research on risks,it examines the risk of local government financing platform from the perspective of institutional,cultural,system and environment.This paper takes the local government financing platform as the research object,and based on the risk society theory.It talks about the development of local government financing platform in China at the present stage.Firstly,according to the financing diversification of the local government financing platform,this paper gave the evaluation index of diversified financing structure risk.Furthermore,we selected 9 representative platform companies in China as samples.By using entropy method and ideal point method,this paper makes an empirical analysis on the risk of government financing platform.The advantage of this method is simple and easy,and is suitable for different platform companies to make reasonable evaluations.Then,it also generally analyzes the generation and regeneration mechanism of local government financing platform,in order to anatomies the cause of the platform rise deeply.Last but not the least,according to the objective evaluation of financing platform risk at present,this paper respectively views the risk of government financing platform from the institution,subject,perspective of the platform itself,and put forward specific measures of platform risk management.Through the analysis of local government financing platform risk in this paper,it is contribute to cognize the causes of platform risk form the risk social theory and expand the application of the risk social theory.It can provide guiding suggestions for China's platform risk management.