Research On The Industry Regulation Of Assets Appraisal In China With Principal-agent Theory

Assets appraisal of our country develops gradually with the constant deepening of Reform and Opening-up and the perfection of the socialist market economy system. It plays an important role in speeding assets's flow, and advancing property right's exchange, realizing the resources distributed optimally, etc. During more than ten years development, asset appraisal industry of our country has become the vigorous component in indispensable socialist market economy. Appraisal Firms have become the intermediary organization which cannot be substituted. And the Certified Public Valuator (CPV) can be put in the same situation with the Certified Public Accountant(CPA) and the Attorney. Facing the serious financial cheats and the related false assessment events in recent years, the whole society begin to doubt the professional ethic of the CPV and the public faith force of asset appraisal industry has down to the unprecedented low point. It has been the focus that how to strengthen the industry regulation of asset appraisal.Based on the national conditions of our country and through analyzing a lot of cases, this thesis aims to find out the Chinese Characteristics way for the industry regulation of asset appraisal by using the Principal-agent theory.It consists five parts, the first part is introduction. It briefly describes the background and the significance of this thesis as well as the contents. The second part explains the main related concepts and introduces several mail regulation modes of assets appraisal. Also it puts forward the problems what we should pay attention in researching the industry regulation of assets appraisal. What's more, it puts the Principal-agent theory into the research on the industry regulation of assets appraisal and provides the theoretical reference for the consequent research. The third part makes a comparative analysis after introducing the domestic and international regulation mode of assets appraisal. During analyzing the typical cases and major industry inspection of assets appraisal of our country, the fourth part reaches a conclusion that the industry regulation of our assets appraisal are urgently needed reform and then use the Principal-agent theory to make research on it. At last, it pointsout that most of the problems in regulation are rooted in abnormity Principal-agent relationship and lacking efficient restraint mechanisms. After discussing and analyzing the root of these problems, the fifth part puts forward the relevant countermeasures. The first measure is to establish the right Principal-agent relationship, concluding establish regulation mode which taking China Securities Regulatory Commission (CSRC) as the principal part and changing the appointment system of assets appraisal;The second measure is to perfect the incentive and constraint scheme, concluding standardizing the charging of appraisal, developing the Limited Liability Partnerships, establishing reputation mechanism, etc.