The Research Of Financial Contract And Its Compliance Mechanisms

Since investor protection was put forward,many people have research the problem,usually focusing on the relation between factors affecting investor protection and financial development. In particular,many researches focus empirically on the relationship between legal protection and capital market development,one-sided emphasis on the importance of legal protection,yet lack a comprehensive analysis of multi-disciplinary perspective including economics,law,etc,and lack a kind of historic vision.In my opinion,investor protection is a natural result of being fulfilled, therefore this paper focuses on financing contract and performance mechanism.This article first discusses the origin of the issue of investor protection and the economic substance of the rights of investors,analyzes the relationship between investor protection means. In order to understand investor protection,this article takes financing contract as a start of logical analysis,discusses its incomplete.For solving this,we can start from contract itself or its performance mechanism,but we pay more attention to the latter.We divide the means of investor protection into self-performance,third-party private performance,and mandatory performance,and then we discuss the three mechanisms function and their relations.I believe that in order to grasp the dynamic relationship between a variety of compliance mechanisms,the theory can not be limited to static analysis,and a simple theory does not explain slightly less than a complete character,so we discuss the evolution of performance mechanism from a historical perspective.Finally,we analyze Chinese investor protection.Through the analysis,the main conclusions drawn are as follows.Some researchers,such as La Porta,define investor protection too narrowly,because financing lease has a multilevel nature of compliance mechanisms,and they have their own advantages and limitations.Different mechanisms have complex relationship.In common law countries,judicial discretion can not reach a comprehensive law,and regulate is inevitable.The mandatory performance mechanisms become increasingly prominent role,but the process of historical evolution is long.The innovation includes the followings.Xu Chenggang found theory to explain the cause of regulation,but the limitation of legislation before securities laws has not be analyzed sufficiently in his theory,then we try to do this work and indicate that securities regulation is bounded to arise.Compared with the logical analysis,historical analysis is often not based on clear theoretical premise,but has its own value.Mainly based on Anglo-American history,this article discusses the evolution of investor protection mechanisms,analyzing that the status of mandatory compliance mechanism highlights in the process.Then,we indicate the changes in investor protection mechanisms.