Studies On Practice Risks Of Asset Evaluation

Having developed more than 20 years,asset evaluation has played a great role in the area of state-owned asset management, capital market, construction of securities market and joint venture cooperation etc. As a result, it has become an indispensable intermediary of our socialism market economy system. In recent years, the number of agencies of asset evaluation and related evaluators that are involved in litigation increases continuously, which to some degree hampers the development of asset evaluation industry. The occurrence of more and more litigation indicates that the risk of the asset evaluation industry is as high as that of CPA. As a result, both the evaluation agencies and related evaluators and the management departments are looking forward to finding ways to avoid the risks to decrease the the number of such cases, no matter what they take into consideration,self-regard or maintaining the healthy development of the industry. However, people find that the studies on the risks of asset evaluation are inadequate and laws unsound when they realize the importance of such studies and exert their efforts to find effective solutions. So it is necessary for us to study on the risks of practice of asset evaluation and analyse their forms and reasons thoroughly to avoid those risks.This paper consists of the following five parts:The first part is a general introduction which gives an introduction of the backgrounds, methods and the present situitions about asset evaluation in home and abroad.The second part is about theoretic analysis on the risks of asset evaluation,including some basic concepts, factors and features of the risks. This part is a theoretic basis of this paper.The third part brings forward the forms of the risks by way of introducing cases. The risks may include moral hazard, practice risks due to carelessness, risks of inadequate and hampered evaluation procedures, incompetence and no using of expert advice.The forth part analyses in depth the reasons of the formation of those risks, which include inherent defects of asset evaluation, insufficient regulations, incomplete specification, management defects, deteriorating market environment, low quality of evaluators etc.The last part proposes some measures, which include strengthening the legal system, improving evaluation standards, enhancing the management system of asset evaluation, compacting relative theoretical foundations, establishing a good environment, making better internal management and enhancing the qualities of evaluators etc.The paper contributes to the analysis on reasons of risks and puts forwards to some measures through analysing cases. However, it is still necessary to study the essence of the practice risks of asset evaluation. What is more, this paper dose not make a quantitative analysis, which should be studied further.