The Research On The Principal-agent Risk Of The Investment Of National Social Security Funds And Prevention

The Social Security Fund is a core issue of social security system. Without adequate socialsecurity fund to support the social security system, that will be the same as water without asource and trees without roots. The National Social Security Fund was designed to supplementand adjust the social security spending of Central Government, and it is the strategic reserve ofCentral Government focused on social security. With the accelerated process of populationaging and pension personal accounts mostly running empty account, National social securityfunds are facing pressure unprecedented to increase the value. Investment operation is the onlyoption of increasing the value of social security funds, but it will face many risks. Agentscommissioned by the National Social Security Fund to invest is on the rise, the agencyrelationship from this model is very complex, the subjects in the narrow sense are include theSocial Security Fund Council, investment manager, custodian and so on. But in the broad sense,that is also including all the people and the organizations that are invested. Each body has thedifferent interest objectives and the different divisions of work in the National Social SecurityFund investment, there are some differences and risks exist in. the principal-agent relationshipfor sure. Based on the special nature of the National Social Security Fund, and as an entry pointof the actual situation of the National Social Security Fund investment nearly years, with theHypothesis of Economic Man and the Principal-agent theory as main theoretical foundation,this article has researched the National Social Security Fund investment model, discussedpossibly risks of this mode, analyzed the causes of risks arising. Finally, this article put forwardsome advises to control and prevention the risks of the National Social Security Fundinvestment from multiple dimensions. That is, by improving the incentive system andsupervision system, prompting agents accord to the principle of maximizing benefits of the fundwhen they investing in the use of funds to improve the income of the fund, while taking intoaccount safety of the fund. There are some positive significance to develop and implement thepolicies that designed to ensure the security, stability and profitability of the National SocialSecurity Fund.