In the current financial and trading markets, the information asymmetry problem can seriously affect the efficiency of business and market operation, “equity incentives” are a more mature solution to the problem, but the implementation process lacks the combination of the actual situation. In order to further prevent the adverse effects of the problem and to provide more effective solutions to the problem for practitioners in the relevant industries. The article is based on the summary of previous research results, two Chinese companies, China Evergrande and Duoyi Network, are briefly analyzed. Among these enterprises, the existence of information asymmetry reduces the efficiency of the transmission of capital information, which leads to a series of problems, such as the uneven allocation of corporate resources. Related problems not only led to the loss of assets and management chaos within the case companies, but in the Evergrande case, it also caused serious negative impacts on the operation of the industry market. This article will modify the existing solution from the perspective of both the enterprise’s internal and market transaction coordination, optimize the information transfer process and strengthen the supervision of the relevant links, making the solution more suitable for the current market conditions.

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Mitigating Information Asymmetry by Optimizing Enterprise Management and Market Operation-Using Chinese Firms as a Case Study

  • Yuhang Xie

摘要

In the current financial and trading markets, the information asymmetry problem can seriously affect the efficiency of business and market operation, “equity incentives” are a more mature solution to the problem, but the implementation process lacks the combination of the actual situation. In order to further prevent the adverse effects of the problem and to provide more effective solutions to the problem for practitioners in the relevant industries. The article is based on the summary of previous research results, two Chinese companies, China Evergrande and Duoyi Network, are briefly analyzed. Among these enterprises, the existence of information asymmetry reduces the efficiency of the transmission of capital information, which leads to a series of problems, such as the uneven allocation of corporate resources. Related problems not only led to the loss of assets and management chaos within the case companies, but in the Evergrande case, it also caused serious negative impacts on the operation of the industry market. This article will modify the existing solution from the perspective of both the enterprise’s internal and market transaction coordination, optimize the information transfer process and strengthen the supervision of the relevant links, making the solution more suitable for the current market conditions.