Development of capital structure theory based on option pricing

The capital structure theory based on option pricing model is an important embranchment, which connects the capital structure theory with its most essential issue, debt and equity pricing. The kernel of B-S option pricing theory is no-arbitrage, which initially appeared in MM theory of Modigliani and Miller. Merton illuminated that debt and equity were in essence options subsequently, so the method of option pricing was applied to debt and equity pricing. The relation of option pricing and capital structure theory is compact in the beginning. This paper reviews capital structure theory based on option pricing model, and proposes future research direction.     

A Brief Review of the Speech Act Theory

Speech act theory was proposed by J, L, Austin and has bee. developed by J. R. Searle. They believe that language is not only used to inform or to describe things, it is often used to do things , to perform acts. A speech act consists nf three apects： locutionary ach llJocutlonary act and perlocudonary act. This paper attempts to give a brief review of the speech act theory and then presents my personal opinions on the advantages and disadvantages of the theory.     

Theory of the degree of trust： Toward to the economy of trust The new paradigm

Each company has to reopen different new methods and means in order to maintain high degree of competitive power on the market. The theory of trust developed by the author on the ground of his observations of many years on the market and formed respectively in theory and laws and practices to be applied in the contemporary life of every company, acting on the market have been presented. The theory gives every company concrete decisions to reach a better competitive power on the market in the globalization. The described below theory of degree of trust was developed by Dobrev, M. as a president of consulting company ＂D＆M Dobrev Consulting House＂ （Dobrev, M., 1993）for analysis and trading.     

Call for Papers

China-USA Business Review and Chinese Business Review, founded in 2001, are two professional journals of David Publishing Company, USA. Our Journals aim to publish highly selective, widely cited articles of current relevance that will have a long-term impact on economics research. Our journals provide a forum for theoretical, applied, policy and methodological research into social and economic issues. Since 2001, our journals have presented significant research and scholarship in economic theory and practice. The journals focus on analytical, interpretive, and empirical studies, including monetary theory, fiscal policy, labor economics, development, micro-and macroeconomic theory, international trade and finance, industrial organization, and social economics and so on.     

A Tentative Study of the Prosperity of Translated Literature in the Late Qing Dynasty and the Early Period of the Republic of China ----From the Perspective of Polysystem Theory

Since polysystem theory was introduced by Even-Zohar in 1970s, it has stimulated discussion among scholars in the field of literary and translation studies. This paper briefly discussed this theory and the likelihood to apply it to the study of Chinese literature in the early half of the 20th century. Besides, this paper also considered the influence translated literature exerted upon original Chinese literature.     

A theoretical analysis of IPO underpricing

This paper provides a theoretical analysis of IPO underpricing and some testable hypotheses. Our model suggests that the IPO underpricing phenomenon can be explained by information asymmetry theory and agency theory in mature security market where market determines issuing price, but not in China＇s developing market where restrictions on issuing price exist. The IPO underpricing is actually a problem of asset pricing in China.     

Anti-commons： How tragedies happen—— Some cases and the evidences on fisheries

Anti-commons theory is an emerging theory proposed by scientists to explain several situations about property rights. An ＂anti-commons＂ problem arises when there are multiple rights to exclude. Little attention has been given to the setting where more than one person is assigned with exclusion rights, which may be exercised. We analyze the ＂anti-commons＂ problem in which resources are inefficiently under-utilized rather than over-utilized as in the familiar commons setting. In fact, these two problems are symmetrical in several aspects.     

Person-culture fit based on interaction of enterprise culture and recruitment

Based on theoretical support of adaptation theory and new expectation theory, this paper proposes that enterprise culture and recruitment interact each other. Enterprise culture plays the role of filtering and guiding in the enterprise recruitment, while recruitment is the propaganda tool, advantageous route, strategic measure and inevitable choice for enterprise culture. Effective recruitment strategies are helpful for the enterprise to achieve the fit between person and culture, and enhance the competitive advantage of the enterprise, thus reduce the employee turnover rate.     

Analysis of the Inefficient Consumer Surplus of Chinese Domestically Produced Cars

The theoretical foundation of this thesis is the extended Value-Added theory Value-Creating theory. The conclusion the author gets is that Chinese domestically produced cars are lack of the ability to create bigger consumer surplus. The author studies the reasons caused these weaknesses, the negative effects caused by this problem and gives suggestions on how to enhance cortsumer surplus for Chinese domestically produced cars, gives the manufacturer＇s surplus kept guaranteed.     

Managing complexity： A problem of chaos in fisheries policy

This work intends to present chaos theory （and dynamical systems such as the theories of complexity）, in terms of interpretation of ecological phenomena. The chaos theory applied in the context of ecological systems, especially in the context of fisheries has allowed the recognition of the relevance of this kind of theories to explain fishing phenomena and fisheries policies. It has permitted new advances in the study of marine systems, contributing to the preservation of fish stocks. This paper deals with the way how to manage fisheries taking chaos in account of the problem.     

Yeats’s Historical Prophecy in His Two Poems——On “The Second Coming” and “Leda and the Swan”

As one of the greatest poets of the 20th century,William Butler Yeats wrote many brilliant poems in his life and he spent years crafting an elaborate,mystical theory of the uni-verse and created great works on human history and philosophy. The most typical ones to elaborate on such theory are "The Second Coming " and " Leda and the Swan ",both of which are related to the historical prophecy and reflect Yeats’s idea about history.     

Analysis of the Misunderstanding in Investment Project Economic Appraisal Theory

The internal rate of return （IRR） is often used as the project marginal revenue to ascertain project optimal scale and gain the minimum attractive rate of return （MARR） in investment project economic appraisal theory. This paper proves that the internal rate of return doesn＇t accord with the meaning of marginal revenue from the point of view of theory and practice and only net present value ratio （NPVR） and net invest-profit rate （N/K） can accord with the meaning of marginal revenue. This is also the reason that IRR ranking method can＇t guarantee the selection result is optimum when capital rationing doesn＇t divide up the project. Therefore other indicators ranking methods except NPVR and N/K, all lack theory foundation and are approximate methods in practical application.     

A different view to two paired sample researches and an application

Hypothesis test is a function of decision making. With samples data, the author has got konwledge about population. It analysis the difference between two dependent or independent samples significance or not. Hypothesis test measures the difference of estimation from real values. This article resarches probability of these differences. In this study, difference and similarities between nonparametric wilcoxon t test and parametric t test will be searched, and application is about basic rights and freedom of the students. These findings are in line, the normalization of the data due to dissolution of the test theory as non-parametric implementation, will be more even in terms of statistical theory. However, the implementation of parametric test does not show the absolutely wrong to deliver results.     

Subject Choosing in China＇s Transnational Investment

Three main issues in transnational operation are： investment subject choosing of transnational operation （who is going out）, location choosing of transnational operation （where to go）, and industry choosing of transnational operation （what to do）. As to the subject choosing, there are two arguments, one is state-owned enterprise theory and the other is individually-run enterprise theory. After examining transnational companies from both developed countries and developing counties, we argue that subject choosing of transnational operation depends on competitive advantages of these enter＇prises instead of their ownership.     

A Study on Theoretical Framework of Finance Management

Despite there are breakthroughs in some special fields of the theoretical research on f＇mance management, it lacks a systematic study in pursuit of the general knowledge on finance management theory. Hence, so far, there is no clear theoretical framework system. Starting from the definition, feature and function of finance management theory, the author demonstrates the purpose and value of studying TFOFM and five composites as main body, assumption, goal, element, process and methods. Furthermore, the author proposes the nature of finance management as TFOFM logic starting point.     

The Positive Research on the Tendency of Industrial Agglomeration and Forecasting

New Economic Geography puts forward a famous law of inverted U curve. Meanwhile Chinese scholar Qi Liang proposes industry＇s life cycle theory, which is incompatible to the law of inverted U curve. In order to verify which theory is suitable for the situation of the industrial agglomeration of Chinese industry, we select ten kinds of representative products, carry on a positive analysis of the tendency of the industrial agglomeration from 1980 to 2003, observe where these industries center and forecast the industrial concentration of eight kinds of products in the following ten years.     

Discussion on the Suitability of Strategic Trade Policy in China

One theory of strategic trade policies is about the profit shifts theory by ＂harming others to benefit oneself＇. This strategic trade policy is that one country takes its losses to other countries as in ＂using neighbor＇s field as a drain＂. This kind of trade policy may suffer the resistance and vindictiveness of other countries. Under these terms of effective large-scale production, the unperfected market structure and the transition stages of its economic system, China can＇t adopt this strategic trade policy blindly.     

Analysis on the integrated venture of corporate capital operation based on the venture coupling theory

The capital operation of an enterprise is an economical activity with mighty venture. Only identifying comprehensively all ventures of capital operation activities for the enterprise, can we set down more and more scientific and harmonious venture strategies to reduce and elude the capital operation venture. This paper firstly discusses the definition of capital operation venture for an enterprise and cognition towards the capital operation venture under the traditional risk management theory. Then it focuses on elaborating the fundamental theory of capital operation venture coupling based on the issues raised above, constructing the bran-new exhibit model for the integrating venture of enterprise＇s capital operation.     

An evolutionary game analysis of tariff determination

Tariff determination is an important part in the theories of international trade policy, and game theory in tariff determination enriches the methods for analysis, making the discussion of tariff determination more clearly. Based on the theory of Evolutionary Stable Strategy （ESS）, via the methods of Replicator Dynamics, with the established model of exporting enterprises in two countries similar to ＂Cournot Competition＂, by discussing the importing tariff determination, this paper analyzes both symmetric dynamic game among members in one group and asymmetric dynamic game between two different groups, and gets the conclusion by the characteristics of the ESS.     

The Research on the Relation between China＇s Accession to WTO and China＇s Economic Development under the Theory of Comparative Advantage

According to the theory of comparative advantage, the relation between China＇s accession to WTO and China＇s economic development is studied. And a positive conclusion is presented in this article.