We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securi...We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securities Qualifications as an exogenous shock.This policy requires audit firms to raise the sum of the cumulative compensation limit of their PII and PRF from 6 million to 80million yuan.It is found,first,that the capital market regards this policy revision as a signal to strengthen investor protection and responds positively;client firms with high audit risks have a stronger response.Second,auditors’governance of financial information has strengthened,resulting in the significant improvement of their clients’financial reporting quality,with a stronger effect on firms with higher earnings management risk.There is no evidence that audit firms pass the costs on to their clients.Finally,the mismatch between auditors and new client firms is alleviated.We show that in an emerging market with weak investor protection,establishing a sound risk-preparedness mechanism for audit firms and strengthening the capacity for civil compensation ex post greatly improve the adaptive degree between international auditing standards and the legal environment of China,thereby enhancing the overall service quality of the audit market.展开更多
Social security fund is the key of social security system to run the important material. Policy implementation of social security funds, operation supervision of safety and risk prevention and control and management, ...Social security fund is the key of social security system to run the important material. Policy implementation of social security funds, operation supervision of safety and risk prevention and control and management, is to perfect social security system, to realize the sustainable development of the social security system important link. This paper expounds the basic status quo of China＇s social security fund risk control, risk prevention and control, the necessity of fund risk management, and analyzed the social power supervision in the way and the important significance.展开更多
Strengthening the management on the risk of the Pension Fund which is an important part of the social security system in our country. In recent years, with the increasing of aging population, the stock of the huge pen...Strengthening the management on the risk of the Pension Fund which is an important part of the social security system in our country. In recent years, with the increasing of aging population, the stock of the huge pension fund is facing tremendous pressure. To keep the security of the fund investment and operations, mechanism of risk control is becoming particularly critical. Because there are many circles in the social insurance fund operations including the collection, payment, savings and investment and many other aspects. The applications of over-all thought to the system of social insurance funds operation is very necessary,on the bases of collating the causes of risks of social insurance fund, identifying the factors of affecting social insurance funds, and then offer the corresponding countermeasures.展开更多
Agricultural risks in our country have been introduced:firstly,disasters are multiple and frequently happened;secondly,widely affected and seriously suffered.Features of risks also are introduced:the first is the agri...Agricultural risks in our country have been introduced:firstly,disasters are multiple and frequently happened;secondly,widely affected and seriously suffered.Features of risks also are introduced:the first is the agricultural risk unit is large;the second is the agricultural risk is strongly regional;the third is the agricultural risk is universally half revival.The paper discusses the limits of the agricultural risks management,pointing out that in the management systems of agricultural risks,government finance is strongly burdened,compensations on the catastrophe is small in region,low in level.Based on the above analysis,the protection systems of agricultural risks have been constructed:the first is to establish the reassurance systems of agricultural risks;the second is to establish the risk funds of single agricultural item;the third is to transfer the catastrophe risks through stocks;the fourth is to construct multi leveled countermeasures of agricultural risks.展开更多
In this paper, we propose a new risk measure which is based on the Or- licz premium principle to characterize catastrophe risk premium. The intention is to develop a formulation strategy for Catastrophe Fund. The loga...In this paper, we propose a new risk measure which is based on the Or- licz premium principle to characterize catastrophe risk premium. The intention is to develop a formulation strategy for Catastrophe Fund. The logarithm equivalent form of reinsurance premium is regarded as the retention of reinsurer, and the differential earnings between the reinsurance premium and the reinsurer＇s retention is accumu- lated as a part of Catastrophe Fund. We demonstrate that the aforementioned risk measure has some good properties, which are further confirmed by numerical simu- lations in R environment.展开更多
文摘We examine the risk-preparing benefits of Chinese audit firms’professional indemnity insurance(PII)and professional risk fund(PRF)by using the Notice on Adjusting the Application Requirement of Audit Firms for Securities Qualifications as an exogenous shock.This policy requires audit firms to raise the sum of the cumulative compensation limit of their PII and PRF from 6 million to 80million yuan.It is found,first,that the capital market regards this policy revision as a signal to strengthen investor protection and responds positively;client firms with high audit risks have a stronger response.Second,auditors’governance of financial information has strengthened,resulting in the significant improvement of their clients’financial reporting quality,with a stronger effect on firms with higher earnings management risk.There is no evidence that audit firms pass the costs on to their clients.Finally,the mismatch between auditors and new client firms is alleviated.We show that in an emerging market with weak investor protection,establishing a sound risk-preparedness mechanism for audit firms and strengthening the capacity for civil compensation ex post greatly improve the adaptive degree between international auditing standards and the legal environment of China,thereby enhancing the overall service quality of the audit market.
文摘Social security fund is the key of social security system to run the important material. Policy implementation of social security funds, operation supervision of safety and risk prevention and control and management, is to perfect social security system, to realize the sustainable development of the social security system important link. This paper expounds the basic status quo of China＇s social security fund risk control, risk prevention and control, the necessity of fund risk management, and analyzed the social power supervision in the way and the important significance.
文摘Strengthening the management on the risk of the Pension Fund which is an important part of the social security system in our country. In recent years, with the increasing of aging population, the stock of the huge pension fund is facing tremendous pressure. To keep the security of the fund investment and operations, mechanism of risk control is becoming particularly critical. Because there are many circles in the social insurance fund operations including the collection, payment, savings and investment and many other aspects. The applications of over-all thought to the system of social insurance funds operation is very necessary,on the bases of collating the causes of risks of social insurance fund, identifying the factors of affecting social insurance funds, and then offer the corresponding countermeasures.
文摘Agricultural risks in our country have been introduced:firstly,disasters are multiple and frequently happened;secondly,widely affected and seriously suffered.Features of risks also are introduced:the first is the agricultural risk unit is large;the second is the agricultural risk is strongly regional;the third is the agricultural risk is universally half revival.The paper discusses the limits of the agricultural risks management,pointing out that in the management systems of agricultural risks,government finance is strongly burdened,compensations on the catastrophe is small in region,low in level.Based on the above analysis,the protection systems of agricultural risks have been constructed:the first is to establish the reassurance systems of agricultural risks;the second is to establish the risk funds of single agricultural item;the third is to transfer the catastrophe risks through stocks;the fourth is to construct multi leveled countermeasures of agricultural risks.
基金The NSF(10971081,11001105,11071126,10926156,11071269,J0730101)of ChinaSpecialized Research Fund(20070183023)for the Doctoral Program of Higher Education+2 种基金Program(NCET-08-237)for New Century Excellent Talents in UniversityScientific Research Fund(200810024,200903278)of Jilin University985 project of Jilin University
文摘In this paper, we propose a new risk measure which is based on the Or- licz premium principle to characterize catastrophe risk premium. The intention is to develop a formulation strategy for Catastrophe Fund. The logarithm equivalent form of reinsurance premium is regarded as the retention of reinsurer, and the differential earnings between the reinsurance premium and the reinsurer＇s retention is accumu- lated as a part of Catastrophe Fund. We demonstrate that the aforementioned risk measure has some good properties, which are further confirmed by numerical simu- lations in R environment.
