The academic team

On the morning of September 24, 2020, the 88th issue of the Jiaohu Financial Forum Series of Jiangxi University of Finance and Economics was successfully held in the east conference room of the School of Finance. This forum invited Dr. Wang Hongjian to share on shortened approval time, capital chasing law and company equity value. Xiao Jun, assistant dean of the School of Finance, presided over the meeting. Associate Professor Hu Jun, Associate Professor Du Jiangze, Dr. Wang Qing and some of the 2018 and 2019 Finance Masters students attended the meeting.

Firstly, Dr. Wang Hongjian introduced the company's stock option method and pointed out that the flexibility of management is an extremely important factor in determining the company's value. Then he explained that the function of capital seeking profit is subject to internal and external institutional constraints such as management agency motivation, company financial status, and investment approval. At present, the degree of streamlining and delegating power to administrative approval is large, and we need to pay attention to whether it can achieve the expected results. At the same time, he also introduced the relationship between company value and investment and explored the relationship between system and investment. Finally, the theoretical contribution of his report is put forward: how the government's liberalization of constraints affects the implementation of real options, and this is also a scientific test of the system, and the effect test from the value perspective is of practical significance for the advancement of the system.

​

At the end of the meeting, Dr. Hongjian Wang had an active exchange with teachers and students on site. Some teachers raised questions: In a market where investment opportunity information is scattered, some companies belong to growth options, and some companies belong to mixed options. Under the circumstance, whether the superposition effect will affect the results. Dr. Hongjian Wang replied that it is possible, but many other indicators such as the degree of customer dispersion are used in the model. The more customers, the higher the degree of information dispersion. In this case, it would be better to decentralize the approval power from the government to the enterprise because the enterprise can respond quickly, but this advantage is not so obvious when the degree of information dispersion is very low. The atmosphere of this forum was enthusiastic. The teachers and students actively participated in the discussion. The wonderful report of Dr. Wang Hongjian made the students very rewarding.