Abstract

Property rights, manifesting as the relationship between people and goods（properties）intuitively, is the relationship of economic rights between people with regard to properties substantially.In essence, the market economy is property rights economy.In China, the correct way to realize the socialist market reform relying on realizing the transformation from the hierarchy rules or privilege to the property rights rules.Property rights issues, as the core for the establishment and development of China' s socialist market economy, are closely connected with the overall situation of the economic reform; therefore, they are the cornerstones for building modern enterprise institution.The property rights value movement carried out in the form of company organization is the foundation for the formation and development of the market economy, and its process and results decide the basic laws for the operating of the market economy.The property rights institution, as the master institution for maintaining the fundamental rights needed in the society, is the source of other relevant institutions; in other words, it acts as the institution of institutions.Therefore, no matter in developed or developing countries, especially in China who is experiencing the dramatic property rights institution transformation, the financial effect of the property rights institution and its transformation is very obvious.

Financial paradigm is a theoretical model or framework for people to ponder and understand financial activities and relations.In the orthodox way, finance is studied based on the“rational choice paradigm”stated in the mainstream economics.However, originating from the rational economic man hypothesis, individualistic methodology and formalism research tradition, and a series of theoretical development premises, orthodox finance is seriously defective theoretically and logically.Therefore, transcending the neoclassic analysis paradigm of orthodox finance and blazing new finance research paths and fields are emergent.Establishing and developing property rights finance is the essential way for walking out of the dilemma of orthodox finance.

In fact, the close relationship between finance and property rights is inherent.The gradual combination of property rights, transaction cost, contracts and values has promoted the germinating and development of property rights finance concept.As the foundation for reflecting and confirming property rights structure, coordinating and balancing property rights relations, and improving and protecting property rights interests, property rights finance serves as an edge tool to reduce frictions and conflicts arising during the reform, and solve the property rights problems existing between state-owned and private enterprises.The development history of finance, so to speak, is a history of managing and controlling the property rights value network.

Taking the property rights theory and value network theory as cornerstones; the three hypotheses of composite man, property rights institution endogeneity and financial behavior social embedability as the basic premises; and the latest outputs of modern economics as measures, the book aims to break through the rational research paradigm of orthodox finance, constructing a new property rights finance research paradigm with the property rights institution as the endogenous variable of financial behaviors and the property rights value network as the logic principal research line.Except for the introduction, the book discusses how to realize the above in 10 chapters of three parts.Part I“Basis”studies the property rights theory and value theory by combing historical logic with property rights value movement logic.Part II“Theory”, via the normative study, comparative study and game theory, deeply analyzes six aspects covering the construction of a property rights finance logical framework, basic theories of property rights finance, property rights analysis based on the financing theory, property rights analysis based on the investment theory, property rights analysis based on working capital management and enterprise income distribution under the property rights paradigm.Part III“Application”, by means of the game theory, inductive method and deductive method, includes the property rights arrangement and game analysis relating to information management and financial supervision, property rights analysis on enterprise M&A and the property rights analysis on carbon finance.

The innovation of the book mainly lies in the following four aspects：

1．In this book, based on the property rights theory and value network theory, the author clearly states the core concept of“property rights value network”. In addition, it constructs a new property rights finance research paradigm by taking the property rights institution as the endogenous variable of financial behaviors and the“property rights value network”as the principal research line.

2．The author puts forwards“the doctrine of property rights finance”based on the three hypotheses of composite man, property rights institution endogeneity and financial behavior social embedability.The basic ideas of the doctrine are summarized as follows:（1）Property rights acts as an eternal lighthouse for finance while value is the fundamental feature of finance; the rights of property play as the core of property rights while value is the quantitative characterization of property rights; and property rights is an entity with value which makes the entity a property rights.（2）A contract is the carrier of property rights which acts as the basis of the contract; among various complicated contracts, the fundamental one is the property rights contract; and the essence of today's enterprises is a property rights contract nexus forming by the contracts between stakeholders.（3）In an enterprise contract network, economic activities existing between different subjects and at different layers form various capitalvalue chains which then form into transaction and exchange networks at various links, namely, the capital-value network of enterprises. Actually, such capital-value network is just a representation; hiding behind it is the property rights value movement and its corresponding property rights economic network.（4）Enterprise finance includes two fundamentals of financial activities and financial relations.Essentially, the former is a kind of property rights value movement, while the latter, property rights economic network.Therefore, contemporary finance is a coupling of the property rights value movement and its corresponding property rights economic network, which, in essence, is a property rights value network.（5）A property rights value network is a dynamic open system which is limited by the complicated huge social network while at the same time, acts on the normal operation of the social network.（6）The core contents of property rights finance paradigm are the property rights institutional arrangement of enterprise financial resource allocation and enterprise financial resource allocation methods and mechanisms based on property rights institutional arrangement.

3．This book makes innovations on developing property rights finance basic theories.It puts forward that:（1）the essence of contemporary finance is a property rights value network;（2）the subjects of contemporary finance are the shareholders, creditors, managers, employees, customers, suppliers, governments, communities and the stakeholders such as the customers, core enterprises and node enterprises inside the property rights value network;（3）the goals of contemporary finance are maximizing the value of the stakeholders and optimizing the property rights value network; and（4）the basic functions of contemporary finance are resource allocation and value creation.

4．The author clearly defines the connotation of the terminology “carbon finance”. As a cutting-edge branch of finance, carbon finance, under the background that developing low-carbon economies and building low-carbon societies have become trends in the world, discusses the decrease of greenhouse gas emission-related financial issues such as low-carbon financing, low-carbon investment, lowcarbon working capital management and low-carbon income distribution for the purpose of maximizing the comprehensive value of physical capital, human capital, social capital and environmental capital owners, and optimizing the property rights value network. Carbon finance is the general name of a series of carbon financial activities and relations relating to reducing greenhouse gas emission. Essentially, carbon financial activities are a kind of environmental property rights value movement, while carbon financial relations are environmental property rights economic network relations.In other words, carbon finance is the coupling of environmental property rights value movement and its corresponding environmental property rights economic network, which, in essence, is an environmental property rights value network.