Research on corporate finance: history, challenge and prospect in China

• Published in: Nankai business review international 2019-12, Vol.10 (4), p.487-500
• Main Authors: Lan, Yue, Wang, Jianyong, Wu, Shinong, Yang, Jie
• Format: Article
• Language: English
• Subjects: Accounting; Arbitrage; Behavior; Bond markets; Capital assets; Capital costs; Capital markets; Capital structure; Corporate finance; Corporate governance; Development strategies; Dividends; Economic development; Economic models; Economic problems; Economics; Efficient markets; Equity capital; Equity financing; Executive compensation; Financial management; Financial statements; Financial theory; Foreign exchange markets; Futures market; Growth models; Hypotheses; Investments; Investors; Management decisions; Metric system; Nobel prizes; Portfolio management; Property; Securities markets; Securities prices; Taxation; Technology; Theory; Topics; Valuation
• ISSN: 2040-8749; 2040-8757
• DOI: 10.1108/NBRI-02-2019-0006

Purpose For the past years, the population of firms in China has increased fast. However, the financial research has always fallen behind the financial practice. Also, the Western financial theory may not be completely consistent with China’s context. In addition, appearing internet technology with big data and its applications to business bring some challenges not only to financial practice but also to the financial literature. Thus, the purpose of this paper is to review historical development of research in corporate finance, discuss the current issues and propose 16 key research topics in China context. Design/methodology/approach This paper surveys Western classical literature and some important literature by Chinese scholars in the field of corporate finance. On this basis, the authors point out the shortcomings of existing research and opportunities for future research. Findings The authors propose 16 key research topics in the near future considering the current reforms on economic development strategy, financial and taxation system and SOE’s property right under the institutional background in China. Originality/value This paper makes a contribution to corporate finance research by exploring frontier topics for future research according to the China context and the global trend. These topics represent the demand from enterprises in China and are challenges for the academic world. It is of practical significance and great theoretical value to implement these studies. It will help the management to solve their financial problems and provide a fundamental basis for constructing the financial management theory with Chinese characteristics.