On the afternoon of December 12nd, 2013, professor Chong Khoon Lin from Business School of Real Estate and Finance of Columbia University and professor Neng Wang form America National Bureau of Economic Research gave an academic report theme at ”Corporate Finance and Inalienability of Human Capital” in room 418, College of Economic of Zhejiang University. This seminar was held by professor Liuyong Yang, vice dean of College of Economic.
New research achievement was brought to teachers and students in professor Neng Wang’s visit to Zhejiang University. The report considered a dynamic model of corporate investment, financing, risk management and valuation from establishing the entrepreneur employment contract, and established the Merton dynamic optimization model by introducing the bank credit, derivatives hedging strategy. The optimal contract theory and the numerical simulation results agree well with the Merton model. This report which has two innovative achievements provided forefront research perspective of finance for teachers and students of Zhejiang University. First, this paper bring limited commitment of entrepreneurs into limited liability of investors at the first time, and explain the agency problem, corporate investment and financing decision from the front angle of finance. Besides, this paper also achieved great breakthrough by considering bank lending of previous Merton model, which explained the problem of liquidity management.
This report attracted many teachers and students and gave a chance for students to communicate with professor Neng Wang.
