Game Analysis of the Influences of Converse Selection on Enterprise Financing

Jingting Ma, Shumei Wang, Jian Gui


Converse selection is the phenomenon commonly existing in the market, and its connotation is the asymmetry of information. Converse selection influences the trading between two or among above two different individuals or enterprises. Enterprise financing comes down to the trading between at least two different enterprises such as the financing party and the loan party, i.e. the behavior of converse selection influences the enterprise financing, and under different financing modes, these influences are different, which can be better opened out by the game analysis. And the theory of signal can be used to reduce or eliminate the bad influences on the enterprise financing brought by the behavior of converse selection.

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Asian Social Science   ISSN 1911-2017 (Print)   ISSN 1911-2025 (Online)

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