(School of Business Administration, Liaoning University of Science and Technology, Anshan, Liaoning 114051)

　　Abstract: The popularization of e-commerce has accelerated the pace at which electronic currency is about to replace traditional currency and become the main means of transaction and payment in people’s daily lives. This paper first compares electronic currency with traditional currency and elaborates on the characteristics of electronic currency. Secondly, based on the characteristics of electronic currency, it analyzes the risks from five aspects. On this basis, strengthening the risk prevention measures for electronic currency, improving the legal and regulatory system, and enhancing risk control has become an essential path for the internationalization development of the financial system. Finally, it summarizes the profound significance of risk prevention for electronic currency.

　　Keywords: Electronic Currency; Risk; Significance

　　Category Number in Chinese Library: F822 Document Code: A Article Number: 1000-8772(2014)10-0135-02

　　1. Preface

　　With the prosperity and development of the economy, the continuous progress of information technology, and the increasingly fierce competition in the financial market, people’s lives are entering a brand new economic era, namely the e-commerce era. The development of e-commerce must rely on the existence of electronic currency. As a product of financial electrification, electronic currency has gradually replaced traditional currency and become the main medium of economic transactions. Electronic currency represented by electronic checks, electronic wallets, and credit cards has gradually become an indispensable part of people’s economic life. Compared with traditional currency, electronic currency has improved efficiency and solved the gap in time and space. At the same time, with the convenience and speed brought by electronic currency, a series of risks have also emerged. Therefore, it is increasingly urgent to strengthen the pace of risk prevention of electronic currency.

　　2. Risks Existing in Electronic Currency and Preventive Measures

　　With the entry of e-commerce into all fields of people’s lives, electronic currency has been widely used due to its practicality, simplicity, security, and rapidity, but a series of risks have also emerged. [1] Due to the rapid development of computer technology, the risks of electronic currency are also increasing, mainly manifested in: technical risks, liquidity risks, credit risks, legal risks, and interest rate risks.

　　2.1 Technical Security Risks and Preventive Measures

　　Electronic currency is a special network product. In the virtual financial environment of the network, the control of electronic currency is completed by computer programs and software systems, and the equipment and programs of the open network are complex. Any failure in any link may threaten the payment and circulation of electronic currency. [2] The technical security risks of electronic currency are mainly reflected in two aspects: on the one hand, electronic currency is prone to risks caused by system errors, such as computer failure, management and control system defects, and risks caused by sudden system interruption, network hackers, and data loss. In addition, computer virus interference and destruction of the normal operation or data of the electronic payment system may cause huge losses. On the other hand, unlike traditional currency, electronic currency is produced and dependent on electronic information technology and network financial systems, and the electronic counterfeit currency is almost identical to the electronic genuine currency in technology. Therefore, as long as the key encoding technology and data secrets of electronic currency are mastered, it is easy to pass off as genuine. [3]

　　In order to address the technical security risks, issuers should conduct a feasibility analysis of the technicality and security before developing electronic currency. Establishing a reasonable and effective internal risk control system and electronic currency identification system enables it to identify potential technical security risks, prevent computer viruses, computer crimes, hacker attacks, etc., ensure the integrity of information, and protect consumer privacy. Provide secure and reliable electronic currency products to realize the legal transaction and secure payment of electronic currency. And establish a certain emergency prevention plan, so that in the event of system interruption, data loss, and other situations, it can handle data recovery and data substitution in a timely manner.

　　2.2 Liquidity Risks and Preventive Measures

　　Liquidity risk refers to the risk caused by the fact that the issuer of electronic currencies does not have enough funds to meet the settlement requirements of consumers. The reasons for the formation of liquidity risk are relatively complex, and the size of the risk is related to the scale and quantity of the issuance of electronic currencies as well as the price. The larger the scale of issuance, the greater the quantity, and the more the amount not used for settlement, the greater the possibility of liquidity risk. It is also related to the size of the market and other risks. In this case, once the issuer has problems such as insufficient credit or assets, it will shake the confidence of electronic currency holders in electronic currencies and require redemption. If the issuer cannot redeem the electronic currencies issued at par or lacks sufficient clearing funds, there may be heavy losses, even bankruptcy.

　　For the liquidity risk of electronic currencies, issuers should conduct cost and benefit analysis of electronic currencies in advance, ensure the implementation of management and internal control procedures, and hold a certain proportion of reserves and sufficient capital.

　　2.3 Credit Risks and Preventive Measures

　　Credit risks are related to the level of public trust in electronic currencies. When an issuing body issues electronic currencies, it will inevitably absorb a large amount of pre-paid funds from the public. At this time, if the public doubts whether electronic currencies can operate, the circulation of electronic currencies will be greatly hindered. This business model is prone to risks where the gains from default deviate from the costs of default. Such credit risks may arise from the fact that the network financial system and the electronic currency itself have not achieved the expected effects and have caused widespread negative impacts in consumers’ minds, or from customers who do not have a sufficient understanding of electronic currencies and whether there is reliable protection when problems arise. [4]

　　For the prevention of credit risks, issuers should establish loss guarantees and other loss-sharing mechanisms for electronic currencies to maintain consumer confidence in electronic currencies and reduce merchant losses. Establish a qualification access system for the issuing body, only those with a certain amount of capital can issue electronic currencies, and pay a certain amount of loss reserve funds according to the amount of electronic currencies issued, to avoid artificially amplifying the scale of social credit and thus generating credit risks.

　　2.4 Legal Risks and Preventive Measures

　　The transaction risks of electronic currencies are caused by the relative backwardness, inadequacy, and imperfection of the network financial legislation, which leads to the emergence of transaction risks. Electronic currencies are in the primary stage in our country, and various laws and regulations are in the exploratory stage. [5] There are no explicit legal documents specifying the issuance of electronic currencies by non-bank institutions. Due to the ambiguity of the issuing body, some illegal elements take advantage of legal loopholes to commit crimes and escape punishment. Legal risks usually include two aspects: one is the risk brought about by the unclear rights and obligations of the parties due to the inadequacy of commercial regulations, and the other is the risk brought about by the uncertainty of the regulatory provisions in the electronic currency operational system. The anonymity and virtuality of electronic currencies make money laundering and other criminal behaviors frequent.

　　In terms of preventive measures against legal risks, the state should establish and improve laws and regulations related to electronic money, limit the subjects of electronic money issuance, [6] allow private sectors to issue electronic money, but the issuing subjects must be banks. This way, the existing laws and regulations on the supervision of banking systems can still be applicable. As the laws and regulations related to electronic money gradually mature, it can be allowed for information enterprises to cooperate with banks to develop electronic money, but it must be approved in advance, meet certain minimum capital standards, and have sound operational mechanisms and regulations to enhance the coverage and international competitiveness of electronic money in our country.

　　2.5 Interest rate risk and its preventive measures

　　Interest rate risk refers to the risk of losses caused to the issuing institutions and commercial banks by the uncertainty of market interest rate changes. [7] The acceleration of interest rate changes is due to the rapid circulation of electronic money on the Internet, which may cause assets to deviate from liabilities, thereby increasing the possibility of losses for the issuer and consequently, the possibility of bearing a relatively high interest rate risk.

　　In terms of interest rate risk, on the one hand, the issuing institutions of electronic money should establish an interest rate reserve fund. This reserve fund can include additional gains and losses caused by changes in actual interest rates, similar to the bad debt reserve of banks, which can compensate for the losses suffered by the issuer due to changes in interest rates. On the other hand, interest rate risks faced by all or part of the assets can be reduced by matching equivalent funds and liabilities of electronic money.

　　3. The importance of preventing the risks of electronic money

　　So far, the development of electronic money is still in the initial stage, and there is no electronic money that is universally accepted by the public. The regulatory systems of various countries or fields for electronic money also lack clear laws and regulations, and rely solely on existing regulations related to the banking system. However, the development of electronic money is progressing rapidly, its application is becoming more widespread, and the demand for electronic money is increasing. Due to the limitations of financial supervision, the prevention of risks associated with electronic money is of great significance.

　　3.1 It is conducive to ensuring the security of commercial bank funds

　　With the development of e-commerce and the emergence of online banking, the frequency of using electronic money as a medium of exchange is increasing rapidly. Therefore, preventing the risks associated with electronic money and ensuring its security has become a mainstream concern for both issuers of electronic money and commercial banks. The development from traditional currency to electronic money has led commercial banks to shift from traditional management and operational modes to informatization and electrification. At the same time, many illegal elements are using high technology to commit crimes, without having to be physically present at the scene. They only need to use electronic technology, network intrusion, and other means to achieve their criminal objectives. However, due to the anonymity and virtuality of electronic money, many criminal activities leave very little evidence and are difficult to trace. Therefore, the development of electronic money is bound to have a significant impact on commercial banks. Neglecting the risks and preventive measures of electronic money will inevitably lead to financial losses for commercial banks.

　　3.2 It is conducive to ensuring the smooth progress of economic activities such as e-commerce

　　E-commerce is an electronic transaction mode and related service activities that use modern computer information technology and network communication technology, relying on the open international Internet to carry out business exchanges, marketing promotion, and payment settlements in various countries or fields. The development of e-commerce itself is closely related to electronic currency. In the e-commerce environment, only by ensuring the security and confidentiality of electronic currency can it be widely used. Therefore, strengthening the prevention of risks in electronic currency is particularly important in e-commerce, ensuring the smooth progress of financial transactions.

　　3.3 It is conducive to preventing financial risks and ensuring social stability

　　Electronic currency has become an important part of commercial banking services. With the rapid development of the social economy, electronic currency has established a very close relationship with people’s daily lives, such as credit card payment services, Taobao coins, QQ coins, and the newly emerged Bitcoin, which have gradually replaced traditional currency in people’s lives. The application of electronic currency has reduced the circulation of traditional currency, accelerated capital turnover and liquidity, and improved the quality and efficiency of services. Since the security of electronic currency is related to the security of currency circulation and the confidentiality of people’s daily lives, preventing the risks of electronic currency is imperative. This concerns the healthy development of the financial industry and the entire national economy, contributes to social stability, ensures the normal lives of the people, and maintains public confidence in electronic currency. [7]

　　4. Conclusion

　　Electronic currency has advantages beyond traditional currency, but due to its inherent characteristics and the diversity of issuers, it also carries certain risks. Moreover, as electronic currency is still in its early stages, it poses significant challenges to the existing banking regulatory system. There are no clear laws and regulations internationally to improve banking supervision, and China is currently exploring the establishment of a comprehensive legal system to prevent the risks associated with electronic currency.

　　References:

　　[1] Risks and countermeasures for the development of electronic currency in China: A journal article from Southern Finance, 2009(1), pp. 61-63.

　　[2] Research on the risk of electronic currency based on AHR: A journal article from China Management and Informationization, 2009, 12(3), pp. 95-98.

　　[3] Analysis of the risk of electronic currency and its impact on central bank supervision: A journal article from Qinghai Finance, 2010(13), pp. 28-30.

　　[4] Advanced preventive measures for the risk of electronic currency: A journal article from Jinan Finance, 2001(6), pp. 59-60.

　　[5] Wang Qian, Ji Yushan, The impact of electronic money on the money supply and the countermeasures [Journal Paper] Comparison of Economic and Social Systems 2005(4) 121-122.

　　[6] Wu Libin, The risk management and legal supervision of electronic money [Journal Paper] E-commerce 2009(4) 56-61.

　　[7] Xu Wenhui, The risk prevention of electronic money [Master’s Thesis] Southwest University of Finance and Economics 1999 14-16.

　　[8] Jiang Liren, Hu Yue, The challenge of Bitcoin to the concept of traditional money [Journal Paper] Southern Finance 2013(10) 31-36.

　　[9] Du Yanqing, The risks and prevention of currency electrification [Journal Paper] Statistics and Information Forum 2002, 17(2) 41-45.

　　Abstract: This paper analyzes the causes of the global financial crisis since the outbreak of the U.S. subprime crisis under the theoretical framework, and interprets this financial tsunami from three aspects: the possibility of capitalist economic crises, the generation of virtual capital and the occurrence of financial crises, and the significance of using theoretical analysis to study financial crises.

　　From the subprime crisis that broke out in the summer of 2007 in the United States to the full恶化 in the autumn of 2008, the independent investment bank model disappeared in the United States, and the financial market was on the verge of collapse. Although the U.S. government implemented unprecedented rescue actions, it did not eliminate the market’s concerns about the U.S. economy, and the crisis further spread to other countries, gradually evolving into the global financial crisis that we see today. The author believes that in addition to describing the technical mistakes and policy flaws of this international financial crisis from the operational level, it is also necessary to analyze the root causes and essence of this international financial crisis, that is, to understand it from the basic contradictions of the capitalist mode of production—the contradiction between the socialization of production and the private ownership of means of production.

　　1. The possibility of the occurrence of financial crises

　　With the emergence of commodity economy and the appearance of money, the exchange before and after the production process has been separated in time and space. Once this separation leads to obstacles in the sale of goods, the crisis of realizing the value of goods will occur. Marx believes that it is due to the opposition between commodity and money in the form of value and the necessity of their mutual conversion that the possibility of economic crises and monetary and financial crises arises in the process of capital movement.

　　Firstly, the buying and selling of goods is divided into two stages, separated in time and space, which makes the transformation of money and goods appear random and uncertain. Because the person who sells the goods and obtains money may not buy immediately, this means that money has exited the circulation, while the goods are waiting in the market. This separation or independence of buying and selling makes the process of commodity production and value realization contain the possibility of interruption or crisis. Secondly, with the development of credit, goods and money do not appear at the same time in the buying and selling of goods, and money as a means of payment appears in the future. If the debt and credit of a business that relies on credit for the exchange of goods are not mutually offset at the same time, and the incoming funds cannot settle the debt, the possibility of a debt payment crisis arises.

　　2. The occurrence of virtual capital and financial crises

　　The operation of virtual capital is directly manifested as distribution and exchange relations. Virtual capital does not directly enter the production field, nor is it used directly for consumption; it is in the intermediate link between production and consumption. Generally speaking, financial assets such as stocks and bonds have no production costs, and their prices depend on people’s valuation of them in the market, that is, on people’s expectations of the future income of such assets. Therefore, the prices of these assets can be regarded as a price system supported by people’s concepts, including real estate, securities, intangible assets, and so on, which constitute the virtual capital system. The accumulation of virtual capital can be decoupled from the accumulation of real capital in most cases, that is, the value symbols reflected by the accumulation of virtual capital can be unrelated to the real value of real capital. The quantity of virtual capital is not consistent with the quantity of real capital, and the more developed the credit economy is, the more likely the quantity of virtual capital may exceed the quantity of real capital. Once the excess is too large, the expectations and confidence of the trading entities will be shocked, and the quantity of virtual capital will correspondingly shrink sharply, which can directly trigger a financial crisis. According to Marx’s analysis, the excessive expansion of the virtual capital market and the excessive growth of bank credit are the basis and conditions for the occurrence of monetary and financial crises. Under such abnormal development conditions of the financial system, if the capital injection into the securities market stops, banks shrink credit, financial speculators or financial institutions fail, it will directly trigger a financial crisis. Within this theoretical framework, we can touch upon the deep reasons for the occurrence of financial storms, that is, the decoupling of virtual capital in the fields of exchange and distribution from real capital, as well as the serious contradictions existing in the fields of production and consumption. In fact, the problem of the US subprime market that caused this financial crisis first manifested as the decoupling of the virtual capital of housing credit and the real capital of the construction industry, and this decoupling originated from irrational behavior in the fields of production and consumption and the polarization of wealth. The outbreak of this financial crisis was caused by the Wall Street bankers playing the trick of ‘making money by bypassing the production process’ without considering the consequences. Marx had already clearly pointed out that abstract labor is the only source of value, and value is the undifferentiated labor of humans condensed in commodities. The virtual economy itself does not create value, and its existence must depend on the real productive economy. Without the real economy, the virtual economy will become ‘rootless grass’, breeding bubble economies and causing false prosperity of the economy. In the process of the outbreak of the Wall Street crisis, the subprime crisis only played the role of a fuse, and the underlying reason lies in the serious expansion of the virtual economy, which has led to a serious imbalance between the virtual economy and the real economy, asset price bubble, and caused the concentrated outbreak of systematic risks accumulated in the virtual economy. It has no essential difference from the economic crisis that occurred at the end of the last century; both are crises of overproduction. The only difference is that in the last classical financial crisis, overproduction was directly manifested as insufficient effective demand, goods could not be sold, and eventually triggered financial turmoil and stock market collapse; while in this modern crisis, overproduction no longer directly manifests as insufficient effective demand, but manifests as strong effective demand, even as ‘over-demand’—the consumption capacity boosted by consumer credit. From the classical crisis to the modern crisis,It is just kicking the ball from the supply side to the demand side, and pushing the outbreak of the inherent contradictions of capitalism from the present to the future.

　　[Keywords] Real Estate Virtual Economy Reconstruction Stability

　　In the market economy, real estate has three basic functions: first, to provide consumers with living and working places; second, to provide individuals and enterprises with investment or speculative opportunities; third, to provide the most basic mortgage assets for the entire credit system (in developed market economies, 90% of bank mortgage assets are real estate). The former is the natural attribute of real estate, which is unrelated to whether it is a market economy, while the latter two are the basic functions of real estate in the operation of the market economy. Without the market economy, there would be no such two functions. The basic functions of real estate in the operation of the market economy trigger the basic positive and negative effects of real estate in the market economy: its positive basic effect lies in the fact that real estate can quickly leverage a large amount of capital through real estate credit to flow into developed real estate areas, leading to further economic development in the region (in China, this always brings huge land transfer and tax revenue for local governments); while its basic negative effect is that it may bring the risk of a bubble economy. It is evident that real estate has strong characteristics of virtual economy in the operation of modern economy, and studying real estate as one of the sectors of virtual economy can better reflect the characteristics of real estate in the market economy.

　　However, in traditional economic theory, real estate (real estate) has always been considered as one of the most important real assets (real assets), belonging to the research scope of the real economy, and the changes in real estate should be consistent with the economic fundamentals. However, the various

　　Research on the characteristics of virtual real estate assets

　　In modern economics, the capitalization pricing method is becoming more and more common, and the influence of the virtual economy part in the entire economic system is increasing, accordingly, the research on virtual economy is also becoming more and more important. There are many definitions and names for virtual economy by scholars at home and abroad, but the view that it exists independently of the real economy is common. The essence of the concept of virtual economy is to generalize a different economic operation method, and its foundation is the capitalization pricing method. It is a price formation system supported by ideas or psychology, while the real economy is a price formation system supported by costs. From this perspective, the price formation of real estate undoubtedly belongs to the virtual economy system.

　　It can be seen that the theory of virtual economy emphasizes the role of expectations, psychological activities, and uncertainty factors, and divides the entire economic system into a real economy system supported by costs and a virtual economy system supported by psychology. Virtual economy is a special economic operation relationship with capitalization pricing as its basis, an asset, whether tangible or intangible, whether financial or real estate, once priced by capitalization, it will have the operation characteristics of virtual assets and should be included in the research framework of virtual economy. All the operation characteristics, operation laws, and major events that occur in the virtual economy are related to this special pricing method of assets. The research on the virtuality of real estate also starts from the capitalization pricing method. The following are related studies:

　　1. Research on the real estate pricing method. Liu Junmin (1998) points out that from the perspective of pricing methods, even the narrow definition of the virtual economy should include real estate. Subsequently, the research group of the Virtual Economy and Management Research Center of Nankai University in the

　　2. Research on the relationship between the characteristics of real estate virtual assets and economic stability. Guo Jinxing (2005) points out that the fluctuations in the real estate market do not necessarily lead to macroeconomic instability, and real estate has the inherent mechanism of stabilizing the economy. The long-term growth trend of real estate prices can make the money supply adapt to the monetary demand in economic growth, and the relative stability of real estate value is of great significance for stabilizing the issuance of money and thus stabilizing economic growth. Wang Zhong (2005) found through the test of econometric models that the impact of real estate price fluctuations on the entire economic value system is direct and explicit. There is a two-way influence mechanism between real estate prices and money supply throughout the range, and real estate prices have a unidirectional transmission mechanism to stock prices and real economic price indicators, affecting the price fluctuations of the stock market and the physical production prices. This shows that as a subset of the virtual economy, real estate occupies an outstanding position in the operation of the national economy. If the real estate sector is regarded as part of the virtual economy, and then examine the relationship with the real economy, it will be found that the impact of real estate price changes on the real economy has not weakened but has shown an increasing trend. Ju Fang (2005) based on the analysis of the particularity of modern economy and the real estate market, puts forward a binary structure analysis framework based on the real economy and the virtual economy, proposes the hypothesis of monetary accumulation in the real estate market, and gives a new explanation of the causes of real estate bubbles. Then, studying real estate bubbles from the perspective of coordinating and handling the relationship between the real economy and the virtual economy, focusing on the internal connection between real estate bubbles, economic growth, and financial development, thus providing a theoretical basis for the coordinated and coordinated development of the three. And points out: The real estate market is a special market with distinct characteristics of both the virtual economy and the real economy. It is precisely because of this

　　The basic ideas for reconstructing the real estate economic theory from the perspective of the virtual economy

　　Based on the recognition of the virtuality of real estate, we can reconstruct the real estate economic theory from the perspective of the virtual economy according to the theoretical framework of the virtual economy (Liu Junmin, 2003). This reconstruction includes several organic components: ① Research on the characteristics of virtual real estate assets. This is the research on the virtuality of real estate from the perspective of capitalization pricing, which is the behavioral basis of the virtual economy. ② Research on the stability of real estate itself. Firstly, starting from the strong volatility of the operation characteristics of the virtual economy, and then studying the stability of real estate as a component of the virtual economy. ③ Studying the relationship between the characteristics of virtual real estate assets and macroeconomic stability from the perspective of prices. It explains the interaction between real estate prices and the macro economy – how real estate affects the macro economy and what impact the macro economy has on the real estate market. ④ Elaborating on the relationship between the characteristics of virtual real estate assets and macroeconomic stability from the perspective of capital flow, which includes monetary capital flow and credit capital flow. The analysis of the relationship between the characteristics of virtual real estate assets and macroeconomic stability (fluctuations) constitutes the core part of the new real estate economic theory. ⑤ Pointing out that under the conditions of the virtual economy, the government should strengthen its intervention in the real estate market to promote economic stability. ⑥ Case studies. Research on the relationship between the development of the real estate industry in countries such as the United States, the United Kingdom, Japan, China, and the stability of the macro economy.

　　Therefore, the analytical framework diagram for reconstructing the real estate economic theory from the perspective of the virtual economy is roughly as follows:

　　The significance of reconstructing the real estate economic theory from the perspective of the virtual economy

　　Under the background of economic virtualization, studying the virtual nature of real estate and the stability of the macro economy has important theoretical and practical significance. Generally speaking, reconstructing the real estate economic theory from the perspective of the virtual economy has two basic characteristics: first, emphasizing the investment and speculation functions of real estate, thus considering the stock market, bond market, commodity futures market, and other markets as a whole to examine real estate, and to examine the laws and impacts of capital transfer and flow in these fields; second, emphasizing the virtual nature of real estate as an asset and the possible risks of bubble economy caused by real estate. This kind of research from the perspective of market economic functions will help to grasp the development of the real estate economy as a whole. Specifically, it is manifested in:

　　It is conducive to correctly interpret the development of the real estate market. Real estate plays a special role in the national economy. Traditional economic theories are difficult to effectively explain the ‘anomalies’ in the operation of the real estate market. Only through in-depth research on the virtuality of real estate can we have a deeper understanding of the definition and research field of the virtual economy; we can also have a deeper understanding of the theoretical starting point of the virtual economy, which regards the entire economy as a value system rather than a material system; this kind of research will certainly enrich the theory of the virtual economy.

　　It is conducive to improving the effectiveness of macro-control policies. Studying the relationship between real estate virtuality and macroeconomic stability points out that the development of the real estate market is conducive to maintaining the fairness, stability, and coordinated development of the entire society, which provides a theoretical basis for the government to carry out macro-control of the real estate market objectively, and is conducive to improving the effectiveness of the government’s implementation of macro-control policies.

　　It is conducive to promoting the coordinated development of the real estate market and the real economy sector. The real estate market and the real economy are closely connected. The healthy development of the real estate market is crucial for economic growth. Studying the characteristics of virtual real estate assets and macroeconomic stability is conducive to promoting the coordinated development of the real estate market and the real economy sector, thus serving economic growth.

　　It is conducive to the construction of a harmonious society. The development of the real estate market is related to the well-being and stability of the people, and the wealth distribution effect caused by real estate bubbles may exacerbate the gap in income distribution, leading to the intensification of contradictions among social stakeholders. Currently, the real estate market in most countries is developing rapidly, and the contribution rate of real estate to the national economy is also increasing year by year. The real estate industry has also become a pillar industry of the national economy, and the growth of GDP in various countries is strongly dependent on the real estate industry. Under such circumstances, if the real estate industry develops abnormally, it not only leads to the decline of the real estate industry but also has a negative impact on the stable development of the financial system and even the entire national economy. Therefore, recognizing the virtuality of real estate and solving the problems in the development of the real estate market on this basis is related to the operation of the entire national economy, financial security, investment decisions, and social stability, and is related to the construction of a harmonious society.

　　[References]

　　[1] Alan Greenspan. New Challenges for Monetary Policy. Speech at a symposium sponsored by the Federal Reserve Bank of Kansas City in Jackson Hole [R]. Wyoming, August 27, 1999.

　　[2] Liu Junmin. From Virtual Capital to Virtual Economy [M]. Jinan: Shandong People’s Publishing House, 1998: 39-42.

　　[3] Liu Junmin. Theoretical Framework and Propositions of Virtual Economy [J]. Journal of Nankai University (Philosophy and Social Sciences Edition), 2003, (2).

　　[4] Wang Qian. Characteristics of Virtual Real Estate Assets and Macroeconomic Stability [D]. Doctoral dissertation, Nankai University, 2006.

　　[5] Wang Zhong. Research on the Stability of Virtual Economy [D]. Doctoral dissertation, Nankai University, 2005.

　　[6] Li Jie, Wang Qian. Theoretical and Empirical Analysis of the Characteristics of Virtual Real Estate Assets [J]. Contemporary Finance, 2006, (2).

　　1. Significance of the topic

　　2. Briefly describe the level and development trends of the topic in the field

　　3. Content and implementation plan of the design and research of the paper

　　4. Main key technologies, process parameters, and theoretical basis

　　5. Design characteristics and innovations of the research (paper)

　　1. Significance of the topic

　　As a complete e-commerce process, just like a complete process of goods circulation, if it is subdivided, it can be decomposed into four main components: merchandising, logistics, information flow, and monetary flow. Any complete process of goods circulation, including complete e-commerce, is also the process of achieving these ‘four flows’online casino method and The latest entrance. Now it seems that merchandising, information flow, and monetary flow can be effectively realized through the Internet, and the transfer of ownership of goods can be easily completed online. However, this is still a ‘virtual’ economic process. The final allocation of resources still needs to be realized through the physical transfer of goods. That is to say, although the Internet can solve most of the problems of goods circulation, it cannot solve the ‘logistics’ problem. My paper aims to briefly analyze and explain the importance of logistics distribution for e-commerce and the current situation of logistics in domestic e-commerce.

　　2. Brief Introduction to E-commerce and Logistics Distribution

　　For a period of time, there were some misunderstandings about e-commerce, believing that online transactions are e-commerce. This misunderstanding lies in the fact that online transactions do not complete the actual transfer of goods, but only complete the transfer of the ‘ownership certificate’ of goods. More importantly, the transfer is the physical transfer of goods that accompanies the transfer of the ‘ownership certificate’. It is only when this transfer is completed that the final change in the ownership of goods occurs. During the planned economy period, this transfer relied on picking up goods. Under the conditions of a market economy, after the market has shifted from a seller’s market to a buyer’s market, this transfer then relies on distribution, which is something that cannot be solved on the Internet. However, the current development situation of our country is rather concerning. China’s logistics is 30 years behind developed countries, and the logistics industry has only started to take shape in the past 6 or 7 years and has entered a period of development. Although China’s logistics industry is developing rapidly, the infrastructure is not entirely backward, but the service system related to logistics is backward. Due to the influence of the planned economy, the socialization degree of logistics in our country is low, and the logistics management system is also chaotic. E-commerce is a product of the integration of the network economy and modern logistics. To truly realize e-commerce, it is necessary to first solve the bottleneck of logistics and improve the logistics management system. Establishing the service system related to logistics is essential. When the logistics industry is on the right track, the road of e-commerce will also be relatively smooth. Super Secretary Network

　　3. Outline of the paper

　　Chapter 1: Traditional logistics can no longer meet the development requirements of e-commerce

　　1.1 The Relationship between E-commerce and Logistics

　　1.2 Traditional Logistics and Modern Logistics

　　Chapter 2: The Impact of E-commerce on Modern Logistics

　　The advent of the era of e-commerce has brought new development to logistics, endowing it with a series of new characteristics.

　　2.2 The impact of e-commerce on the circulation field

　　2.3 Supply chain technology

　　2.4 Changes in supply chain management

　　2.4.1 Short-circuiting of the supply chain

　　2.4.2 The direction of goods flow in the supply chain changes from ‘push’ to ‘pull’

　　Chapter 3 Foreign E-commerce Logistics Solutions

　　Chapter 4 Summary

　　References:

　　[1](USA) Frazelle, Ren Jianbiao. Logistics Strategic Consulting[M]. China Finance and Economics Publishing House, September 2003;

　　[2]Wang Ying, Sun Linyan. Supply Chain Logistics Balance Analysis[M]. Tsinghua University Press, October 2005;

　　The impact of e-commerce on traditional accounting assumptions

　　Accounting theory and practice are based on a series of accounting assumptions, and the proposal of accounting assumptions has played an immeasurable role in accounting theory research and accounting practice. E-commerce has had a certain impact on the four assumptions of accounting entity, going concern, accounting period, and monetary measurement, so we need to re-understand and recognize them so that they can meet the needs of decision-makers who use accounting information on the Internet.

　　The accounting entity assumption defines the specific accounting scope from a spatial perspective, and only on this assumption do assets, liabilities, and owners’ equity and other accounting elements have a spatial attribution. However, the virtual enterprises that emerge with the development of e-commerce are different from the traditional enterprise organizations in the sense that their ‘entity’ is a loose alliance whose life and space change over time. For virtual enterprises established for a project with a longer duration, their accounting entity will be different from the traditional entity, that is, the relatively stable alliance; but for temporary alliances with a short lifespan, the accounting entity has little practical significance.

　　The going concern assumption is that there is no possibility of liquidation and bankruptcy for the entity in a predictable period in the future. The value of enterprise assets is priced at historical cost rather than at current market value; the determination of income and expenses is based on the accrual basis rather than the cash basis. For virtual enterprises that may dissolve at any time, the going concern assumption will face challenges. Generally speaking, the income and expenses of virtual enterprises are completed within the same transaction period, and the cash basis is relatively more reasonable than the accrual basis. In addition, for virtual enterprises where all accounting elements come from the members, using the current market value method as the basis for valuation will better reflect the actual quality status of the accounting elements of the alliance, thus having more practical significance.

　　Due to the fact that e-commerce is based on high-speed networks and can be completed in a very short time, virtual enterprises may dissolve, and the accounting period assumption also faces challenges. Therefore, using the transaction period as the accounting period is more suitable for virtual enterprises. The requirement for monetary measurement assumption in e-commerce is relatively higher than that in traditional accounting, developing the traditional monetary measurement into electronic monetary measurement, and the trend of paperless currency is emerging. In addition, the application of e-commerce has brought about improvements in the adaptability, service quality, and competitive ability of enterprises, which are crucial for the survival of enterprises in the information society but cannot be measured in monetary terms. Therefore, in terms of measurement, non-monetary environmental information and additional explanations of the financial statements should be attached.

　　The impact of e-commerce on accounting organizations

　　While changing people’s daily life patterns, e-commerce also brings about changes in enterprise management and organization. The impact of e-commerce on the basic assumptions, basic principles, and accounting reports of accounting theory ultimately affects the accounting cycle, bringing about changes in the organization and work methods of accounting organizations and the functions of accounting personnel.

　　The impact of e-commerce on accounting organizations mainly includes the following four aspects: 1. Improve work efficiency. Through online banking, the efficiency of capital settlement is greatly improved, making the exchange of accounting information more convenient and direct. The timely acquisition of online transaction information improves the adaptability of the financial accounting system. 2. Change work methods and work environments, so that the geographical distribution of accounting functions is no longer restricted by transportation conditions. 3. Adjust and merge work tasks. The use of information technology for e-commerce makes many tasks completed by machines automatically, and many job positions will disappear or merge. The change of work tasks is the basis for the change of the organization. 4. New environments have brought new requirements for staff. The transmission and processing of e-commerce information require the operation of computers, which requires that accounting personnel be both excellent computer operators and high-level accountants who are proficient in various software. In addition, most companies on the Internet are international enterprises engaged in mutual cooperation, involving different languages, business, accounting methods, and social and cultural backgrounds. This also requires that network accounting personnel be familiar with international accounting and business practices and have a broad knowledge of international social and cultural backgrounds.

　　E-commerce calls for network finance

　　The impact of Internet technology on accounting theory and practice promotes that future accounting software must meet the needs of future accounting complexity, diversity, and networking. The Internet is the second industrial wave in the global IT field after the PC, bringing about major changes in the IT industry, global economy, and society, making e-commerce the business method and survival way of enterprises in the network era. WEB technology makes ‘big companies become small and small companies become big’.

　　Network financial software aims to integrate and realize corporate e-commerce, providing a financial management software system with various functions under the internet environment, including financial management models, accounting work methods, and their various functions. Network financial software is an important component of e-commerce software. To meet the requirements of e-commerce, network financial software must provide new features. Firstly, in terms of management methods, it must achieve business collaboration, remote processing, online management, and centralized management. In terms of work methods, it must support online office, mobile office, and other ways, and be able to handle new media such as electronic documents, electronic money, and web data. Secondly, from the perspective of software functions, network financial software must provide functions such as remote reporting, remote auditing, online payment, and online financial information query on the basis of the current financial software, and support online quotation, online procurement, online services, and online banking. Thirdly, network financial software must take network technology as the core and develop and operate on the mainstream development and operation platforms of internet/e-commerce application systems.

　　[Keywords] Internet finance, big data, commercial banks

　　I. Introduction

　　(I) Background

　　With the rapid development of the Internet in our country, the Internet model has rapidly occupied all walks of life, and our country’s Internet economy has also achieved rapid development. By 2015, the number of Internet users in our country had reached 900 million, this庞大的数字 indicates the huge potential of the Internet market in our country. In addition, the government’s big data policy has also begun to tilt towards the Internet industry, indicating the arrival of beautiful opportunities in the era of Internet big data. The development of Internet finance’s financing and investment modules has also made great progress, with the scale of third-party payment transactions reaching 11.9 trillion yuan, and the scale of third-party mobile payment transactions reaching 9.5 trillion yuan.

　　By studying the profit models of Internet finance in the context of big data, a good theoretical foundation can be provided for the future development of Internet finance in our country. At the same time, it can make a comparison of the advantages and disadvantages of Internet finance and traditional finance under the big data environment, providing a good plan for the transformation of traditional finance. In addition, it provides good solutions to the problems of Internet finance, thus benefiting the healthy development of Internet finance in our country.

　　(II) Relevant theories and concepts

　　Internet finance is a new emerging field where traditional financial industries are combined with the spirit of the Internet. The spirit of the Internet, “openness, equality, collaboration, and sharing,” has penetrated into traditional financial industries, producing fundamental impacts on human financial models, and financial industries with the spirit of the Internet are collectively referred to as Internet finance.

　　”Big Data” refers to massive data sets collected in various forms from many sources, often with real-time characteristics. In the case of B2B sales, these data may come from social networks, e-commerce websites, customer visit records, and many other sources. These data are not the norm of the data sets in the company’s customer relationship management database.

　　Game Theory, also known as对策论, is both a new branch of modern mathematics and an important discipline in operational research. Game Theory mainly studies the interactions between formalized incentive structures. It is a mathematical theory and method for studying phenomena with characteristics of struggle or competition.

　　2. Analysis of Profit Models of Traditional Finance

　　(I) Analysis of Profit Models of Traditional Financial Institutions

　　In a broad sense, China’s traditional financial institutions include banks, funds, insurance, securities companies, and so on. These companies all belong to China’s traditional financial institutions. The profit models of traditional finance are simply introduced for different institutions.

　　1. Banks. The main profit model of China’s banks is to absorb deposits and pay interest to depositors, while also providing external mortgages and collecting loan interest, with the difference between the interest on loans and the interest on deposits being the profit, as well as income from intermediary business, inter-bank lending, acceptance bill discount interest income, letters of credit, custody business, and so on. These constitute the profit sources of banks.

　　2. Securities. Securities are a general term for various economic rights certificates. Therefore, in the broad sense, the securities market refers to all places for the issuance and trading of securities, and in the narrow sense, it is also the most active securities market, which refers to the capital securities market, currency securities market, and commodity securities market.

　　3. Insurance. Insurance companies are companies that sell insurance contracts and provide risk protection. Insurance companies can be classified as life insurance companies and property insurance companies. According to the Insurance Law of the Republic of China, both must be operated separately. Therefore, some insurance companies have established holding companies, under which there are independent accounting life insurance companies and property insurance companies. Reinsurance companies are insurance companies for insurance companies, which diversify and transfer the risks assumed by insurance companies.

　　(II) Limitations of Traditional Finance in the Context of the Internet

　　First, the product variety advantage is not obvious, the investment threshold is high, and the customer experience is poor. The繁琐 and complex procedures of banks make some customers prefer to avoid them, and in addition, the bank’s financial products in recent years are not centered on customers, and the customer concept is poor.

　　Second, there is a single channel. For traditional financial institutions, more customers come from physical channels, and the customer base of commercial banks is mainly from branches, while there is a lack of online customers and sources of online customers, and the online market promotion strategy is lacking, as well as market foresight.

　　Third, traditional management strategic thinking leads to slow development of banks. Banks have a strong political color, have always been state-owned, and the strategic management of banks is also based on national strategic management, so the transformation of banks has always been relatively slow.

　　Fourth, there is a lack of a good talent selection mechanism and internal promotion channels. In modern management, competitive talents can bring development to the company. The competition and selection of bank talents are also lacking in rationality, and many traditional banks are dominated by relationships, leading to a lack of fair competition mechanisms within the bank.

　　3. Analysis of Profit Model of Internet Finance

　　(I) Operation Model of Internet Finance

　　Firstly, third-party payment enterprises refer to non-financial institutions that act as intermediaries between payers and payees, providing network payments, pre-paid card issuance and pre-acceptance, bank card settlement, and other payment services. Representative enterprises include Alipay, YeePay, LAKALA, and Tenpay as internet payment enterprises, and Quick Money and China UnionPay as financial payment enterprises.

　　Second, P2P micro-loan. P2P finance is also known as P2P credit, referring to the small loan transactions between individuals, which generally requires the assistance of professional e-commerce network platforms to help establish the borrowing and lending relationship between the two parties and complete the relevant transaction procedures.

　　Third, crowdfunding financing model. The crowdfunding financing model is an innovative model based on ‘Internet + finance’, and its significance lies not only in the financial innovation itself, but also in the challenges it poses to the traditional financial field and financial industry, and it has a certain degree of disruptive nature.

　　Fourth, the virtual electronic currency model. Online casino and How to find it is a kind of network Online casino and How to find it issued and managed by computer calculations or network communities, which can be used to buy some virtual items, and can also be used to buy real-life items with Online casino and How to find it like Bitcoin.

　　(II) Main profit income sources of Internet finance

　　Currently, the development of Internet finance in our country is rapid, and many business models win with scale. The main profit source of the P2P model is to earn the difference between the middleman, and the interest difference between borrowers and lenders is the main source of profit. The main profit source of Online casino and How to find it is the profit obtained after deducting the corresponding costs from the revenue of selling Online casino and How to find it. For crowdfunding financing models, the profit model is mostly realized through the form of collecting commissions, followed by many crowdfunding platforms also adopting a profit-sharing model or advertising model, that is, after the success of crowdfunding, a certain amount of advertising fees is collected.

　　Four, the research on the profit model of state-owned commercial banks under the perspective of big data and Internet finance

　　(I) Analysis of the choice of commercial banks and Internet finance from the perspective of game theory

　　1. Assumption premise

　　First, in the financial market, there are only two participants: commercial banks and Internet finance.

　　Second, the assumption of the economic man. Commercial banks and Internet financial institutions are two rational economic men, making decisions based on their own interests to maximize individual benefits.

　　Third, in response to Internet finance, commercial banks can take measures of cooperation and non-cooperation, that is, the choice set is (cooperation, non-cooperation). When responding to commercial banks, Internet finance adopts measures of cooperation and non-cooperation, that is, the choice set is (cooperation, non-cooperation).

　　Fourth, the game process between Internet finance and commercial banks is a complete information dynamic game, that is, in the game process, commercial banks have a clear understanding of the transaction model and advantages of Internet finance, and Internet financial institutions also understand the advantages of commercial banks.

　　2. Game Process

　　Game Model of Commercial Banks and Internet Finance

　　The beginning of the game process is when commercial banks make the first choice, as shown in the figure above. The top commercial banks first make a choice information set (cooperate, not cooperate). If commercial banks choose not to cooperate, the game ends, and each starts its development with the goal of maximizing its own interests.

　　If commercial banks choose to cooperate, the choice will then be made by internet financial institutions. At this time, internet financial institutions can choose to cooperate or not. If they choose not to cooperate, internet financial institutions can leverage the advantages of commercial banks and integrate their own advantages to vigorously develop themselves, while commercial banks cannot use the advantages of internet finance to develop themselves. If internet financial institutions choose to cooperate, they can complement each other’s strengths and achieve a win-win situation.

　　From the above figure, we can see the situation and status of commercial banks in the game. If they choose not to cooperate, they will be at a disadvantage and may be occupied by internet finance in the original market. If they choose to cooperate, and internet finance chooses to cooperate, both parties can achieve a good development situation. If internet finance does not choose to cooperate, commercial banks will become the sacrificial lamb, and their advantages will be exploited by internet finance, gradually marginalized by internet finance.

　　Whether internet financial institutions choose to cooperate can be seen from their development structure. If they choose not to cooperate, they will inevitably be hindered by moral risks, and make choices to maximize their own interests, which will inevitably have a negative impact on credit in the short term. Therefore, from a long-term perspective, it is more beneficial for internet financial institutions to cooperate with commercial banks according to the principle of maximizing their own interests. To avoid the occurrence of non-cooperation, commercial banks will choose to sign a mutual cooperation agreement with internet financial institutions to maintain the state of cooperation.

　　(II) Innovation of Profit-Making Models of Commercial Banks under the Background of Big Data and the Internet

　　The rapid development of the internet means that the big data of commercial banks must be the foundation for their development. Big data capability will become the core competitiveness of banks. The key element of ‘core competitiveness’ is ‘irreproducible’ and ‘irreplaceable’.

　　Data is the strategic asset of large banks. With the development of data mining technology, banks can be regarded as data-intensive industries, whose assets are not only loans, but also data. It is the key difference between large banks and small banks, as well as between modern banks and traditional banks, to treat data as an important asset for protection and operation. Moreover, the wealth of data is limitless, which can be continuously mined and created. Recently, many international organizations have been discussing how to quantify the value of intangible assets such as data.

　　Commercial banks refine customer needs through data mining of their existing customer base, improve customer service quality, and thus change the current predicament of banks. Innovate service models, improve service efficiency and convenience. Every user will apply for a bank card, use this foundation for the installation of related client software, provide financial services for customers with a balance, and develop various financial products and channels of internet banking.

　　In the future business model of commercial banks, the focus will shift to big data customer resources as the core, with data resources as the main competitive force and profit source, to expand and develop related banking business.

　　V. Conclusion

　　In the new economic era characterized by networking and big data, finance and big data are cross-integrated. Big data helps to improve the transparency of the financial market, supports business decisions by quickly obtaining valuable information from massive data, and further promotes the development of the financial industry. Big data promotes the precise marketing of Internet financial enterprises and improves customer experience.

　　E-commerce was initiated by the United States in the early 1990s and rapidly developed worldwide. According to the current operation and development trends of corporate e-commerce, it can be divided into two application levels: one is the general e-commerce level. It mainly manifests as online business activities between individual enterprises and between enterprises and consumers. The other is the e-commerce community (E-business Community, abbreviated as EBC) level. In the e-commerce community, inter-enterprise resources from different regions and different enterprises are quickly combined into a unified business entity that transcends spatial constraints through network means such as Internet Extranet, Intranet, and secure virtual private network VPN, and enterprise operation rules, so as to launch high-quality, low-cost products and services at the fastest speed. The e-commerce community is the advanced stage of e-commerce application.

　　E-commerce has created an automated, paperless, and digital social and economic environment, changing the production mode and management model of enterprises, and thus also changing the environment of traditional accounting operations. With the continuous improvement of the degree of business electronization in our country, accounting issues under e-commerce will gradually emerge, and the following ten issues are only the author’s preliminary exploration, hoping to throw a brick to attract jade.

　　I. The Impact of E-commerce on Traditional Accounting Theory

　　Any accounting theory is always based on certain accounting environment and practical basis. E-commerce has greatly changed the traditional accounting environment and will inevitably have an impact on accounting theory. For example, e-commerce is an economic organization established on two bases, but it is a virtual enterprise in terms of both organization and geography, and there is instability in the composition of internal members and the survival time of the entire organization, which brings difficulties to the identification of accounting entities and the judgment of whether they will continue to operate. The accounting entity assumption and the assumption of continuous operation in traditional accounting theory will be challenged. For example, digital products, praised as the largest and most obvious driving force of the emerging digital economy, are not only different in form from traditional material assets, but also cannot be accounted for and measured by the methods of material assets. The traditional accounting element theory and the corresponding measurement principles need to be developed.

　　The impact of electronic commerce on relevant accounting regulations

　　In traditional business activities, from signing contracts, fulfilling contracts to payment settlement, the information flow and capital flow accompanying the business process are generally in written form and confirmed by the person in charge, and accounting systems, accounting settlement systems, and auditing systems all depend on these original materials. Electronic commerce has created an automated, paperless, and digital social and economic environment, where digital signatures have replaced paper signatures, which necessarily brings an impact on the current commercial regulations (including accounting regulations) adapted to paper transactions. Issues that need to be addressed include: (1) The confirmation of the method of identity authentication of the parties to the transaction in accounting, namely, the formulation of legally recognized authentication methods for all parties participating in online transactions; (2) The confirmation of the legality of electronic contracts in accounting, including the rules and paradigms of electronic contracts, the conditions for constituting effective electronic written documents and original documents; procedures for supporting digital signatures and other identity authentication methods; provisions on the legality and validity of digital vouchers, etc.; (3) Electronic payment management, namely, the specification of the issuance and receipt of electronic payment orders and the rights, obligations, and responsibilities of the relevant parties.

　　The impact of electronic commerce on traditional currencies and their settlement systems

　　The impact of electronic commerce on enterprises’ traditional currencies and settlement systems is significant. The dominant position of traditional checks and cash will gradually be replaced by ‘lottery and How to find it’. ‘lottery and How to find it’ is a credit currency circulating in the market, reflecting the value of goods in accordance with legal currency units. It is actually composed of a set of numbers, containing the user’s identity, password, amount, and other contents, and stored as a digital value unit (DVU) in the form of bytes on personal computers. ‘lottery and How to find it’ can be downloaded from an account provided for payment via the Internet, or purchased online using a digital credit card. The corresponding financial institutions are online banks (or virtual banks) without bank halls or branches, only Internet sites. The emergence of ‘lottery and How to find it’ has also given rise to new forms of financial crimes and various fraudulent behaviors. Issues such as how to ensure that some of your data is not stolen and how to ensure the authenticity of the other party have become the most prominent issues in the online payment of electronic commerce.

　　IV. Issues in Accounting for Digital Products

　　In traditional business activities, products such as computer software, newspapers, films, and television products appear in the form of physical products. In accounting, they are recognized and measured as inventory according to the historical cost principle, and their purchase, sales, and inventory quantities and amounts are accounted for and reflected in the accounting statements. In the context of e-commerce, digital products have exceeded the constraints of resource limitations and can be copied in quantity and content without limit. Reflecting the value of assets in the manner of physical products has lost its significance. In specific accounting calculations, these products cannot reflect the specific quantities and amounts of inventory, but only the sales quantity and sales amount. The widespread use of digital products is an important feature of the digital economy and will undoubtedly become one of the important industries in the future. Therefore, the accounting community needs to study the recognition, measurement, and reporting of digital products from accounting theory to practice, including accounting standards.

　　V. Issues in Establishing an Online Real-time Accounting Reporting Model

　　The traditional accounting reporting model generally refers to the way enterprises provide accounting reports to the outside world, especially the way listed companies disclose accounting informationsports betting online websiteJoin us. In the context of e-commerce, the enterprise accounting information system is based on the Internet, Extranet, and Intranet. Whether it provides regular information or real-time information, comprehensive information or detailed information, whether it provides information to creditors and investors or to the general public, the technical limitations no longer exist. Establishing an online real-time reporting model has become a feasible option, which brings both opportunities and challenges to the development of the traditional accounting reporting model: It is reflected in the objectives of accounting reports, where the traditional accounting reporting model will focus more on providing users with information helpful for decision-making in the future, reflecting the management responsibilities of the management personnel; (2) It is reflected in the accounting reporting cycle, where the periodic reporting model based on the cost-benefit principle of分期假设 will be replaced by a real-time dynamic reporting model limited by time and place; (4) It is reflected in the elements of accounting reports, where the traditional model divides the elements of accounting reports into assets, liabilities, equity, income, expenses, profits, etc., which are already unable to meet the requirements of decision-making usefulness. It is the trend to refine the elements of accounting reports to fully reflect the real-time information of the enterprise’s production and operation process and events; (4) In adopting the aforementioned online real-time reporting model, it is necessary to study how to regulate and constrain the accounting behavior of reporting entities through accounting regulations and standards, as well as how to conduct online audits.

　　Sixth, the issue of internationalization of accounting.

　　E-commerce based on the Internet is essentially global in nature. In recent years, with the promotion of the United States, international organizations such as WTO, APEC, and OECD, as well as developed countries, have successively issued e-commerce documents, and the international e-commerce framework is taking shape, facing profound changes in traditional international trade methods. In addition, e-commerce also provides new operational space for the development of international capital markets such as multinational corporate cooperation and international securities markets. The development of international e-commerce poses challenges to the international differences in accounting standards. Different accounting standards reflect different accounting information. If these differences require special adjustments by investors, both parties, or even multiple parties outside the network, it will affect the role of e-commerce. Therefore, the author believes that with the approaching entry of China into WTO and the increasing application of e-commerce, it is not in line with the trend of the times to overemphasize the national characteristics of accounting standards in the process of formulating specific accounting standards in our country.

　　　　　　Abstract: The revitalization of the financial industry is the core link of the ‘post-crisis era’. This financial crisis has prompted us to deeply reflect on how to balance the real economy and the virtual economy. Virtual economies that are disconnected from the real economy have difficulty in risk control. For developing countries, especially China, they are often passive bearers of risk. Due to the asymmetric risk distribution mechanism between developed and developing countries and the unequal status in the international monetary system, developing countries not only find it difficult to gain benefits but also have to bear the costs.　

　　After the Cold War ended in the last century, the relaxation of financial regulation in developed countries, the expansion of overseas investment, and the rapid update of financial tools accelerated the process of financial globalization. Under the conditions of economic globalization, the virtual economy has obtained an unparalleled high return globally, with resources being massively drained from the real economy and flowing into the stock market, bond market, and real estate market, pushing up global asset prices. Moreover, the increasingly inflated and rising asset prices further absorb resources from around the world, concentrating them in the virtual economy sector. Added to this is the diversified business model of mixed operations, which greatly promotes the expansion of the virtual economy, excessive financial innovation, and excessively high leverage ratios of financial institutions. Along with the expanded role of financial markets, systemic risks have emerged, leading to a global economic crisis.　

　　The occurrence pattern of the new financial crisis　

　　The expansionary monetary policy of the United States will promote the economic prosperity of countries outside the United States, with the main transmission mechanism being the world’s low-interest rate channel rather than the trade channel. Low interest rates will reduce corporate financing costs, increase investment and consumption, making product market liquidity abundant, and at the same time, boosting real estate prices and stock price indexes. Securities related to these products are also abundant in the United States and other countries, thereby increasing the virtual wealth of investors. However, this virtual asset is not based on production and balanced consumption of investors, but on the expansion of asset market liquidity. In addition, the world today is in an asymmetric state, mainly due to the asymmetry between developed and developing countries. Developed countries will always transfer economic risks, so developing countries are always in a disadvantageous position. Added to this is the complexity of financial instruments and the interconnectedness of global capital markets, which makes the financial crisis originally existing in a certain economic interest system spread to the global level.　

　　The “Triffin Paradox” holds that the trust in the dollar is directly related to the Bretton Woods System, and the structure of the Bretton Woods System makes this trust difficult to maintain in the long run. The “new Triffin Paradox” recognizes that the reserves of developing countries mainly come from the US deficit. The current status of the dollar-based system makes dollar liabilities flow into its trade partners, and China is now its main trade partner. Therefore, it has no choice but to use dollar foreign exchange reserves to improve its balance of payments. This vicious cycle will exacerbate the expectation of dollar depreciation, causing developing countries to be drawn into it. Therefore, “this crisis is different from previous financial crises; it is a “new global financial crisis”. It is a hybrid of the subprime mortgage crisis of developed countries led by the United States and the financial crisis characterized by the depreciation of foreign exchange reserves of developing countries in the context of asymmetric financial globalization.”　

　　Developing countries face the predicament of the “post-crisis era　

　　After the financial crisis, the United States took the lead in launching its revitalization measures to deal with the crisis, with the most important being the reform of financial supervision. This shows that financial supervision still remains the first choice for controlling crises. Developed countries, facing the development of the financial industry that has already entered the track, prioritize ensuring its safety. This is different from the developing countries that primarily pursue growth. Taking China as an example, China is in the struggle to build its financial system, adhering to the principle of efficiency first. Against the backdrop of globalization, China has no choice but to participate in every transformation of the international economic system. “In the past 30 years of China’s development, capital has contributed 55% to economic growth, credit has become one of the most important factors driving economic growth, and the basic model of China’s economic growth is characterized by large capital driving large growth. After the outbreak of the US subprime mortgage crisis, influenced by policies to stimulate the economy and the “maintain 8%” goal, China’s total credit increased by an astonishing 95.9 trillion yuan in 2009, with the growth rate of loans reaching about 32%, a record high in the past 10 years.” However, the rapid increase in credit can lead to economic overheating and affect the stability of the financial system. Therefore, how to find a balance between efficiency and risk control is a key issue.　

　　III. Suggestions for Countermeasures for Developing Countries　

　　The balance between efficiency and risk control is to pave the way for financial development. Since the crazy virtual economy is like a wild horse, we should set up a saddle for it in advance and monitor it throughout the process. Therefore, institutional design and supervision are particularly important.　

　　VAR method is one of the main methods of financial risk management at present, which uses mathematical tools to calculate the risk of financial markets and is widely used in the financial field of banks. The definition of VAR for a certain asset or investment portfolio is as follows: the probability that the value loss of the asset within a certain period of time (which can be absolute or relative) does not exceed VAR must be equal to the predetermined value (i.e., the confidence level in statistics). It can be expressed by the formula: p(x

　　Additionally, from the consequences of this crisis, some institutions in the financial field still have a strong ability to resist risks, such as HSBC. Deep analysis shows that this is mainly due to its diversified development model and endogenous risk control mechanism. Customers have always been the core of the bank’s development, which can radiate out horizontal globalization and vertical diversification of business. Most developing countries are state-led financial systems, and their capital is difficult to return to the personal sector. Therefore, the bank should also keep pace with the times and develop new businesses, diversify risks.　

　　Finally, it is important to treat financial innovation with caution. Because excessive financial innovation causes a burden on the update of the financial regulatory system, leading to regulatory failure and increasing financial risks. ‘After the emergence of financial innovation, mathematical models with strict assumptions and complex theoretical structures have become the main tools for measuring financial risks, and financial investment has begun to over-rely on quantitative models… That is to say, if we over-cherish mathematical models and describe the changes in market risks with a few parameters, substitute market investment decisions, it will inevitably lead to crises.’ For developing countries, it is necessary to try to weaken the impact of financial information asymmetry, including domestic and international. Only in this way can we avoid the operation out of control caused by the abuse of financial tools. In short, innovation and safety should be given equal importance.　

　　The way of reforming financial supervision in the United States will undoubtedly have an impact on subsequent national reforms, prompting the arrival of a new era of regulation. For developing countries with imperfect financial systems, it still has reference value. ‘Our financial industry has a clear trend of mixed business operations, financial holding groups have already taken shape, and with the high concentration of market share in financial markets, it is imperative to strengthen the supervision of financial mixed business operations.　

　　Keywords: Enterprise Theory, Transaction Costs, The Origin of Enterprises

　　Enterprises have always been of interest to people, and neoclassical economics assumes that enterprises exist naturally, abstracting them into a production function enclosed in a mysterious ‘black box’: factors are input from one end, and products are output from the other. What entrepreneurs need to do is simply to make choices among different production technologies to minimize costs. At this time, entrepreneurs do not need the ability to face ‘risk’ and ‘uncertainty’ as Knight said, nor the ‘innovation’ spirit in Schumpeter’s sense.

　　Perhaps there are too many phenomena that neoclassical economics needs to pay attention to, and the assumption of the natural existence of enterprises indeed reduces a lot of trouble for economists. However, too simple abstraction is difficult to provide a convincing explanation for ‘real-world economics’.

　　Literature Review

　　In 1937, Coase published an article titled ‘The nature of the firm’. Coase proposed that the market and the enterprise are two means of resource allocation that can be mutually substitutable, ‘the most significant feature of the enterprise is the substitution of the price mechanism’. The difference between the two lies in: on the market, resource allocation is automatically regulated by the price mechanism; within the enterprise, resource allocation is completed by authoritative organization. However, there are costs associated with both market mechanisms and enterprise organizations in coordinating production. Further, Coase pointed out that ‘the most obvious cost of organizing production through the price mechanism is to discover what the relevant prices are’. Up to this point, in fact, Coase has already answered for us the logical starting point of the emergence of enterprises, as well as the boundary between enterprises and the market. Enterprises emerge because some transactions within the enterprise cost less than through the market. However, the organizational costs of the enterprise are inseparable from it, and they expand along with the expansion of the scale of the enterprise. When the cost of organizing transactions within the enterprise expands to be equal to the cost of organizing transactions in the market, the boundary between enterprises and the market is also delineated.

　　In his 1983 paper ‘The contractual nature of the firm’, Zhang Wuchang pointed out that the establishment of enterprises is not to replace ‘the market’, but merely to replace the product market with the factor market. This was understood by Zhang Weining as ‘a more profound explanation of the nature of the enterprise’. In fact, Coase had long pointed out that enterprises use ‘authority’ to organize production, which is nothing more than ‘the substitution of a series of contracts with one contract’. ‘Through contracts, production factors agree to服从 the command of entrepreneurs within certain limits in exchange for certain remuneration. The essence of the contract lies in the fact that it defines the scope of the entrepreneur’s rights’. From this, it can be seen that Coase does not simply believe that enterprises are a substitute for the market, but that one enterprise contract replaces a series of market contracts. The mystery of enterprises saving transaction costs lies here. ‘What truly differentiates Zhang Wuchang from Coase is that he believes that contracts in the factor market, that is, enterprise contracts, are not fundamentally different from contracts in the product market.’ Zhang Wuchang once gave an interesting example: if you are not considered to be part of the same enterprise as the department store just because you bought a pair of socks there, then why are you and the worker you employ considered to be part of the same enterprise? In Zhang Wuchang’s view, the contract of buying socks and the contract of employing workers are both market contracts, without any essential difference. It is for this reason that Zhang Wuchang ‘does not know what an enterprise is’.

　　In addition to Zhang Wucheng, Williamson (1975) and Klein (1978) also inherited Coase’s views, believing that firms are a transaction model for saving transaction costs, and a transaction should choose the ‘governance structure’ with the minimum transaction cost to complete (Williamson, 1985). Subsequently, Grossman and Hart (1986) and Hart and Moore (1990) established a model of ownership structure. They believe that when the cost of determining all special powers is too high to make the contract completely, ownership is of great significance. Through the development of Alchian and Demsetz (1972), Williamson (1975, 1980), Klein (1978), Jensen and Meckling (1976, 1979), Zhang Wucheng (1983), Grossman and Hart (1986), and Hart and Moore (1990), etc., Coase (1937) has formed the new institutional school’s firm theory—the theory of firm contracts.

　　2 Firms creating markets

　　The concept of firms creating markets is classically explained in Coase’s paper, which is not only classic in the originality of his paper but also in the series of classic papers that followed. Williamson has carried forward Coase’s thought on transaction costs, founded transaction cost economics, and the theory of firm contracts has become the most influential modern firm theory.

　　We refine Coase’s thoughts and his core view is that firms are a market contract replacing a series of market contracts (Chow, 1996); firms emerge due to the ability to save transaction costs; when the transaction costs within a firm expand to equal the transaction costs of the market, the firm reaches its maximum boundary. With regard to the nature and boundary issues of firms as elaborated by Coase and the new institutional school, this article does not negate them categorically. What needs to be proposed is that Coase simply considers transaction costs as the only factor determining the boundary of firms, which is obviously problematic.

　　Coase believes that enterprises and markets are two mechanisms for resource allocation that perform the same functions and can be interchanged. The most significant feature of enterprises is the substitution of the price mechanism (market). The emergence of enterprises is due to the lower cost of organizing transactions with enterprises compared to the market. Since Coase is discussing the issue of the emergence of enterprises, we must understand Coase’s ‘market’ as a market without enterprises. According to classical views, the market is a place for exchanging products (we do not consider virtual markets in the modern sense). Under the premise that private property rights are effectively protected by law, the owners of factors (including human capital) can freely choose the way to allocate resources – transferring factors to others and obtaining income according to the contract; or organizing production by themselves. It is obvious that according to Coase’s understanding, if a person purchases production factors owned by others – whether it is human capital or non-human capital, organizes production with these factors, and uses the products for market exchange, an enterprise in the sense of Coase has emerged. Marx might not completely agree with this view. In Volume I of ‘Capital’, Marx mentioned that when the same capital employs more workers at the same time and place to produce the same commodity under the unified arrangement of entrepreneurs, this is the starting point of capitalist production in both history and logic, and the enterprise Marx understands at least includes the hiring of workers. If an individual organizes his own production factors (not purchased) to produce, even if he uses the products for exchange, I cannot call it an enterprise. In this regard, Coase’s ‘market’ specifically refers to the product market and cannot include the factor market.

　　Now, we have understood what kind of concept ‘enterprise’ and ‘market’ meant as described by Coase. Further analysis shows that there is an inextricable relationship between enterprises and factor markets: enterprises create demand for factors, thus creating factor markets. It is indeed a ‘dramatic leap’ when a factor market suddenly emerges from a market that did not have one. On the surface, when the owner of the factor transfers it to someone else to control, he loses the opportunity to organize production personally, and also loses the opportunity to exchange products with others. Isn’t this what Coase elaborated on, Zhang Wuchang’s understanding that factor markets have replaced product markets? From the perspective of the essence of enterprises, whether it is Coase’s statement that enterprises are a substitute for the market or Zhang Wuchang’s understanding that enterprises use factor markets to replace product markets, both are untenable. The emergence of enterprises did not replace (product) markets, but instead created new (factor) markets, which is consistent with the increasingly prosperous market economy. Only when two enterprises are vertically integrated can it be said that enterprises have replaced the market, or that factor markets have replaced product markets, but that is something that happened after the emergence of enterprises.

　　Explanation of the emergence of the firm -质疑Coase

　　Coase explains the origin of the firm from the perspective of transaction costs, believing that when the cost of organizing transactions within the firm is less than the cost of organizing transactions in the market, the firm appears. Smith emphasizes the benefits of division of labor, and it is difficult to coordinate division of labor through the market, and the emergence of the firm is used to coordinate division of labor. Coase (1937) explicitly denies this view: the market itself is used to coordinate division of labor, and there is no need for the firm to do so unnecessarily. Marx believes that the emergence of the firm is related to capitalist production relations, and the firm can expand its scale in the process of production.

　　We assume that three people reach an agreement: A becomes the ‘authority’ in the Coase model, B and C transfer their labor to A, and produce under A’s command. After production is completed, the three products are traded (or distributed) among A, B, and C. Such a ‘firm’ indeed saves transaction costs greatly, but at the same time, it also raises a more profound question: Is this a true firm in the real sense? At first glance, it seems that B and C transfer the main production factors to A, and A commands the production, which seems to conform to the definition of the firm’s ‘hire labor’. However, with a little thought, it is not difficult to find that such a so-called ‘firm’ is just a closed organization – with no energy exchange with the outside world, and production is only for the consumption of the firm’s internal staff. Of course, we can think that this firm will exchange the surplus products with others, but this accidental exchange – just like the accidental exchange between individuals or families – can never make it a true firm. Or, this ‘firm’ also engages in the business of exchanging with others, besides its own consumption. But it can be肯定 that this exchange is purely for physiological or living needs rather than for profit. Because in this primitive society, storing too many products has no value – it will only lead to rot. Let us assume for the sake of argument that this ‘firm’ also engages in the business of exchanging with others. When it finds that some transaction needs cannot be complementary – transaction costs are too high, according to Coase’s idea, it will expand the scale of the ‘firm’ to internalize the market transactions with high transaction costs, and so on. In this way, the scale of this ‘firm’ will continue to expand until all transactions can be easily completed within the ‘firm’. It seems here, Coase’s ‘transaction costs’ provide a very strong explanation for the scale of the firm. But is this a true firm? It is more like a society, or it is like an omnipotent ‘person’, who can arrange the production of everything needed according to his own needs, basically without needing to contact the outside world.

　　The emergence of money and credit is a prerequisite for the large-scale emergence of firms. The social and economic system has developed from self-sufficiency to a division of labor and trade based on households, and people have discovered opportunities for profit in division and trade. However, without money, these opportunities for profit cannot be grasped by people. As Adam Smith (1776) said, only gold and silver are the only means of wealth accumulation. The emergence of money enables entrepreneurs to convert price differences in the market into monetary profits, making the accumulation of wealth possible. Therefore, the conclusion is: the emergence of firms has a natural and inseparable relationship with money, and the emergence of money catalyzes the emergence of firms. The essence of driving profits rather than saving transaction costs is what孕育ed firms from the market. Coase’s view is a topsy-turvy perspective. Coase’s ‘transaction costs’ is more for explaining why firms merge rather than for explaining the emergence of firms.

　　4 Conclusion

　　The emergence of firms is not a replacement for (product) markets, but the creation of a new (factor) market. Firms are not created solely to save transaction costs (although saving transaction costs can increase some profits), the endless pursuit of profits is the essence of firms. Credit money is the only means of accumulating wealth and is a prerequisite for the emergence of firms. Without the currency representing wealth, it is impossible to understand the origin of firms. Coase’s theory of the firm enables firms to break out of the mysterious ‘black box’ of neoclassical economics, but the mysterious color still lingers. It is only when we take off our colored glasses and look at it with a critical eye that we find that what makes the ‘angel’ mysterious is not the halo of the ‘angel’ itself, but our ignorance.

　　References

　　1 Qian Yingyi. Modern Economics and China’s Economic Reform [M]. Beijing: Renmin University of China Press, 2003

　　2 Wei Ying. The Entrepreneurial Firm: Contract Theory [M]. Shanghai: Shanghai Sanlian Press, Shanghai Renmin Publishing House, 1995