Abstract:

A sound legal system can adjust interest structure of market players by increasing illegal cost and decreasing lawabiding cost; furthermore，it can lead the corporations that were revoked their business licenses to abide by laws. From the perspective of law and economics，this paper analyzes the legal system concerning not liquidating and dissolving corporations which were revoked business licenses from the two angles of cost benefit and information. The author explores the methods to amend dissolution and liquidation system from three aspects: simplifying liquidation procedures，strengthening accountability and improving information transparency.

Key words: revoke business license, corporation liquidation, cost benefit, corporation dissolution, law and economics