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Financial Development Indicators And The Measure Of Regional Financial Development

Posted on:2015-10-21Degree:DoctorType:Dissertation
Country:ChinaCandidate:W Z ChenFull Text:PDF
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As an important department of national economics, financial department has developed a lot since the reform and opening. The financial assets enlarge sharply and the number of financial institution increases significantly, besides the financial regulation and laws consummate gradually. Generally speaking, the performance of financial system has been valued greatly, and both central and local governments already recognize that financial department can optimize resource allocation and promote economic growth. But due to the unbalance of regional economics, financial resources distribute uneven and financial development level variances a lot among regions, which against the target of constructing a harmonious society and achieve common affluence. Thus researching the regional financial development can provide thinking methods of coordinated development of regional economy, and offer some relevant policy suggestions.Establishing financial development index is the foundation of researching regional financial differences, which is also the basic step of empirical analysis, thus we must build reasonable and objective index to reflect the real level of financial development, otherwise the research result is not convince. Through reviewing the financial development indicators in the past literatures, we find scholars have done a lot of effort and build many indicators which can measure the scale and efficiency of financial system. Although this indicators have been widely used and have significant academic value, but we still find some problems, for example, the empirical measurement do not match the theory of financial development, and lack the micro foundation, otherwise many researches misuse the indicators of state financial development to analyze the regional problems. All the issues above affect the objective of financial development level, and cannot support further research of the financial functions.In view of the above research background, the purpose of this paper is to build financial indicators which can measure function of financial development, and have micro foundation, and dedicated to measure the level of regional financial development. So we first review the theory of financial development in the related literature, according to previous research summary, the financial system can lower information asymmetry and reduce transaction costs, and also can mobilize saving and manage risk intensively. So we think that the financial development indicators should measure the effect of the above functions.Built with the micro foundation of financial development data, you need to use micro enterprise data to construct index, you will need to find a contact point of enterprise behavior and the financial development function, this paper argues that the function of the financial development can effectively improve the enterprise’s financing environment, can make the enterprise in the face of the investment projects with a positive net present value when convenient to raise funds, expanding investment, increase output, thus for enterprise, the level of financial development in region will affect the enterprise financing environment and financing cost, then affect the investment and financing behavior of the enterprise and production behavior.Therefore, you can through the financial development function combined with enterprise investment and financing behavior and production behavior.In addition, this paper is to build the regional financial development index, so the combination of regional financial difference between sources, this paper studies the function of financial development from three angles of enterprise investment and financing behavior and the influence of the production behavior:one is the enterprise’s debt financing preference, if the regional financial development level is high, the debt financing costs are lower, enterprises will be more toward debt financing;The second is the enterprise financing constraints, the regional financial development can improve the financing environment, reduce the financing constraints;Three is the enterprise the efficiency of the use of capital resources, the higher the level of regional financial development, the more can improve the resource configuration efficiency of funds, for local enterprises to expand investment funding support, increase productivity, to increase output.In empirical research part, this paper uses the data of listed companies and industrial enterprises database, debt financing tendency by calculation, investment cash flow sensitivity and the efficiency of the use of capital resources, to reflect the enterprise of regional financial system to alleviate the information asymmetry and lower transaction costs, optimize resource allocation function, and through the enterprise micro data to construct the measure function of regional financial development index of financial development.And calculate the eastern, central and western and the financial development level of the provinces.Empirical study found that the eastern region tend to be strongest enterprise debt financing, investment cash flow sensitivity to the lowest and most efficient use of regional financial resources, therefore in the east of the financial development level is significantly higher than the central and western regions;Points in the province of the calculation results are statistically significant differences, so that different regions have different level of financial development in our country, and financial development difference does influence the investment and financing behavior of local enterprises and production behavior, will affect the region’s economic development level.For further analysis of China’s regional economic imbalance provides financial research Angle of view and evidence.
Keywords/Search Tags:Financial Development Indicator, Corporate Financing Preference, Corporate Financing Constraints, Eficiency of Capital Allocation
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