Research On The Efficiency Of Withdrawal Mechanism Of China Listed Company

The withdrawal mechanism of China's capital market has gone through a scratch, and gradually perfecting the process of development. Compared with the foreign withdrawal mechanism, it develops time short and fast in China. Keeping special treatment (ST) mechanism as a core, the transition withdrawal mechanism is one of the most important designs in capital market under the China institutional background. Withdrawal mechanism as part of the market supervision system, its operation is based on the long-term health and sustainable development objectives, and investor protection, as the cornerstone of health development of financial market, is one of the criterions of measuring the all systems design. Therefore, this paper, from the perspective of investor protection, researches systematically the efficiency of withdrawal mechanism of listed company.This study full considers the research results and perspective of existing system, we believe that the withdrawal mechanism is a key links of market transaction system, and studying the benefits of system operation is as important as the costs. So it is biased that we negative the value of existing system only based on its cost. Meanwhile, it is also incomplete if we introduce totally the western mature capital market withdrawal mechanism according to its advantages, and the value and robustness of its research conclusions are questioned. In regard to these, this paper, from the current situation, problems, advantages of the existing withdrawal mechanism in China and the investor protection, studies systematically its efficiency through the ways of theoretical derivation, experiences deduction and experiment simulation. Specifically, this paper has three parts:First, it analyzes the efficiency of withdrawal mechanism of listed company in China and the investor protection. In this part, from the perspective of investor protection, we analyze the efficiency of the withdrawal mechanism. We will locate the withdrawal mechanism of listed company in China as "weak, motivation and protection". Investor protection is the starting point, cleaning out the poor listed company is the way, and motivating the managers of listed company is the external expression of the mechanism. The level of achievements of these three objectives could effectively exam the efficiency of withdrawal mechanism operation in China.Second, the disclosure improvement of stock market withdrawal mechanism in China. We analyze the motivation of the quit-market groups on the transitional stage (ST treatment company) disclosure voluntary under the withdrawal mechanism and the improvement of information asymmetry. In fact, the relevant regulations of the existing withdrawal mechanism clearly require the ST company should strengthen the disclosure, reduce the information asymmetry, thereby protect the benefits of investors.Third, it analyzes the design of stock market withdrawal mechanism in China and investors discrimination. We start from a new perspective which is the interaction of the multiple mechanisms under the system changes, and then understand the development and contradiction of China capital market. This paper, based on the interaction and impact between the introduction of the fair value measurement of current capital market and the withdrawal mechanism in China, studies the conflict between the new and old system during the process of capital market transformation and the loss of efficiency accompany with the system. These findings show that the conflict between the international process of capital market in China and the existing supervision mechanism, and provide the more empirical research evidences for the design and transformation of mechanism under the transition economics according to the understandings of the market supervision department.The chapters of this paper as follows:Chapter 1:Introduction. In this section, we give a general introduction to the research background, questions, objectives, significance, contents and methods, and also introduce the organizational structure and technology roadmap.Chapter 2:the theoretical and practical exploration of researching the efficiency of the design of capital market withdrawal mechanism in China. This chapter interprets the birth and development of withdrawal mechanism of China listed company from theory and practice based on the necessity of the market withdrawal mechanism. Meanwhile, according to the evaluation of literature of domestic and overseas and market, it explains and deducts logistically the doubts about the design and development process of capital market withdrawal mechanism, and explores in theory the problems of withdrawal mechanism of listed company and its development direction in the future.Chapter 3:the empirical research of China capital market withdrawal mechanism and investor protection. Based on the mentioned above, this chapter authenticates the many design goals and efficiency criterions of the capital market withdrawal mechanism in China. On the one hand, it authenticates the positive effect of cleaning out the poor listed company, warning the investment risk and activating the governance performance of listed company; on the other hand, it empirical exams the negative effect of the withdrawal mechanism to induce the g the market opportunity behaviors and distort the direction of resources distribution. This starts from the perspective of mechanism operation cost'and benefits, and evaluates comprehensively the level of efficiency of existing withdrawal mechanism in China.Chapter 4:the disclosure improvement of China's capital market withdrawal mechanism—the motivation of voluntary disclosure based on the MD&A. Analyzing the special treatment (ST) listed company from operation deficit to ST, ST to uncap, and the quality and motivation of the content that the annual MD&A disclosure, it shows the positive effect of the withdrawal mechanism on improving the disclosure and slaking down the level of information asymmetry of market.Chapter 5:the analysis of the design of China's capital market withdrawal mechanism and the system efficiency of investor discrimination. This part introduces the measurement method of fair value of the New Accounting Criteria of capital market, and analyzes its agreement with the China's capital market withdrawal mechanism. Also it introduces that the behavior theory is limited to cognition for investors, and through the way of situational simulated methods, and then concludes that how the withdrawal mechanism affected by the introduction of fair value. Thus it could systematically research the information quality, investors decision-making and the impact on the existing market. The conclusion of this chapter provide a new research way for government to develop the capital market supervision mechanism which are suitable for China's own situation.Chapter 6:the conclusion and the recommendations of policy. As a summary of the whole paper, this part, based on the full findings mentioned in the previous five chapters, inducts the research results and enlightens, clears the creativity values and contributions, and as well gives the many recommendations of policy for market supervision. In addition, the limitations of research and the future development prospects are discussed in this part.The innovation of this paper is, from the mechanism perspective of the benefits and costs of system operation, studying the efficiency of the existing China's capital market withdrawal mechanism. Unlike the previous research which only concentrate on the negative effects of the withdrawal mechanism, this paper, starting from the investor protection, systematically and comprehensively explores the aspects of capital market withdrawal mechanism, which are cleaning out the poor listed company, protecting the benefits of investors, diminishing the information asymmetry, and promoting the market change. Specifically including:1. It not only focuses on the current situation of low efficiency of capital market, but also considers the efficiency of withdrawal mechanism from its background, objectives, based on the cost and benefit of the whole performance of system operation. This avoids the low inefficiency of market development process equal to the design of market system. The former is the level of efficiency on the stage of economic development, and the later is the reasonable of the system design which running in the stage. Therefore, the framework of the research considers the reasonable of system design from the cost and benefits of system operation and thus different these two concepts. This study provides a large number of theoretical and empirical evidences for understanding the efficiency of the progressive withdrawal mechanism in China. The design of research framework is an innovation and breakghrough.2. The research contents touch a lot of gaps in the existing capital market, such as management discussion, analysis of disclosure motivate and its efficiency and the interaction of multiple mechanisms of capital market. Especially, it is reasonable that we research the progressive withdrawal mechanism from the intention and quality that enterprises disclosure voluntarily. This perspective and conclusion is creative in the existing research result.3. With regard to the research methodology, this paper introduces the experimental research tools of behavioral finance, and it explores and evaluates the efficiency of mechanism operation through scenario design and experimental method. This is so rare in the financial field. The advantage of experimental research is capable of prior research. Therefore, the study of this paper provides a good research tool for the management to explore the future and change of capital market withdrawal mechanism in China.