The Research On The Development Of Financial Structure And The Behavior Of Investors And Enterprises In China

The evolution and change of financial structure are important for economic growth, financial development, and have significant influence and role on them. Along with China's reform and opening up, deep-seated reform of the financial system has also been processed, but the problems have emerged also, such as the non-equilibrium and inefficiency in financial system being seriously restricting China's economic growth, and caused that the economic growth is less stable. Therefore, the study of the link among the evolution of financial structure, economic growth and institutional transition is an important issue.According to the studies of Goldsmith, Levine et al, there's a correlation between the financial structure and economic growth, especially the stock market and banking system are essentially two parts of each other, and playing different role in macroeconomic. The banking system is in favor of the development of traditional industries, and the stock market is conducive to the realization of innovation; and in the point of view of information, the bank can effectively alleviate the problem of moral hazard, and stock market is more significant on depressing adverse selection; the scale economy effect of banks reduces information costs virtually, and stock market's information disclosure mechanism promotes the competitiveness among enterprises.This article is based on the above background and research, in view of China's evolution of financial structure, institutional transition, economic growth and so on, carried out a comprehensive study. From the financial structure evolution and investor behavior, the evolution of financial structure and corporate financing channels point of view, the paper researched the micro-level linkages between them; and built financial structure indicators and institutional transition indicators, from the correlation among the financial structure , institution, and the economic growth, conducted an analysis on the mechanism of interaction in depth, and using of large amounts of data and programming, panel data model, VAR model and Granger causality test and other econometric methods to carry out a detailed empirical research.The whole paper includes six chapters, the specific contents of each chapter are as follows, and Chapter 4, Chapter 5 and Chapter 6 are main parts of this academic article.The first chapter is a summary of the theory and related research of financial structure, summed up the financial structure theory since Goldsmith, and analyzed the relationship between financial structure and economic growth, the linkage of financial structure and financial efficiency. Firstly, the article introduced the relevant research results of the theory of financial structure, and further discussed the links between financial structure and financial efficiency, and using of researches of the financial structure and enterprises, financial structure and technological progress, analyzed of the function mechanism of financial structure on economic growth.In Chapter 2, first of all, the paper gives the process and typical fact of China's financial structure evolution, and further analyses the major characters of China's financial structure evolution, and finally there are the main problems and shortcomings in the financial structure. China's financial structure has following main problems: the non-synchronization between the financial structure development's sophistication and rationalization, the asymmetry of financial structure and economic structure, the disharmony in financial industrial, the non-equilibrium in financial market structure, the unreasonable structure of financial assets, and the inappropriate financial regulatory framework.Chapter 3 is discussed the connection between the financial structure evolution and institutional transition. This chapter described the trajectory and process of China's institutional transition, analyzed the non-equilibrium of institution from the point of view of financial supply and demand, and discussed the form and characteristics of institutional transition. First of all, it gives the decision factors of the transition of financial institution and a balanced outcome of the analysis; secondly, researched and compared the financial changes in developed countries, and the study showed that despite the mandatory signs, in the development process, the induced institutional changes tend to dominate in developed countries'financial system changes; finally, summed up China's process of financial institutional transition, and figured out that the financial institutional transition in China is a mandatory change.Chapter 4 is the link of investor behavior and the evolution of financial structure, the first analysis is the distinction between investors and speculators, and then it builds the investor indicators to research the relations between investors and stock price fluctuations, further to research the relationship of evolution of financial structure and investors. On methods in the study, first of all it constructed indicators of investor behavior, and demonstrated the fact that speculators have too high proportion of the participants in China's stock market by using of large amounts of data and descriptive analysis; further described the market demand state by the relative changes in stock prices, and got the final result of indicator from program design, and constructed the linkage model of indicators of investors and listed enterprises, the research results show that the market participants have weak investment characteristics; and they tend to the conservative investment when face of unknown companies; the fundamental analysis correspond to the theoretical assuming, however the proportion is tiny; market participants manage their investments in accordance with fluctuations in the stock market, the condition of stock market has a significant impact on investment behavior.Further, the paper designed the indicator index of financial structure, to build financial development indicators and financial relative structure indicators, the study between them and investor behavior indicator showed that the stock market investors are not concerned about the overall level of financial development, but take market development level into account as key indicator, and investors'investment options are associated with the structure and efficiency of loans, but the financing ratio.Chapter 5 is the study of evolution of financial structure and enterprise behavior, it is to research, in the evolution of financial structure, banks and market's choice characteristics on enterprise, by divided listed enterprises into innovative industry and traditional industry, to carry out the comparative study of distinction between banks and markets'selection.First, utilizing Goldsmith's financial architecture evaluation, it detailed demonstrates our reality of the financial structure, and results show that China's financial system is still dominated by bank system, listed companies'equity financing in China has small proportion, bank borrowings still occupy the dominant position of corporate finance, financial markets'relative backwardness and the monopoly position of banking sector composes the main features of the financial system in our country.Further, the paper builds a combined model of corporate finance channel and corporate finance fundamentals, the estimated results show that debt financing prefers traditional industry and scale economy sectors, and equity financing prefers risk industries and innovation industries, the developing industries are more vulnerable to equity support, rather than the financial support of claims, and the yield indicator is not the key factor which is considered by bank and stock market. Which can be determined is that China's banks and the stock market ignored the ability of the future development of enterprises, and it will definitely lead to the enterprise in stock market can not be achieved in the survival of the fittest mechanism, and result in the drastic fluctuations in the development of China's stock market, the listed enterprises will not offer more contribution to economic growth.Finally, in this chapter, the article's study results of analysis by using indicators of financial structure and enterprise financial indicator are that the extent of China's financial development and financial structural changes have significant impacts on capital structure of enterprises, the greater the total financial, enterprises have more options of financing.Chapter 6 is about the financial structure evolution and economic growth, and starting from the linkage mechanism among financial structure, institutional change and economic growth, first of all, it describes two classical models of evaluating financial structure, the impact of mobility model and the model of technological progress, which analyze the association between financial structure and economic growth, and give different effects on the economy by different financial structure, and further, the paper builds the institutional variables from six aspects of institution, and within factor analysis, the institutional indicators are converted to three factors which are not related to each others. Then utilizing the financial structure factors of Chapter 5's factor analysis, there's a relationship investigation among three types of indicators of institution, financial structure and economic growth, first of all it is to build a simple regression model, and further build a VAR model, and give the results of impulse response function, within the results of empirical analysis, to carry out an in-depth discussion China's financial structure evolution and institutional transition. Conclusions of the study show that: the institutional factors have role in promoting economic growth, but financial development does not exist a significant role on economic growth factors, even there's an impediment on economic growth; China's financial structure transition and institutional transition has not produced the desired effects.Therefore, our focus of financial structure reform should be on the linkages between financial system and real economy, first of all, the total expansion of the financial sector must be accompanied by a solid foundation of the real economy, and further, the bank credit and stock market price fluctuations should be able to achieve the evaluation of the advantages and disadvantages of enterprises, and to promote a mature enterprise eliminate mechanism, and finally, credit system and legal protection should be further improved, so to build a solid foundation of further improvement of financial development and institutional transition.In the reality of prevalence of speculators in China's stock market, stock market has far more intense volatility, corporate finance rely on bank borrowings in a greater degree, stock market financing has short-term effects, transition in the financial system can not provide a strong support for economic growth, only earnestly varying the current issues of the financial system, economic growth will continue more stably.