Study On Some Problems Of Stock Market Based On DEA Method

The emergence of stock market results from the development of free market in resolving the differences between capital demands and supplies. The stock market plays an important role in optimum allocation of capitals, development of modern economy, and invention of new economic policies besides its capital financing function. Because of its short history and fast development nature, the stock market in China is not fully developed yet. Therefore, problems and issues are inevitable. In order to provide an effective methodology for future research, in this paper, the basic theory, model and its development of DEA will be introduced firstly. Secondly applications of DEA theory and method will be introduced, and analyzed its technology nature. Feasibility that DEA applies in stock market's research is indicated. Integrated performance evaluation of listed company, control of equity re-financing, and measuring of herd behavior are studied based on the theory of DEA, behavior finance, optimum capital allocation structure and herd behavior. Later, an integrated performance evaluation model for listed company with multiple independent subsystems, the index models for equity re-financing and measuring of herd behavior are created, respectively. Market analysis has been carried out in terms of the above models and the data obtained from the stock market in China. The results and conclusions are informative and helpful to government monitoring, employers, and investors.