The Analysis Of Stock Market Development In Institutional Perspective

Subject to the Institutional Theory of Western New Institutional Economics, the rise of the Western World benefits primarily from the efficient organizations, which have closely relations with the institutional arrangement in function exertion. Along this process, as a main provider of all kinds of institutions, the State plays a prominent role all the way. The Modern Financial Development Theory also quotes theState as a big role in the development of one country's financial industry,especially to the developing countries'.Based on these two theories, this paper firstly conducts the Principal Factor and OLS analysis with some institutional indicators, which influence heavily the development of stock market and also represent the three key aspects of the institutions 梖ormal constraints, informal constrains and enforcement. The result indicates that the macro-institutional indices, which reflect the effect of the informal constrains and enforcement, play a superior role in the development of stock market, and meanwhile the culture environment could not be neglected.Secondly, this paper reviews the sketchy process of institutional construction of China Stock Market, promoted mainly by the State, in the past several years, then tests the effect of the enforcement with the nearly 3 years data. The result shows that some indicators could serve a barometer of the real economic development, despite of some other serious problems accompanying the development of China Stock Market all along, which focused by the Big Talks .Meanwhile, this result certifies that the institutional construction has been playing its role, and the development of China Stock Market has been marching on the first section of the road to the mature or developed one.Lastly, considering the limit of the comprehensive analysis for the above result concerning the enhancement of the macro-institutionalindices, the specialty of the "endowment" of the stock market and the complexity of issues occurred during the process of China stock market development, this paper makes a try of normative analysis for the health development or good governance of China stock market in the perspective of governance under the frame of the Governance Theory of Western New Institutional Economics and the New Governance Theory .