On Legal Economical Analysis Of Stock Market

In the China stock market influenced by multiple powers, the stock market governance structure subject to the government regulatory bodies, the listed companies and the external investors is a key factor influencing the development of stock market. The legal economy method is an effective tool for the analysis of the mixed game. From legal economy, the paper brings forward a solution for coordinating the various dynamic influential factors, and analyses the real situation of the stock market to the maximal extent so that our country may overall build the macroeconomic framework of the rule by law for the stock market.The paper comprises the preface, the conclusion and four chapters. The preface tells the background and significance of the topic, study, research method and writing framework.The first chapter about summary first defines the concept and basic form of the stock market governance structure, introduces the concept, value and analysis method of the legal economy, and discusses the possibility of legal economy analysis for the stock market governance structure.The second chapter is about the status of the stock market governance structure. On analysis of the participant's cost-benefit under the rational choice guide, the paper highlights the lopsided balance of the current securities market governance structure, analyses the abnormal behavior from the market mechanism, the corporate operation and the investor's performance, and points out the necessity that the stock market governance structure must be rebuilt.The third and fourth chapters are about the main ideas about rebuilding of the stock market governance structure. From both vertical and horizontal aspects, they explain the relationship between the different market subjects on the stock market governance structure.The third chapter is on rebuilding of the equal-right legal relation in the stock market governance structure, it first analyses transaction cost by citing "Coase Theorem" analysis, and under the premise of the market failures ,rebuilding the initial property right is the key to resolution of the difficult question of transaction cost between the listed company and the external investors, thus to find the right source and guiding principle of rebuilding equal legal relation and on the basis thereof, the stock market governance structure should be changed from the analysis of material law and procedural law. In the analysis of material law, the paper analyses how to overcome four factors of the market failure. In analysis of the procedural law, the paper analyses how to realize the equal-right legal relation between the listed company and external investors by completion of main dispute-settling mechanism subject to litigation and ADR.The fourth chapter is about rebuilding legal supervision relation in the stock market governance structure. From the realistic option for the regulatory supervision and the long-term changes of the supervisory systems, this part mainly considers how to rebuild the relation between the government and the other subjects. First by citing failure of the government, government intervention worship should be got rid of. Then by the public choice theory, the paper concludes that limiting the scope of regulation and the introduction of the competition mechanism are an important way of building a healthy regulatory relationship. On the basis thereof, the paper gives a detailed analysis of how to determine the boundaries of securities regulation build the multi-level model of supervision based on the expanded self-regulation of securities. The inevitability of system changes and the path dependence determine how to adopt the way of changes is the key to success of the change. The change history of China stock market system shows that the governmental compulsory change of system should be changed and creates the gradual transformation led by the change of system.In the conclusion, the author emphasizes that establishing the new base and waysis the only way to remodel the market governance structure.