Research On Regional Characteristics Of The Listed Companies In Central Region

"Promoting the central region to grow up fast"has become an important topic on the research of regional economic development strategy. The capital market is an important aspect in the rising of the central region. Listed companies, as the main part of the capital market, will play an important role in this process.The listed companies in central region are gradually developing as a group with the development of China's securities market. To the end of 2005, there are more than 200 listed companies in central region. Listed companies have become the backbone of economic development in central region. However, as part of the group of the listed companies in china, there are apparent discrepancies between the listed companies in central region and other regions.Compared with other regions from a national level, what are regional characteristics that have been shown by the listed companies of the central region? What differences are there among the listed companies of the provinces in central region? And what are the main factors that lead to the differences?Faced with these issues, putting the listed companies of the central region as part of China's listed companies, the article analyzes the situation and explores its deep-seated reasons. Finally, some proposals are given.In the first part of the article, we have a literature review of theory on the research of listed companies. It includes the capital market theory and the theory of economic geography. The capital market theory explains the capital market function to regional economic development from economics and the theory of economic geography analyzes the spatial attributes of the capital from the point of geography. These theories are the basis of this paper.The definition of the listed company is given in the second part of the paper. Meanwhile, we introduce the significance that the company go to the stock market and the situation of the development of China's securities market and listed companies, analyze relations between listed companies and regional economic development, point that listed companies can promote the effective allocation of regional resources, stimulate the optimization and upgrading of regional industry, enhance regional industrial advantages and competitive advantages.We have a research on regional characteristics of the listed companies in central china in the third part. We compare with the eastern, the north-eastern and western regions from the distribution of number and size, industry structure, operating conditions and the level of financing. Meanwhile, we give an analysis among provinces in central region.From the scale characteristic of the listed companies in central region, by comparison, we find that it has a less number, smaller equity and lower level of capital securitization about the listed companies in central region, that it is, from the national level, it has demonstrated imbalance.From the industry distribution characteristics of the listed companies in central region, it is only a small proportion, in which mining industry, the petrochemical and plastic industry, metallic and non-metallic industry have relatively larger share, it basically reflects comparative advantage of the central region. But because of the small number of the listed companies in central china, there are a little or no companies in many industries. From the industrial structure, the industrial structure of listed companies have greater deviation from the industrial structure of the regional economy in central region, that is, it has a relatively small proportion of listed companies in the first and tertiary industries.From financing level of the listed companies in central region, as the limits of the number of listed companies, financing capacity of the listed companies in central region is much lower than the eastern region. From refinancing capacity of the listed companies in central region, it is the worst in four regions. It is not only lower than the eastern region but also lower than the western region.About the operation of the listed companies in central region, from earnings per share and rate of return on common stockholders equity, it is generally superior to the western region and the northeast. And it is fairly close to the eastern region, that it is, the profitability of the listed companies in central china is overall well. From the stock ratio of listed companies that were specially treated in the past years, it is the lowest share of the four regions, it is superior to the eastern, north-eastern and western regions.From the scale of the listed companies, the level of financing and operating conditions in the provinces of the central region, due to the differences in regional distribution, it also shows its uneven characteristics in central region. As the central region has not been regard as an economic area for a long time, there are larger internal differences in central region.The listed companies in central region are born of the soil of the central china, so the regional characteristic are greatly relative to the environment of the central china. We analyze the reasons that the regional characteristics are shown by the listed companies in central region. In conclusion, the main reasons that the regional characteristics are formed are the geographic location factors, the level of economic development,historical and cultural factors, Securities institutional factors, and so on. First, because of the geographic location factors, it makes the central region less open, less aware of the capital. Meanwhile, the natural resource endowment decides that the main type of listed companies are mining industry, petrochemical, metal and non-metal manufacturing in central region. Second, the level of economic development is an important factor that influences the listed companies of the central region. The low level of overall economic development impacts on reserve resources, operating skills and refinancing capacity of listed companies. Meanwhile, because of economic structure, listed private companies are less, reducing the vitality of the listed companies of the central china. Third, the historical and cultural factor that impacts on the listed companies of the central region is not also ignored. Although a long history in central region, however, the history and culture of the central region have been stamped deeply with the closed brand by China's feudal system for 5,000 years and it has impacted on the people's values of the central region for a long time. It greatly influences the development of the listed companies in central region. Fourth, it is the market system factors. China's stock exchange is in Shanghai and Shenzhen only. Because of the far distance, its affection is weaker to the central region, this is one of the main reasons that influence the development of the listed companies in central region. In addition, China's stock issuing system constrains the development of the listed companies of the central regionHow to resolve the problem that the listed companies of the central region is disadvantaged in china? This paper presents a five-point proposal. First, we should change concepts, realize the importance of the listing of enterprises, establish the new market culture views of the central region. Secondly, we should build the basis of listed companies and do the preparatory work for the listed enterprise. Third, we should accelerate the speed of the reorganization of assets, promote the industrial structure adjustment of the central region. Fourth, we should vigorously develop securities dealers and intermediary organizations, promote the development of the listed companies in central region. Fifth, we should play competitive industries, raise the position and the level of concern of the listed companies of the central region in China's capital market.