Study On The Correlation Between Capital Allocation Efficiency And Financial Development In Guangdong Province

In accordance with the development of modern financial theory, the efficiency of capital allocation is a key measure of financial performance indicators. To the stock market and financial flows reflect the financial system as the level of development indicators only apply to market a higher degree of financial markets. For developing countries, the financial evaluation of the level of development indicators should be the preferred efficiency of capital allocation.Guangdong Province is China's top financial development and capital accumulation-rich region. Therefore, this reference to the theory of Jeffrey Wurgler, a panel data model of Guangdong Province's capital allocation efficiency, the correlation between capital allocation efficiency and financial development in Guangdong province and other issues of empirical research. In order to research the development level of finance and the efficiency of capital allocation from the regional dimension of China's economically developed areas.This study shows that the overall the efficiency of capital allocation of Guangdong Province is not high, financial development and efficient of capital allocation less relevant. And financial development of Guangdong has failed to effectively promote the efficiency of the capital allocation. Mainly due to these reasons: financial development mainly reflected on volume growth rather than to efficiency improving, incomplete financial markets function, the imbalance of capital market structure. Therefore, this paper proposes policy recommendations through empirical findings to improve the development situation of finance and the efficiency of capital allocation.