Resource Allocation Efficiency Of Chinese Stock Market

Resource allocation is an important function of stock market, and resource allocation efficiency is an important part of stock market efficiency. This dissertation makes a study of the resource allocation efficiency of the stock market in China.After making a definition of stock market resource allocation efficiency, this paper makes a summary of previous relative studies, including people's understanding about resource allocation efficiency of stock market, the mechanism and process of resource allocation in stock market.Then this paper turns to empirical study of resource allocation efficiency in Chinese stock market. There are two parts in this empirical study. Firstly, using linear regression method this paper estimates the resource allocation coefficient in terms of resource allocation among different industries. The result shows that the Chinese stock market is inefficient in resource allocation, and the performance of resource allocation has a connection with the performance of secondary market. Then the empirical study turns to the analysis of listed companies. Using Data Envelopment Analysis (DEA) method, this part examines operation efficiency, management efficiency and scale efficiency of the listed companies in electricity&gas industry, real estate industry, medicine manufacture industry and information industry. The result shows that listed company's' management efficiency is dropping, and operation inefficiency is mainly because of the management inefficiency. From this point of view, the resource allocation efficiency of Chinese stock market doesn't make any improvement in recent years.This dissertation also analyzes the influence factor of the market allocation efficiency, and makes the conclusion that the system defection is the root of the allocation inefficiency in Chinese stock market.The last chapter gives a summary of the dissertation and shows the direction in future research, that is the study of the transmission mechanism and process from information efficiency to resource allocation efficiency.