The Study Of The Micro-mechanism Between Shares Structure And Efficiency Of The Equity Market

With the gradual deepening of economic reform of Chinese capital market reform has entered a critical stage. The fundamental contradiction of the system that has plagued our capital market for years has been fully exposed for all. This is that most of the listed stocks are artificially split into two parts in Chinese stock markets. An overwhelming majority of the community is the people as the main holders and the other is the the institutions holders. The phenomenon has brought great conflict not only to the construction of corporate governance structure, also caused the securities market efficiency. This paper follows the trend of this academic designs and explains a group of statistical variables, and on the basis, by commissioning model which we call it SS-ME model, based on the modern research methods such as the game theory and the information theory. following the model, we can conclude that shares structure and the efficiency of the equity market are both due to internal principals and agents of the corporations, and other micro-mains, modes of the transmission of information and the game among them, so they are the natural disposition and dynamics. And then, this paper uses this model to illustrate the reform of the split of shares in China, the results of the study indicate that, the split of shares is seen as a arrangement, it is in a way contrary to the laws of the efficiency of the Chinese equity market to be low, so the reform of the split of shares is essential. At the same time, this paper commisse the movement trails of equity market which has been reformed from the split of shares based on this model. That is to say, the shares structure is from the binary structure to one structure between principals and agents, and the efficiency of the equity market is being improved.