Font Size: a A A

The Development Of Financial Efficiency And Corporate Bond Markets

Posted on:2005-08-06Degree:MasterType:Thesis
Country:ChinaCandidate:Z W PanFull Text:PDF
Abstract/Summary:PDF Full Text Request
We admit the fact that financial development contribute to the economic increasing and research in this field continues. Generally speaking, the increasing of the economy demands the continuous deepening of the financial development. The basic reason is that the real economy is an economic system communicated by the currency. An economic unit can run normally and expand the speculation only obtaining enough capital, while the financial instrument and the well running of the financial market promote the capital continuously flow from the supply side to the demand side and make the currency become the good connection of the economic management.Whether the contribution of the financial market to real economy reaches "pareto efficiency" is the problem of the efficiency. So the development of the financial market produce a symbolic economy comparing to real economic increasing. Less superiority has two meaning: financial prevention and financial bubble. The most efficient financial market means reaching the financial efficiency. The structure of the financial market will affect financial efficiency .We can judge financial efficiency form two sides:,One is the expression to the national economic development and financial market, classified as macro financial efficiency and financial market efficiency. And this is emphasized the ability of observation. The other is from the theory of the function for financial development to national economy and financial market, and mainly acted in the allocation of the resources. The reasonable allocation means the high financial efficiency. If realizing the outer financial efficiency, the flowing of the capital from the supply side to the demand side is rational and efficient and at the same time the mechanism of the price finding is realized , which is indispensable in guaranteeing the applying of the capital and the direction of the capital flowing. The price of the capital is in fact theinterest rate.Chinese financial market efficiency Is comparatively low from the macro or the financial market, if it is desired to be promoted, expanding the investing channels for the people, improving the applying efficiency of capital , realizing the harmony of the capital market are the three necessary methods .Financial market can not only show the movement of the capital supply and demand through the fluctuation of the interest rate ,but also direct the investment through the price of the capital. Thus, balance the risk and the profit. If the company can manage the capital reasonably, the social resources could be correctly put under the currency movement. Otherwise, if financial market is highly effective, the tunnel from the supply of the capital to the demand would be fluent and the financial development will promote the economic development, thus the continuous increase of the national development is realized. An interest rate matched the corresponding the investing risk is formed with the aide of the enterprise bond market, thus helping the enterprise to well evaluate the project investment, increasing the capital managing effect. On the other hand, the development of the enterprise development may also decrease the detaining of the capital in bank system , and guarantee the fluent movement of the capital.As to the character of the low efficiency of the Chinese financial efficiency, the enterprises bond market should be developed a lot . There are four factors according to the lag of the enterprises bonds market :the government factor, the media factor, the investor factor, the supply factor.According to the limitation factor , we can do from seven aspects: 1 carry out an efficient administrative reform. 2 exert an efficient institutional establishment .3 construct a good matching measure. 4 build a scientific rank system.
Keywords/Search Tags:Financial efficiency, Efficiency of resources allocation, Mechanism of finding price, Market of enterprices bond
PDF Full Text Request
Related items