Stock Market Efficiency Of Capital Allocation

In this paper, I make research follow this idea: theoretical analysis--practice certification -- explanation of the status quo by conclusions. Through the analysis on theory and empirical about capital allocation efficiency of China stock market, I hope to find the reasons why China stock market don't coordinate with China economic growth, and make a modest contribution to the reform of China's stock market.From the above point of view, My paper is divided into five chapters : In the first chapter I introduce the background and aim of this study; Chapter II is the literature; In Chapter III , I make theoretical analysis on the capital formation mechanism in China stock market and factors affecting the stock market capital allocation efficiency ; Chapter IV, I test the efficiency of Chinese stock market capital allocation; Chapter V: advice.Chapter I, I introduce the main background and study purposes of this research. Since Fama (1967) effective market hypothesis, Research on the efficiency of stock market has focused on testing the validity of the information. If securities prices reflect all information, market competition makes prices change from a balanced to another level, we can consider that the market is efficient. Substantial empirical studies are based on this theory. It test the effectiveness of market information, But does not explain how the stock market use information to guide the allocation of funds, and can't describe the interaction between the stock market and economic entities. This is the purpose of this paper.Chapter II, I introduced the existing theory and research methods on stock market efficiency. I reviewed the research...