Research On Financial Development And Corporate Investment Efficiency In Ethnic Minority Areas

The ethnic minority areas in China relatively have poor natural environment. Andbecause of the political and cultural impacts in these regions, there turns to be a hugegap between the national regions and the eastern and central China in economic andfinancial development. Therefore, to improve the environment of the financialdevelopment in national regions and to establish and perfect the financial supportsystem is of prime importance in the process of economic development in theseregions. At the same time, as an important theme of economic life, there are manyproblems need to be addressed in the development of ethnic areas: does the level offinancial development influence the investment efficiency of listed companies innational regions? And what is its role mechanism?This paper analyses the financial development in ethnic areas by studying thecredit scale, financial ecological environment and the application of capital markets.And by a comparison of related indexes between the national regions and theeast-central region, this paper draws a conclusion that the financial development innational regions lags behind other provinces and regions. Meanwhile, by an analysisof the investment in national regions and the investment efficiency of listedcompanies, this paper draws a conclusion that the investment efficiency of listedcompanies in national regions is very low and the lack of investment and investmentexcesses is a common phenomenon.On the basis of relevant researches at home and abroad, this paper draws aconclusion, by establishing models of investment efficiency of listed companies anddescriptive statistics, correlation and regression analysis, that there exists a negativecorrelation between the financial development in national regions and investmentefficiency of listed companies, the financial development can restrain the excessiveinvestment and improve inadequate investment. Therefore, to improve the investmentefficiency of listed companies and the economic development is to improve thedevelopment of finance in national regions. So a financial system that suits thedevelopment in national regions should be established to support its economicdevelopment. This paper in the end puts forward some suggestions of financialdevelopment in national regions. And this paper consists of three parts and six chapters in total.The first part consists of Chapter One and Chapter Two with the significance,research ideas and frameworks of the studies and it offers a review of the research offinancial development and investment efficiency by domestic and foreign scholar.The second part consists of Chapter Three and Chapter Four and it mainlyintroduces and describes the factors that affect financial development, and analyzesthe mechanism of action of the impact. Through comparing the ethnic regionalfinancial development status and East Central Region representative regions, it comesto the conclusion of backward financial development of ethnic minority areas. At thesame time, when drawing on the investment efficiency evaluation model of other topscholars which is connected with the data of the ethnic minority areas listedcompanies, it put forward to the conclusion of the status of them.The third part consists of Chapter Five and Chapter Six and it proves the truth ofthe hypothesis by replacing the use of the indicators of the level of financialdevelopment and establishing assumptions first by the data of listed companies, andthen combines the relevant data. Upon which, it draws a relationship between theethnic regional financial development and the efficiency of investment in listedcompanies. Finally, on the basis of the previous, it put forward to the relevantrecommendations of the financial development in ethnic minority areas.