An Empirical Study Of Chinese Stock Market’s Resource Allocation Efficiency

One of the most basic function of the stock market is to optimize the distribution of capital resources. And studying of resource allocation efficiency in stock market is an important part of the stock market efficiency research.In this paper,after analyzing the role of the allocation of resources’ process in the stock market,we research the resource allocation efficiency of Chinese stock market by studying efficiency in the industry and listed companies.In the part of studying industries’ efficiency, we learn Jeffery Wurgler’s efficiency of capital allocation model,and research20sectors’ allocation efficiency with yearly panel data regression and panel data model.The empirical results show that the efficiency of Chines stock market in the inter-industry configuration is inefficient.After researching the industries’ efficiency,we turn to studying listed companies’ efficiency.In this part,we select four industry listed companies that areelectricity,electronics,pharmaceutical and biotech industry,transportation and warehousing industry.Then using data envelopment analysis model (DEA),we investigate operating efficiency, management efficiency.According the results,we find that of Chinese listed companies are generally high and there are little space to grow by enlarge the scale efficiency.But technical efficiency is not very high,and even there is a declining trend,which has become the main cause creat decline of listed companies’ operating efficiency.In the futher,listed companies want to improve their operational efficiency,only improve the efficiency of their management can improve performance.Finally, according to the empirical results, we analyze three main causes that influence the allocation efficiency of stock market.These are the unreasonable stock structure,the weak delisted policy executive strength and inadequate supervision.To address these problems, we make some suggestions.