Research On Financing Efficiency Of Regional Equity Market

Regional equity exchange market is to provide equity transferring and refinancing service to the business in specified areas. At the end of 2014, thirty exchange markets had been established across the country, more than 2,400 enterprises had been added to the list of the market and another 20,000 more enterprises had shown their willingness to be listed. As an important part of Chinese market economic system, not only regional equity market benefits the small and medium enterprises, but also optimizes the allocation of financial resources, promote the upgrading of the industrial structure and so on. Because of the great importance the exchanges have in promoting the situations of Small and micro business, it is meaningful to study the financing efficiency issues of the regional equity exchange. In our country, however, the research of the exchanges is relatively limited, and the existing articles mostly focusing on the policies, trading systems and regulations. Few of which have been turned their attention to the financing efficiency of the market. A truly new respective was proposed to solve the issues by scrutinizing the operating mechanism of the equity exchange market from the aspects of the qualitative analysis.The domestic and foreign researches on the issues have been summarized in the first part. Then, the development course and the present situation of regional equity market are listed including briefly summarizes. After which, the operating mechanism of the financing efficiency on the equity exchange market is tested. A theoretical and an quantitative model on the efficiency of the financing functions are established in order to test the efficiency of the Tianjin equity exchange and the issue which having influence on the realization of the financing functions.Innovation on method and measurement had been made in the essay, a combination of qualitative and quantitative analyzing system was proposed. Then, an incomplete information game mechanism was tested to uncover the operating system of the equity exchange market and reveal the mechanism that exchange reducing the trading cost and regulating the activities of the listed company. While at the same time, the appliance of DEA-Tobit model in the research for financing efficiency of equity exchange market for the first time, those measurements exhibited the factors contributing most to the efficiency of the functions of the Tianjin equity exchange.Through the case study of Tianjin equity exchange, the factors contributes the promoting of the financing functions on regional equity exchange had been explored, including the company’s management status, capital structure, profitability and registration area. Then, the potential and the industry factors are the less important to the equity exchange. In addition, the conclusion reveals that not only is the efficiency of the financing functions of Tianjin equity market ultimately low, but also the liquidity of the market is limited. Due to the limited energy and time, the conclusions of this study may not be excellent, however, the biggest contribution of the paper is to provide a truly new respect on the issues of the financing functions of regional equity exchange.