Empirical Analysis Of Influencing Factors Of Market Liquidity Of New Three Board

The New Three Board market,from 2013 to 2016,not only has achieved rapid development,but also has exposed a lot of problems,one of the more prominent problem is that the New Three Board market liquidity is lack of liquidity.The problem which curbed the development of the New Three Board market attracts high attention of scholars and market participants.Therefore,it is of great significance to explore the influencing factors of the liquidity of the New Three Board market and its influence mechanism to reduce the unfavorable factors that affect the liquidity.Firstly,the paper analyzes the present liquidity situation of the New Three Board market.The paper compares The New Three Board market with the Shanghai and Shenzhen market(Motherboard,Small board,Growth Enterprise Market)on the number of enterprises,the average market value,average daily volume,average daily turnover,average daily turnover rate.There are significant differences between the New Three Board market's liquidity and the Shanghai or Shenzhen market's liquidity.The paper analyzes the correlation between the liquidity index of the New Three Board and the market index of Shanghai and Shenzhen,and finds that they have a strong positive correlation.In addition,the New Three Board market liquidity index lags behind the Shanghai and Shenzhen market index about one month.Secondly,this paper which is based on the theory of market microstructure analyzes the influencing factors of the liquidity of the New Three Board from the four aspects:trading system,information disclosure,transfer mechanism and investor threshold.Because of the market maker's license is scarcity,they are in a monopoly position,which led to their profit model deviation.The market maker can't give full use of pricing,protecting the investor and maintaining market stability.The New Three Board market information disclosure is imperfect.The supervision of the New Three Board market information disclosure and the punishment are insufficient.The New Three Board market is lack of orderly transfer mechanism.The threshold of investors is so high that there are few investors in the market.These factors mentioned earlier are reducing the liquidity of the New Three Board market.Then,the paper uses the multiple linear stepwise regression model to analyze the influencing factors of the liquidity of the New Three Board.720 samples of the paper are randomly selected from listed companies on the New Three Board market on December 31,2016.The Amivest liquidity ratio was calculated on the daily trading data in 2016 and this ratio was used as a measure of liquidity.The paper choses ten independent variables on five aspects to make a multiple linear stepwise regression analysis.The empirical conclusion is that the main factor of the liquidity of New Three Board market are the interval turnover,circulating capital,total assets,the average transaction price,the top ten shareholders shareholding ratio,sales of gross margin,and the influence is gradually decline in the level.Finally,the paper draws conclusions and makes recommendations.In the theoretical analysis,the four aspects of the influencing factors in the trading system,information disclosure,transfer mechanism and investor threshold contain the liquidity of the New Three Board market.In the empirical analysis,the interval turnover,circulating capital,total assets,average transaction price,top ten shareholders shareholding ratio and sales of gross margin have significant impact on the liquidity of the New Three Board.At the end of the paper,reference is made to market participants,including regulators,listed companies and investors.