| Each year, World Bank collects and evaluates round 300 indicators for approximately 200 countries, encompassing areas such as health,infrastructure, gender, the financial sector, the private sector, etc. The private sector is the most widely cited, since it is overlooked easily but has wide influence of investment decisions, and the Ease of Doing Business Index is one of the representative indicators of the private sector.Ease of Doing Business Index is a ranking of business friendliness which was first proposed by the World Bank and has been comprehensively evaluated by a number of indicators. Because of its comprehensive,scalability and extensiveness, Ease of Doing Business Index is considered as an important indicator of investment decisions.Market Effectiveness Hypothesis theory provides a premise for the market mechanism, which is in a free and non-constraint trade environment, the legal sound, business information under the adequate supervision and fully disclosed and transparent. Therefore, all valuable information has been reflected in the market which mean the current market and investment environment has been fully and truly reflect by data and their value. Undoubtedly,this is a questionable assumption,because the market never has full freedom of trade, information is incompletely transparent, the law cannot fully protect investors and the Government is impossible to monitor all business information. The Efficient Market Hypothesis is an ideal state, but the problem it evades is worth all the investors considering. Therefore, legal protection,information regulation, trading freedom and information disclosure are indicators that all investors should be focused on when they invest.In the indicator pool of World Bank, there are corresponding representative indicators for legal protection, information regulation,trading freedom and information disclosure in different countries.Through systematic screening and analysis, Business extent of disclosure index, Depth of credit information index, Strength of legal rights index and Merchandise trade (% of GDP) can be regarded as the ideal representatives to evaluate and discuss the investment environment. The impact of Business extent of disclosure index, Depth of credit information index, Strength of legal rights index and Merchandise trade (%of GDP) on Ease of Doing Business Index will be analyzed further.China set up Asian Infrastructure Investment Bank in 2014, in just two years, which already had invested a number of infrastructure projects,triggering the attention of the whole world. Compared with World Bank's poverty alleviation aim, as a regional commercial investment bank, AIIB has the requirements of profit. Because infrastructure investment has the long construction period and return turnover, AIIB's investment decision-making should be more cautious than World Bank and other predecessors. In the past, scholarly research often considered financial risk, return on investment and market forecast. Scholars in the investment decision-making usually focus on two main dimensions which are risk and return, less of them pay attention to business risk and business convenience, and whether mention social risk and other dimensions or not depends on the scope of the study.Based on the Market Effectiveness Hypothesis theory, this paper uses direct and indirect data analysis and theoretical analysis to construct the regression analysis model. This paper will establish a new research ideas which focus on Ease of Doing Business Index. A wider understanding and analysis of the impact of the investment environment and market efficiency indicators, namely, Business extent of disclosure index, Depth of credit information index, Strength of legal rights indexand Merchandise trade (% of GDP) on Ease of Doing Business Index will be pointed out. And the following conclusions can be drawn :1) The reducing of Ease of Doing Business Index will enhance the investment attractiveness; (2) Depth of credit information index has a significant negative correlation with Ease of Doing Business Index; (3)Business extent of disclosure index has a significant negative correlation with Ease of Doing Business Index; (4) Strength of legal rights index has a significant negative correlation with Ease of Doing Business Index; (5)There was no significant correlation between commercial trade / GDP and Ease of Doing Business Index.Based on the above conclusions, two proposals can be made: Firstly,according to Ease of Doing Business Index and relevant factors,developing Asian countries gain a better understanding of their investment environment. It is also a wise way to improve their investment attractiveness by adjusting factors above. Secondly, AIIB can make more accurate investment decisions through a more extensive understanding and analysis of Ease of Doing Business Index with related factors. |
PDF Full Text Request