Research On Financing Efficiency Of Listed Companies In Regional Equity Trading Markets

The regional equity exchange market aims at providing equity,bond transfer,and related financing services for local small,medium,and micro enterprises.It has become an important part of Chinese multi-level capital market system.The past few years of development have witnessed 37 regional equity exchange centers that have greatly activated the new growth of SMEs throughout the country..The regional equity exchange market not only can serve as an effective supplement to the main board market,the GEM,and the New OTC Market but also can fasten the process of reforming the joint-stock system and the governance structure of small,medium,and micro enterprises.Financing is one of the most important functions of the regional equity trading market;and the financing efficiency is the part of the company’s financing capacity,which creates value for the company and directly affects the market’s effectiveness.In this paper,E-board listed companies in the Shanghai Equity Exchange are investigated in terms of financing efficiency and the factors that affect the financing efficiency.This paper first describes the status quo of regional equity trading centers,and then theoretically analyzes the factors that affect the financing efficiency of listed companies.Considering the fact that Shanghai Equity Exchange Center just has been set up for a few years with new companies being listed each year,a method of grouping by year is used to divide the listed companies into four groups and incorporate as many companies as possible into the research scope.First,the financing efficiency of the listed companies is studied based on the three-phase DEA model and the Bootstrap-DEA model.Then,in terms of the previous theoretical analysis and some important assumptions,the panel Tobit model and panel quantile regression model are used to deeply analyze the factors of financing efficiency.Finally,some recommendations were put forward on how to improve the financing efficiency of the listed companies in the regional equity exchange center.The empirical results show that: overall,the technical efficiency and pure technical efficiency of the listed companies in the Shanghai Equity Exchange Trading Center are lower than expected,and the unsatisfying pure technical efficiency has seriously restricted the improvement of the corporate financing efficiency.Shanghai companies have exceeded their financing efficiency,operating level and resource allocation capabilities.The effect of the external environment on the returns to scale of the enterprises is obvious.When the external environment gets better,the company’s scale return is increasing;conversely,when the external environment goes down,the company’s scale return is declining;compared to the past,the company’s financing efficiency has risen or declined,but it can be assumed that the average efficiency value of companies has remained relatively stable;technical efficiency is significantly affected by the size of the company;total asset turnover and total income have a significant impact on financing efficiency and are positively correlated,and the effect of the net asset income rate is uncertain,which may be related to industry factors.The other variables are obviously related and reasonable,but not statistically significant.The above conclusions show that: Shanghai Equity Exchange also needs to make improvements in the listed thresholds,information disclosure mechanisms,etc.,and take into account the market coverage in order to fully realize its financing functions.