Comparison Research On Equity Financing Efficiency Of The Listed Companies Between China And UK

The importance of capital for a listed company is self-evident,the source of capital are obtained through financing.In the financing mode,equity financing is an important way,and then the efficiency of equity financing of listed companies is of great concern.The current stock market which plays an important role in Chinese economic system with providing financing platform for Chinese listed companies,diversifying risk,optimizing the allocation of resources,has become an important part of the development of listed companies in China.However,with the continuous development of the economy and the active participation of investors,the stock market problems emerge continuously,so the efficiency of equity financing of listed companies has become the focus of research.Britain is the world's first country to complete the industrial revolution,and the issuance of shares of listed companies also has a long history,so the stock market is very mature.what's more,the British stock market is the world's most international stock market,which provides reference experience to the development of listed companies in China.Therefore,this paper studies the equity financing efficiency of listed companies in China and UK,and draws a conclusion that the effective ratio of equity financing efficiency of Chinese listed companies is lower than the effective proportion of the UK.In the same time,the paper finds that the effective value with range of 0.7-1 of the listed companies in China is significantly lower than that of the United Kingdom,and finally making a few suggestions in order to improve the efficiency of equity financing of listed companies in China.This paper is divided into six parts,all of which are carried out by the equity financing efficiency of Chinese and UK listed companies.The first part is the introduction,which mainly introduces the research background and significance,and explains the research ideas according to the research of scholars both at home and abroad.The second part reviews the theory of equity financing efficiency,including the definition of equity financing efficiency,the influencing factors,and the analysis and research methods.The third part,firstly,introduces the development of China and the UK stock market withanalyzing and comparing,and then,this paper analyzes the ownership concentration and asset-liability ratio of listed companies in China and the UK.The fourth part is mainly empirical research on the equity financing efficiency of listed companies in China and the UK.First,we introduce the empirical method,data envelopment analysis(DEA)of research efficiency,and then,we introduce the index data source of the sample,selection and processing,finally,we empirically analyses the equity financing efficiency of Chinese and UK listed companies with DEA method.It is concluded that the effective proportion of Chinese listed companies is smaller than that of UK listed companies and the efficiency value with the range of 0.7-1 of listed companies in China was significantly lower than that of UK,with the results of the robustness of the test were tested;the fifth part,according to the British listed companies and the stock market development experience,as well as the comparative study results of equity financing efficiency,proposing relevant recommendations in order to improve the efficiency of equity financing of listed companies;the last part is the conclusions and prospects for the paper.