The Influence Of Regional Characteristics On The Violations Of Listed Compianies

China's stock market capital establishes in 1990 and then the market experienced a process of continuous development The number of A-share listed companies grew from 8 listed companies in 1990 to 3,552 by the end of 2017.The total size of the A stock market has reached 56.62 trillion yuan and it is a new record high.At the same time,however,the illegal behaviors of listed companies are also emerging.The infamous cases of infringement of listed companies such as Lam Tin,Yin Guang Xia,Wan Fu Sheng Ke and Xin Tai Electric all caused serious damage to China's capital market,and made the market participants of all parties pay a heavy price.The information asymmetry theory holds that in social politics and economic activities,moral hazard and adverse selection arise when the parties to a transaction have information asymmetry.In the capital market,the existence of information asymmetry makes the listed company have the opportunity to profit from violations,thereby harming the interests of investors and leading to inefficient allocation of market resources.Therefore,identifying the characteristics and reasons that affect the listed company's illegal behavior has important practical significance for improving the efficiency of market resource allocation.This paper takes a non-GEM A-share listed company from 1993 to 2015 as a research sample and uses a logit regression model to study the influence of regional characteristics on listed company's non-compliance behavior.On the basis of controlling internal factors at the company level that may impact on the violations of listed companies,this article studies the relationship between the level of economic development,degree of marketization,media influence and efficiency of the rule of law and the violations of listed companies.The results of the research show that the above regional characteristics all show a significant negative correlation with the listed company's violations.Further studies have found that as time goes on,the relation between regional characteristics and listed companies' violations is weakening.Below is the article's contribution: Firstly,it is a more comprehensive demonstration of the impact of regional characteristic such as economy system and rule of law on the violations of listed companies and it also distinguishes the influence of geographical factors on companies of different sizes.Based on previous literature,this article innovatively adopts case closing rates to measure the rule of law environment,examines the impact of the efficiency of the rule of law on listed company's violations,supplements the relevant theory of institutional economics with empirical evidence,and provids a reference for investors and regulators.Secondly,further research proves that with the split share reform as a time node,the impact of economic development level and marketization level on the listed company's illegal behavior shows a weakening trend.