The Evaluation of Financing Efficiency of China's Stock Market

Financing is the main way for listed companies to obtain funds in China, and it is the "reservoir" which can guarantee enterprises to operate continuously. Financing efficiency can be used to measure the efficiency in using enterprises' own funds, and it is one of the main indicators which are concerned by the stakeholders of listed companies. This paper mainly researches on the impact of equity financing on the financing efficiency of listed companies as a whole and selects 300 listed companies in the Shanghai and Shenzhen Stock Exchange as decision-making units. Then this paper analyzes the financial data of sample companies in 2008-2014. Finally, it can be concluded that the financing efficiency of listed companies in China is generally low, and the total factor productivity in the stock market continued to decline between 2003 and 2005 and then rose rapidly.