| Since the reform and opening up in 1978,China's modernized economic system has been continuously improved,the capital market economy has been developing vigorously,and the policy of opening to the outside world has made brilliant achievements.Expanding the opening up of the capital market is an important measure to promote high-quality economic development,and it is also the unswerving development direction of the capital market.Expanding of the capital market opening is not only conducive to building a global economic community of shared future,but also can introduce mature market rules,promote the transformation of the capital market to mainstream institutional value investment,and transform irrational market behavior into price discovery under fair competition,so as to enhance the capacity of the capital market to serve the real economy.The capital market opening has been accelerated in deepening the reform of the financial system.The Shanghai-Hong Kong Stock Connect was officially implemented in November 2014,marking an important step in the two-way opening of the capital market in China's A-share market.The Shenzhen-Hong Kong Stock Connect was launched in December 2016 to further open up the capital market.In June 2018,A-shares were officially included in MSCI Emerging Markets Index,promoting the further standardization,marketization and internationalization of China's capital market,and further integrating China's capital market into the international capital market system.The inclusion of A-shares in MSCI index is the inevitable result of the implementation of the capital market opening policy,which marks the further opening up of the capital market and has become the focus of attention of domestic and foreign investors and the public.The financial reform and opening up under the new situation are an important measure to promote the healthy development of the capital market.Continuously improve the quality of listed companies,improve the trading system,optimize transaction supervision;Accelerating the opening up of the capital market and promoting the legal construction of the capital market have become new requirements of financial reform and opening up.The core of financial opening is to meet the international standards,break the “protectionism” in the financial field,and realize mutual assistance and mutual benefit in the global financial field.The opening up of the financial market aims at the allocation of funds and the enhancement of cross-border capital liquidity.The two are interconnected and mutually reinforcing,so as to jointly improve financial reform and development.With market development,China's a-share market on QFII and RQFII access to relax,deep port and Shanghai port,land port,the implementation of the mechanism of connectivity,is the financial opening and financial market opening strategy,step by step significantly promote a-share international influence.China's capital market starts late and there are big irrational factors in the market.First of all,in the process of continuous development of China's capital market,relevant laws and regulations are becoming more and more perfect,and the degree of information asymmetry is relatively high,so it is a typical emerging capital market.Second,China's capital market is based on individual investors as the main group,compared with mature institutional investors,the relative lack of professional knowledge,can appear in a herd mentality driven “flock effect”,it is hard to reason and accurately extract the effective information to make a judgment,there is reason to forecast our country capital market stock price will be more serious.Managers take into account that if the stock price is undervalued by the market,the undervalued stock will bring higher costs and less future earnings to the enterprise,thus affecting the investment decision of the enterprise,and vice versa.At this point,if managers have the ability to accurately identify the market reaction,their investment decisions will take the long-term value of shareholders into consideration and make rational decisions.Therefore,it is of great academic value and practical significance to study the economic consequences of A shares being included in MSCI index.First of all,the short-term index effect and long-term market reaction of A shares included in MSCI emerging markets index are studied.The research results show that,from the perspective of short-term index effect,the underlying stocks will achieve cumulative excess returns in 3,5 and 7 window periods before and after the announcement of A-shares' inclusion in MSCI index on May 15,2018,reflecting A positive signal to the market and presenting an obvious index effect.Further investigation shows that,for the underlying stocks,institutional investors' shareholding can positively affect the excess return rate of the stock in a short period of time and convey the information quality of the underlying stocks.Analysts focus on the cumulative excess returns,although positive significant decline,but a persistent state,supporting the investor awareness hypothesis.Through the long-term market reaction,A shares after formally incorporated into the MSCI index,the underlying shares of stock price synchronicity increased significantly,reflects the Chinese stock market in the event of A noise,under the condition of individual investors under the informational disadvantage appear convergence phenomenon,reflect the stock market information efficiency of stock price synchronicity can be positive,heterogeneity analysis,non-stateowned enterprises showed A stronger stock price synchronicity;It has no obvious influence on stock liquidity due to the quality of information connection and investment restrictions of foreign investors,but only significantly improves stock liquidity and reduces transaction costs in the group of State-Owned enterprises.After the inclusion of A shares in the MSCI index,the investor's attention has been significantly improved,making the underlying stocks included in the MSCI index into the investment hot sectors.Inclusion of A-shares in MSCI emerging Market Index can introduce foreign institutional investors and analysts,successfully opening A two-way channel of international platform.It conforms to the conference spirit of “Promoting domestic and international double cycles and expanding investment space” proposed at the fifth Plenary Session of the 19 th CPC Central Committee,and helps to standardize China's capital market system and trading rules.Secondly,after the inclusion of A-shares in MSCI index,the underlying stock companies get the attention of overseas analysts and institutional investors and play the role of information intermediary.This paper takes the information environment as the research object to study the relationship between the internationalization of the capital market and the information environment of enterprises.The results show that the inclusion of A-shares in MSCI index can significantly improve the information environment of enterprises.In the heterogeneity analysis,the improvement of the information environment mainly occurs in state-owned enterprises and non-big four audit enterprises.In the further path analysis,based on the consideration of information cost,enterprises with high degree of earnings management and low management shareholding ratio are more able to restrain their moral hazard after A shares are included in MSCI index,so as to improve the quality of accounting information.From the perspective of information transmission,enterprises with a high proportion of institutional investors and a low degree of equity checks and balances are more likely to form a supervision mechanism and check and balance system,which can enable investors to obtain a higher content of corporate information.In the test of value enhancement effect,the way to improve the company's information environment through the attention of analysts and research reports can enhance the company's value,which proves that the investor's cognition hypothesis is also applicable in the process of internationalization of China's capital market.In the development of the capital market,analysts and institutional investors are not only important participants,but also play a vital role.Therefore,they should develop in a diversified way and constantly improve the operating environment of the institutional investor market by combining the trends of the capital market.Thirdly,most enterprises in China face the problem of “financing difficulty” in their financing activities.This paper takes enterprise financing constraint as the research object and studies the relationship between a-share inclusion in MSCI index and enterprise financing constraint.Research results show that the A shares in MSCI index significantly reduced the enterprise financing constraints,heterogeneity in the analysis,the effect is mainly embodied in the non-state-owned enterprises and the big four auditing of listed companies,the path analysis,based on the signal transmission theory examines the company information intermediary role,A shares in MSCI index,analysts and institutional investors holding up huge can improve the financing environment;Based on the information asymmetry theory,this paper studies the influence of corporate governance structure and finds that after A shares are included in MSCI index,the financing cost of companies with high management shareholding or high degree of equity checks and balances is significantly reduced.In the mechanism test,it is found that the inclusion of A-shares in MSCI index improves the attention of analysts so as to ease the financing constraints of companies,in which the information intermediary role plays A dominant role.The research results show that the inclusion of A-shares in MSCI index can reduce the financing constraints of companies,improve the ability of financial service entities,lay the foundation for the development goals of the 14 th five-year Plan of “reform of market-oriented allocation of factors,improve the fair competition system,and form A higher level of open economy”,and improve the ability of financial service entities.Finally,from the perspective of behavioral finance,this paper studies the relationship between the inclusion of A-shares in MSCI index and the investment efficiency of enterprises,taking the investment behavior of enterprises as the research object.The results show that the inclusion of A-shares in MSCI index significantly reduces the investment efficiency of enterprises.Further analysis shows that inefficient investment mainly occurs in over-invested enterprises;In the analysis of heterogeneity,the investment efficiency of non-state-owned enterprises and enterprises audited by the big four decreased significantly.In the further path analysis,the internal influencing factors of decision-making power were investigated,and it was found that companies with low managerial ownership and high earnings management were more likely to overinvest after A shares were included in MSCI index,which led to the decline of investment efficiency.Based on the external influencing factors of decision-making control,it is found that enterprises with high analyst attention and low equity checks and balances will increase investment in order to cater to the market investor sentiment after A shares are included in MSCI index,and the influencing factors of decision-making right and control right will become the incentive to reduce the investment efficiency of enterprises.In the test of mediating effect,this paper finds that inclusion of A-shares in MSCI index can alleviate the financing constraints of companies and thus reduce the investment efficiency of companies.Compared with equity financing channels,rational catering channels are more likely to be dominant.Therefore,enterprises should consciously regulate and restrain their investment behaviors,managers should pay attention to the risk level of investment projects and whether they will bring considerable profits to enterprises,and enterprises should focus on the overall value and long-term development of enterprises in their investment decisions. |
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