The Study On The Determinants Of The Geographical Distribution Of Chain’s Listed Company: An Analysis Based On Inter-Provincial Panel Date

In China, the difference on the geographical distribution of listed companies indifferent areas has been greater and more obvious. It can show as follows: most listedcompanies mainly distribute in several eastern coastal provinces, but rarely in theMidwest China. Especially in underdeveloped areas of western China, less than tenlisted companies has been located. The great regional difference has emerged. Thispaper aims to find out the underlying reasons behind the differences. Therefore, theintroduction of the theoretical framework on new economic geography is made toanalyze the impact factors on the geographical distribution of listed companies. Thenthe practical test on these factors will be made and based on the test conclusions,some relevant policy proposals can be tabled.In the process of theoretical analysis, this paper gives a theoretical review of thenew economic geography theory and made a statement about the relevant researchesof listed companies’ geographical distribution. After that, it made descriptive analysisabout the fact of listed companies’ geographical distribution feature and compared itby different areas. At last, it applied the new economic geography theory frame toanalyze the possible reasons which influenced the geographical distribution of listedcompanies and elaborated its’ mode of action.In the process of empirical analysis, according to the influence factors of theoryanalysis, this paper picked out the appropriate proxy variables, built an estimationmodel of influence factors, then it took panel data from29provinces (cities, districts),which is between1995and2011，made use of Hausman test to confirmed the settingform of the model. After that it carried on the unit root test of regression modelresults’ residual sequence. Through significant results, we verified the rationality ofregression equation, the variable and explanatory variable had stable equilibriumrelationship.In order to make representative indicators, this paper took different researchmethod to choose some individual indicators. And the result showed that theseindicators could well explain the influence of listed companies’ geographicaldistribution. From the empirical results, we can see that Hausman test can support thestochastic effect model, except for the policy variable-opening level indicator whichwas not conspicuous. Other explanatory variables all passed the significance test. Theinfluence factors of economic activities’ agglomeration which were emphasized bynew economic geography had significant influence on the geography distribution oflisted companies. It well explained the geography distribution differentiation of listedcompanies.According to the result of empirical analysis, we found that: geography locationhas great influence on the geography distribution of listed companies. It is theimportant reason which leads to the geography distribution initial differences; financeexternality, industrial relationship, infrastructure conditions, human capital andtechnology spillover are important new economic geography factors, they speed upthe area agglomeration effect through self-reinforcement mechanism, widen thedifferentiations between different areas; the government’s reducing its participation tothe economic activity can be good to the development of enterprises and operation ofthe market.In the end, the paper put forward relevant policy suggestion according to the resultof empirical test. The government can remit differences between areas by promotinginterregional trade, strengthening infrastructure construction and human capitalinvestment to reduce the development gap between companies in different areas,promote harmonious development of regional economy.