Research Of Listed Companies In Shanxi Province To Promote Regional Economic Development

Since the late 1970s, the implementation of reform and opening up policy, China became to market economy from the planned economy system gradually, with the development of joint-stock economy, China’s capital market will also begin to sprout. After decades of development and reform, our country’s capital market became more and more powerful. Only dozens of listed companies in the initial to now there has more than 2000 listed companies and market capitalization to now nearly 300 trillion yuan from 1 trillion yuan. China’s capital markets have became to the most indispensable part of Chinese economy. The listed companies as the main body of the capital market has a natural advantage in raising funds, resource allocation, management, with the development of capital markets. The development of the listed companies now play an important role in promoting regional economic.Shanxi Province is the one of Chinese largest province of energy, in the central region of China. In 2011 the GDP has reach 1 trillion for the first time. The national economic aggregate ranked no.22. in China. And the capital market development in Shanxi Province became earlier, from Shanxi Fenjiu listed on the Shanghai stock exchange in 1994, has nearly 20 years, but by the end of 2011 in Shanxi Province there is only 34 companies listed, There has a big gap between Shanxi Province and other provinces in the central of China. The capital market in small, the development is slow and the industrial distribution is seriously irrational.This is the current situation of the listed companies in Shanxi Province. Did the listed companies in Shanxi Province do some help in the regional economic development, and how much is this effect. This article will use the combination of theory and empirical methods, discuss the contributions of listed company for the regional economic development in Shanxi Province clearly.This paper firstly summarized the research achievements of stock market’s and listed companies’ contribution in the region economy development, making a stage for the theoretical foundation of the article. Secondly make a system description of the current situation of the economic development and the listed companies in Shanxi Province, and makes comparison with other provinces. And focused on the advantages and the disadvantages of Shanxi Province in the economic development. Then discussed the mechanism of action of listed company influences the regional economic development from the perspective of theoretical analysis. Then from an empirical perspective, this essay conducts ADF test, Granger causality test and co-integration test with the GDP data about the development scale and profitability of listed companies in Shanxi province, and it demonstrates that the development of listed companies in Shanxi Province plays a great role in the promotion of regional economic development. Besides, this essay makes detailed calculations of contributions the listed companies in Shanxi Province provides to GDP, revenue and employment solution for the regional economy. Finally, the essay summarizes the article and found that the listed companies in Shanxi Province make a big contribution to economic development of Shanxi Province. Then makes suggestions and prospects for the coordinated development of listed companies in Shanxi Province and regional economy.