Financial Fairness,Investor Protection And Operational Efficiency

Based on the traditional cognition,fairness and efficiency are seen as a contradiction in many areas.After two centuries of development,thinkers,philosophers and economists discussed on the relationship between fairness and efficiency,putting forward theories such as utilitarianism and the theory of justice.Later,scholars put forward different views that fairness and efficiency have a more complex relationship.Based on equity theory,employees and other stakeholders can make decisions depending on the sense of fairness they received from the corporation,which in turns affect the efficiency of that corporation.Therefore,corporations should pay attention to the impact of financial fairness in order to ensure the stability and improvement of efficiency.Shareholders are of great importance in financial allocation as well as financial management.However,frequent infringements of large shareholders in China's capital market have dampened the interests of small and medium shareholders.There are numerous small and medium shareholders in China's capital market,and their confidence in the stock market have a significant influence on the operating efficiency of the corporation.Therefore,a sound investor protection system can also be a means of protecting China's capital market.Based on the above analysis,this paper measures the financial fairness of corporations from two dimensions of result fairness and procedural fairness fairness,evaluates the operating efficiency from five aspects including profitability,solvency,investment in fixed assets,assets utilization and dividend policy,and constructs the investor protection index from the aspect of corporate governance.This paper takes the China's listed companies from 2011-2015 as samples,and uses the methods of factor analysis,cluster analysis,curve fitting analysis and linear regression analysis to test the correlation between financial fairness and operating efficiency.Investor protection is added in the models as a regulatory variable to analyze the impact of investor protection on the relationship between financial fairness and operating efficiency.Through theoretical and empirical research,the following three conclusions are drawn:(1)There is a positive U-shaped quadratic relation between result fairness andoperational efficiency.(2)There is a positive correlation between procedural fairness and operational efficiency.(3)Under the same conditions,the investor protection mechanism can help the financial fairness to promote the efficiency of business performance,that is,the better investor protection in the corporation,correlation between the financial fairness and the operating efficiency is more significant.