Research On The Influence Of Market Maker System On The Liquidity And Volatility Of The New Third Board Market

The 18 th National Congress of the Communist Party of China put forward the strategy of innovation-driven development to improve the contribution rate of innovation and technology to economic development.At present,the number of small and medium-sized enterprises in our country is very large,which will positively respond to the innovative development strategy of our country.However,the problem of financing difficulties has always restricted the development of small and medium-sized enterprises in our country.The continuous development of the new three-board market caters to the demand of the current economic situation.As an important part of the multi-level capital market,the new third-board market provides financing platform for the small and medium-sized enterprises,especially the innovative enterprises in science and technology,which to a great extent improves the financing ability and enterprise value of the enterprises.In the early stage of construction,the new third board market has the problems of low liquidity and high volatility.In order to promote the healthy development of the new third board market,To increase liquidity and reduce volatility in the new third board market,on August 25,2014,the new third board market introduced a market-maker system.More and more enterprises choose to list on the new third board or to change the original agreement transfer mode to market making transfer mode.The number of listed companies expanded rapidly from 356 at the end of 2013 to 11630 by the end of 2017.The introduction of market-maker system to the new three-board market has brought positive and positive impact.This paper studies the influence of market maker system on the liquidity and volatility of the new third board market from the perspective of market micro transaction structure theory.This paper introduces the main contents of trading mechanism and market quality,combs the relevant literature on the liquidity,volatility and validity of stock market by domestic and foreign scholars,and puts forward two hypotheses of this paper.That is,the market maker system improves the liquidity of the new third board market and reduces the volatility of the new third board market,and the empirical analysis of the impact of the market maker system on the liquidity of the new third board market,This paper selects monthly turnover rate and monthly turnover as the index to measure stock liquidity,and studies the influence of market maker system on stock liquidity from the perspective of individual stock.The main content of the study is to compare the liquidity differences of listed companies before and after making the market by means of T test and Wilcoxon test.Then the paper analyzes the influence of marketer system on the liquidity of listed companies by the tendency matching score method and double difference method,and empirically analyzes the impact of market maker system on the volatility of the new third board market.Through the GARCH model fitting the volatility rate of the new three board component index and the new third board market making index,the dynamic volatility is used as the index to measure the market volatility,and the influence of the market maker system on the liquidity of the new third board market is studied from the market point of view.The main content of this study is to analyze the different volatility rates between the new three boards’ component index and the new third board’s market making index by using the method of nonparametric test,so as to find out the influence of the market maker system on the new three boards’ market volatility.Finally,according to the current situation of the development of the new third board market and the empirical results,the paper puts forward some suggestions to promote the development of the new third board market.