Firstly, the theory and literature of law and finance are summarized.
The theory of law and finance mainly studies the relationship between legal system construction and financial development. MM theorem holds that the essence of securities lies in the predictable future cash flow it represents, but it can't give an answer to why there are differences in financial development between different countries of the same type of securities. Since then, LLSV has introduced legal factors into the specific research to explain financial development for the first time, emphasizing that legal environment factors have an important impact on financial development, and the great differences in financial development between countries are due to the differences in legal systems. At the same time, the publication of this article marks the birth of the theory of law and finance, which has attracted more and more attention from economic and financial economists and jurists. * * * promoted the further development of law and finance theory, and finally formed a new discipline formed by the intersection of finance and law-law and finance. This paper mainly uses the analysis methods of economic finance and econometrics to study the influence of legal system construction on finance, financial system and the efficiency of financial resource allocation. To sum up, scholars at home and abroad have conducted in-depth research on the relationship between legal system construction and financial development. As far as domestic scholars are concerned, the conclusions drawn are quite different because of the different indicators selected. In recent years, China's legal system construction, especially the financial legal system construction, has made great progress, which provides a basis for re-testing whether the legal system construction has promoted financial development. Therefore, based on the research methods of Tan Ruyong and Kui, this paper synthesizes their research methods, improves the indicators and research methods, and selects the data from 2005 to 20 13 to study whether the legal system construction in China has promoted the financial development.
Second, the research design
(A) the selection of samples
In view of the availability of the data needed for the study, this paper selects 23 provinces (municipalities and autonomous regions) in China as the research samples. Among them, the eastern region includes Beijing, Tianjin and Shanghai, as well as eight provinces (cities) including Jiangsu, Zhejiang, Fujian, Shandong and Guangdong. The central region includes seven provinces including Jilin, Anhui, Hainan, Jiangxi, Henan, Hubei and Hunan. The western region includes eight provinces (cities, autonomous regions) such as Sichuan, Guizhou, Yunnan, Shaanxi, Ningxia, Qinghai, Xinjiang and Chongqing.
(B) variable selection and data sources
The variables needed in this paper mainly include financial development, legal system construction and related control variables.
(C) the choice and method of research mode
Because the panel data model can effectively combine cross-sectional data with time series data.
Third, the empirical results and analysis
The variables of financial development index, legal system construction index and control index show strong regional characteristics. Except for the proportion of fiscal expenditure and investment in fixed assets of the whole society in regional GDP, other indicators in the eastern region are higher than the average level of the whole country and the central and western regions. In the central region, except for the proportion of the total investment in fixed assets and the total retail sales of social consumer goods to the regional GDP, other indicators are lower than the national average. At the same time, compared with the western region, only the proportion of total retail sales and total import and export of social consumer goods to the regional GDP is higher than the average level of the western sample. This may be related to the western development, the rise of central China and financial transfer payment.
Four. conclusion and suggestion
Based on the panel data regression analysis of 23 provinces (municipalities and autonomous regions) in October/Kloc-October/March, 2005, it is concluded that there is a positive correlation between the variable indicators of legal system construction and the indicators of financial development, which shows that law and financial theory are applicable in China. At the same time, through the regression analysis of panel data in different regions, the influence of legal system construction on regional financial development presents obvious regional characteristics, which shows that the differences of regional financial development can be narrowed by strengthening legal system construction. Therefore, based on the above conclusions, this paper puts forward the following suggestions on how to strengthen the construction of financial legal system:
(1) Further improve the financial laws and regulations system.
Perfect financial laws and regulations system is the basic condition for financial development and construction, and it is also the necessary condition for implementing the rule of law. It is suggested that laws and regulations that are inconsistent with the matters and hinder the rational allocation of financial resources should be abolished, and forward-looking laws and regulations suitable for China's financial reform and stable development should be formulated through measures such as "perfecting basic financial laws and regulations, filling gaps in financial system, improving financial law enforcement environment, integrating financial laws and regulations and resources, and improving financial security". At present, it is necessary to further accelerate the improvement of a series of basic financial laws and regulations such as the Commercial Bank Law, the Trust Law and the Securities Law. Further accelerate the legislation of financial institutions and businesses, improve laws and regulations, and provide legal basis for the development and withdrawal of financial institutions and businesses. Further improve the legislation of financial safety net, especially for shadow banking, internet finance and private financing, and establish a linkage mechanism between financial innovation and legal system construction to prevent risk transfer and maintain financial stability. Strengthen the legislation of deep-water area reform such as interest rate marketization, exchange rate marketization and capital account convertibility to protect the reform.
(two) to further improve the level of supervision and law enforcement.
Adhere to administration according to law, strictly abide by relevant laws and regulations, establish the authority of law enforcement, further establish and improve the comprehensive financial law enforcement inspection system, promote the transparency of the subject, procedures and responsibilities of law enforcement inspection, improve the systems and procedures of comprehensive financial law enforcement inspection, investigation and evidence collection, document storage and file evaluation, and improve the efficiency and credibility of law enforcement. Further formulate, improve and refine punishment standards to prevent arbitrary punishment and blind punishment. Strengthen the cooperation between departments such as "one line, three meetings", clarify the division of responsibilities, and prevent overlapping and gaps in supervision. Further strengthen the construction of financial law enforcement personnel, establish publicity and education forms such as new law interpretation, legal training, compliance preaching and case warning, regularly carry out centralized education, constantly promote financial law enforcement personnel to learn, understand, abide by and use the law, and constantly enhance legal awareness, rule of law thinking and professional ability.
(three) to further increase the intensity of illegal punishment.
Intensify illegal and dishonest behaviors, increase the cost of market players' dishonesty, make full use of existing laws and regulations, and increase penalties, so that those who are "wet" and "adulterated" will pay a heavy and high price. Further clarify the punishment procedures and standards, change the dilemma that it is easy for financial institutions to win the case but difficult to implement it, and effectively protect the legitimate rights and interests of financial institutions.
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