Empirical Research On Factors Influencing P/E Of The Listed Companies

P/E ratio is an important evidence to evaluate the value,risk of the stocks and it's used to judge whether a stock market is healthy and sustainable. Therefore there is great value for the government and investors in appraising the status quo of P/E ratio. So nowadays P/E ratio has got the scholar's extensive discussion and research in both theoretical and practical field.Now the P/E ration of Chinese stock market is relatively high, but does that mean that there is great bubble in the market? This question is a hot issue for the economists and stock market researchers. Owing to a lack of deep research on the conditions of Chinese P/E ration from multi aspects, different people have different opinions in the discussion, which in return influence the correct evaluation on the P/E ratio of security managers and investors.Under the precondition that we practice socialism market economy with Chinese characteristic, owing to our own reality, we can't jump to conclusion; we should carry out further analysis of the fundamental characteristics of the P/E ratio. This paper thinks that the P/E ration isn't an isolated index, its size is influenced by many factors, and thus we should make a thorough consideration.During the empirical analysis, the paper first classifies the influencing factors according to conferences from home and abroad,theories and Chinese stock market's characteristic, at last the paper selected 18 ones including macro and micro aspects depend on whether the factors are measurable and equitability;Then the paper makes the analysis in empirical methods, using the data form 2002-2006 of the 180 index of Shang Hai Stock Exchange (SHSE).Through the analysis, this paper finds that: net profit, equity per share, return of equity,proportion of current stock,market value and stamp tax,interest rate has a remarkable influence on P/E ration. But except for proportion of the current stock and interest rate, these factors have opposite influences against the theory. Especially the ones like net profit,ROE and P/E ratio are negatively relevant, the result reflects that our stock market is still at an unripe stage, the phenomenon that the high-quality stock is still underestimated seriously, the whole market has even turned around. After the verification of the model, the paper concludes: at present it is acceptable if the P/E ratio is 0-50.This paper consists of five chapters.