Study On Relations Of The Performance Of Power Listed Companies And Stock Prices

The effectiveness of capital market hypothesis (EMH) tells that the market prices of financial products are already reflected in all of the information. Therefore the prices of financial products can be equated with the real investment value of the product, Which means that stock prices should reflect the true investment value of the stock on the assumption of the effectiveness of the stock market. However the real investment value of the stock is generally generated through the performance of listed companies. Therefore studying the relation between the performance of listed companies and the stock prices have great theoretical and practical significance.The paper takes the 45 power listed companies from Sina Finance as samples and selects the four quarters'financial data of 2008 respectively to make an empirical analysis on the relation between financial datas and stock price datas. The main contents of the dissertation are as follows:1.Established the indicator system that shows the comprehensive performance of power listed companiesOn the basis of the existing comprehensive evaluation systems of listed companies, the paper has established a indicator system of comprehensive performance to reflect the company comprehensive performance that selects respectively 13 indicators from profitability, growth capacity, solvency, cash flow, operating capacity in five aspects.2.Making an associated regression analysis on the relations between the performance indicators of the power listed companies and stock pricesThrough the correlation regression analysis of the 13 performance indicators and stock prices, The paper gets the conclusion that There is relatively strong relation between the profitability indicators of listed companies and stock prices in the four quarters of 2008. Profitability indicators is also relatively strong explanatory power for the stock prices. Additionally, there exists a linear correlation between the growing ability indicators of listed companies and stock prices. The growing ability indicators also has a certain explanatory power for the stock prices.3.Making the empirical analysis the relations between comprehensive performance of the power listed companies and stock prices Use the principal component analysis method to remove a total of 13 performance indicators and identify the principal component linear weights, the paper gets the conclusion that there exsited significant linear correlation between an integrated performance and stock prices and the integrated performance has a certain degree of explanatory power for the stock prices.Through the empirical analysis of the relations between the performances of listed companies and stock prices, this paper argues that a listed company's quarterly financial report released is attentioned by the investors. But investors limited to the level of knowledge and investment in mind other factors. The investors remain pay more attentions on the profitability indicators and insufficient attention to other indicators. There is a significant linear correlation between the comprehensive performances of power listed companies and stock prices.