Structural Equation Modeling Analysis Of Factors Influencing Stock Returns Of Listed Companies In China

With the development and regulation of China's securities market,China's stock market has become residents and institutional investors an important way. Economic globalization, financial liberalization, the context of the profound changes in the securities market in an unprecedented and affects investor behavior changing and increasingly complex, the factors which influence investor's behaviors and stock returns have become more and more complicated. To get a thorough understanding of these factors and the characters of our market will have afar-reaching significance in establishing a healthy running mechanism, improving the quality of listed companies and providing investors with reliable information and guidance.This paper has summarized the research on methods of investment analysis, research model and its current situation, factors affecting the stock returns to conduct a comprehensive, systematic analysis and summary. On this basis, the introduction of the structural equation model relevant theoretical knowledge, combined with structural equation modeling, screening of existing research in the impact of significant factors, the initial selection of 18 indicators were variable, according to different levels of meaning it is divided into four a latent variable. According to a causal relationship, it has been assumed, initially set model. Select December 31, 2002 to December 31, 2007 in Shanghai and Shenzhen in China to conduct three industries sub-sectors 115 Empirical Comparison. Model parameters estimated by the model of evaluation and correction, finalized four latent variables of the path and effects, and four measurements in the right model have significant effects indicators arrive at more complete of structural equation modeling. Finally, through comparative analysis of three industries come to the industry factors also affect the stock returns of the significant factors, and four latent variables through the effects of comprehensive analysis, to China's securities regulator, listed companies and investors to participate in three types of stock market who proposed the establishment of information monitoring mechanism, strengthen the violated punishment; establish the integrity of consciousness, an internal integrity mechanism; establish the correct investment philosophy, comprehensive analysis of financial indicators, macroeconomic policies, market factors that guide the investment proposal.