Relationship Between The Performance And Stock Price Of China Agricultural List Of Companies

In the age of the split share structure, nearly two-thirds stake can not flow in China’ssecurities market, for the existence of non-tradable shares and outstanding shares with sharesof different weights, different price "and other issues, the stock market has speculativesecurities, market information distorted, the insider trading were all the age, the stock pricingmechanism distorted, the share price can not truly reflect the intrinsic value and performanceof listed companies, these phenomena has seriously hampered the healthy development of thestock market. The share reform began in2005which trying to improve the structure of listedcompanies to achieve real securities market supply and demand and pricing mechanisms topromote the healthy development of China’s securities market. With the advance of the sharereform, information disclosure and market supervision of listed companies in China continueto strengthen and improved, the value of the stock price correlation should also be furtherimproved. Based on this background, this paper will research the relationship of the stockprice and financial performance, to verify that the effective of the share reform on improvingmarket efficiency.This article studies the agricultural listed companies which has completed the sharereform, the research sample is financial data and stock prices from2004-2011, draw onexisting listed companies performance evaluation method based on the establishment of asuitable agricultural listed companies performance evaluation system. Through empiricalanalysis of correlation and regression results for eight years stock prices and consolidatedfinancial performance and individual financial indicators were compared, both before andafter the share reform to more fully evaluate the correlation between the size of the trend, aswell as on the financial performance influence and change the characteristics of the stockprice, to measure the reform on agricultural listed Corporation whether achieve the desiredfrom this important aspect.The results of this study show that with the advance of the share reform, the correlationof the stock price and financial performance has not enhanced obviously. After furtheranalysis, in either before or after the share reform, agricultural listed companies’ stock prices reflect the profitability indicators most relevant to the strongest of which, net assets per shareand diluted earnings per share for its explanatory power. Stock prices reflect the operatingcapacity, the ability to grow, solvency, cash flow capacity indicators before and after the sharereform is weak, no significant change. It shows that the share reform did not improveagricultural listed companies stock price and financial performance significantly. Combinedwith the conclusion of the study, this paper proposes some corresponding improvementmeasures and recommendations based on the characteristics of China’s agricultural listedcompanies.