Effect Of Changes In Interest Rates On Financial Listed Company's Share Price

Assume the role of the financial sector financing and investment, is the social hub of the allocation of resources, but also the center of contemporary economics. A country’s development is inseparable from the development of the financial sector. Therefore, the development of financial companies listed on the country’s economic development has a crucial role. Development of financial companies listed on its stock price often closely linked. Interest rate policy is one of the most important means of national macro-control. Level of interest rates on the one hand the impact of listed financial companies financing costs; hand affect investor demand for the stock, along with the impact of volatile financial listed companies in both stock prices.By drawing the mature Western system of economic theory and empirical research methods, this paper analyzes the impact of changes in interest rates on the financial research company listed on the stock price. First, from the theoretical point of view, an overview of the factors that affect stock price volatility, macroeconomic factors, including macroeconomic policy factors, the company and other factors, some factors are measurable, others are unpredictable, how to find these potential factor is very challenging problem. The study found that the market trend and interest rate policy is an important factor affecting the financial listed company’s share price volatility. Then theoretically analyzed the theoretical model listed company’s share price in interest rates and financial relations, ways to changes in interest rates on the financial impact of a listed company’s share price and interest rate changes on short and long term effects of the financial analysis of the impact of listed company’s share price, and by changes in interest rates on the financial empirical test impact on listed company’s share price, the study showed Chinese interest rate changes on financial listed company’s share price to a negative correlation between the presence of long-term, will have an impact in the short term, but the role of interest rates is limited, and there is delay, so the market again return to long-run equilibrium situation requires some time. Finally, the foregoing analysis, policy recommendations to achieve the healthy and stable development of the financial markets.