Correlation Study On The Investment Value And Stock Market Performance Of Financial Listed Companies

China’s securities market has gone through20years from its inception in1990. As a connection hub for listed companies and investors, the stock market has made great performance to promote the development and maturity of China’s market economy. However, as a new rapid development emerging market, the securities market has many deficiencies currently, the stock market performance always divorced from the basic level of listed companies, most of the investors in the capital markets rely on price volatility spreads formed to obtain capital gains, this makes opportunity for the market manipulator to use a lot of money to manipulate stock prices in order to obtain benefits, stock market becomes a tool for dealer to make money, and serious damage the interests of small investors. Moreover, the basic reason what lead these phenomena is that China’s securities market management is not standardized, and have no formed an effective capital market management mechanism, this is the most serious problems to be solved for China’s capital market.The financial market is the distribution center of a huge amount of money, involve a wide range, Strong linkage, it is in the position that "Pull one hair and you move the whole body" in the national economy, therefore, governments have attached great importance to the development of financial market. Since the reform and opening up, China began to reform the financial industry, nowadays, it has formed a Modern Financial Systems that specialized banks as the subject, Central Bank as the core various banks and non-bank financial institutions coexist. As the important position of financial market in national economy, as well as the strong support of national policy, it has become one of the most investment value industry in investors’minds.As a leader in the financial industry, financial listed company should give full play to the demonstration and radiation effects in management, so, In order to effective analyze the effectiveness of China’s securities market, this paper selects financial listed companies as research subjects, through study the relationship between financial investment value of listed companies and stock market performance, to seek the reason of financial listed companies stock prices deviate from the investment value, thereby regulate the financial management of listed companies and actively promote the healthy development of financial market. From an investor perspective, China’s stock market has experienced twenty years of development, While there has some progress, but market speculation still evident. When a mature investors to buy stocks, the decision should be based on the investment value of listed companies, instead of holding the gambling mentality that buy low and sell high. Researching the correlation between the investment value of listed companies and stock market performance can help investors to find out the problems in China’s securities market, thereby reducing its speculation, rational investment.This article parses the root of the basis on the ground of the theory that the law of value of market economy, adopting the research methods of empirical analysis, taking China’s A shares of forty-two financial listed companies as the study object. By analyzing the relevant data in2008-2012to find out the correlation between the investment value of listed companies and the stock market performance, to explain the effectiveness of China’s securities market and provide the basis for equities investors. Paper is divided into five parts:The first part is an introduction, from the aspect of China’s securities market, such as development process, status, problems, characteristics of financial listed companies and so on, analyzes the background and significance of the topic, summarizes the contribution of foreign scholars in the relationship business valuation and corporate investment value and stock market performance, etc, identified research papers, research methods and the overall framework.The second part is combing the basic theory between investment value of listed companies and stock prices, analysis the factors that affecting the investment value of listed companies, summarizes the method of investment valuation and the important significance to evaluate the listed companies’speculative value, based on related theories lay a solid theoretical foundation for the development of the thesis.The third part is the focus of this paper, selecting forty-two financial listed companies from the Shanghai and Shenzhen Stock Exchange as the research object, collecting five years data in2008-2012that can reflect the investment value of listed companies, establishing the evaluation index system that considering the investment value of listed companies, such as profitability, operation ability, growth ability and debt paying ability. And using the factor analysis method to calculate the comprehensive scores and ranking of each listed companies’investment value, then you can visually see better investment value of listed companies.The fourth part is based on the depth of the third part, in order to illustrate the correlation between financial listed companies investment value and stock market performance, the comprehensive scores of listed companies investment value will be calculated as the value of investment indicator; divide the stock market index that can able to reflect the listed companies’investment value into the market index (includeing annual average price, annual turnover, annual rate of return, annual amplitude, annual price change, annual turnover rate) and market risk index (include annual fluctuation rate, beta value etc.). Through establishment analysis model by these two indicators, use Pearson correlation coefficient to investigate the correlation between them, draw the correlation between the value of investments and the stock market performance.The fifth part is a summary of the text; three conclusions of this paper are given. Firstly, the financial listed companies’performance of China’s stock market is seriously deviated from its investment value; Secondly, the phenomenon that China’s securities market lack of effectiveness did not appear continuous improvement trend; Thirdly, analysis the investment value of listed companies can use factor analysis comprehensive evaluation method. Finally, aimed at the lack effectiveness of the securities market in China put forward improvement measures:firstly, the government should give full play to the leading role, and guide the healthy development of the securities market, secondly, it’s need to perfect the market mechanism and improve the information disclosure system of listed companies, thirdly, it’s need to improve the level of the management of listed companies.