The Correlation Analysis On PE And Excess Return Of Listed Enterprise’s Stock

This thesis studied290firms listed in Shenzhen Growth EnterprisesMarket, and then used Statistical Methods and Multiple Linear RegressionModel to analyze the influence of PE to the excess return of these firmswhich had different financial conditions and different listing backgrounds.Although other researches stated that PE had abundant investment andmanagement expertise and could find potential firms and increase their value,this thesis didn’t find the significant influence of PE in Chinese market. Thenthis thesis gave the explanation of the above phenomenon and made somesuggestions to deepen the reform of Chinese capital market.