The Analysis Of Influencing Factors On P/B Ratio Of Listed Companies

In this paper, my study is based on the classic stock-depth analysis of the model, and the integration of domestic and foreign research literature in order. Then set up the extracted factors of the P/B and classify them according to different perspectives and make the corresponding theoretical assumptions. Then I select the listed companies in Shanghai and Shenzhen stock markets in recent5years as the sample data, systematically, comprehensive empirical analysis of its influencing factors, which can further explore and validate factors of the P/B of listed companies in China, and in-depth to provide reference for investors to determine and select stocks.Firstly, this paper is combining both the literature review of theoretical and empirical statistical inference carding research method and select from2009to2013in Shanghai and Shenzhen listed companies as samples of empirical research. Through the analyzing of the classical model about stock price and the factors related to the literature review, we establish the P/B factors system include macroeconomic factors, industry factors and micro factors. There are four possible factors being taken into account the macroeconomic level four possible factors, including the GDP growth rate, money supply, inflation and exchange rates; the industry level may have to consider the two factors, including the economic cycle and the industry life cycle; the microeconomic factors are mainly possible factors for a total of23ratios, and they are divided into three areas, including14financial indicators,5non-financial indicators and4virtual targets.Secondly, considering the above possible factors of P/B ratio, this paper aims to explore the empirical study on microeconomic level. By using principal component regression analysis, the analysis found that the financial indicators of solvency, profitability, growth, operating capabilities and other factors is a positive correlation to P/B ratio. The4non-financial indicators of the proportion of outstanding shares, ownership structure, β coefficient and PB were significantly affected by the presence to the P/B; meanwhile the three concepts related to mergers and acquisitions did not pass the test, the opposite conclusion shows that the affection between mergers and acquisitions to P/B in the current the stock market is still concentrated in the short-term impact, and as the time goes, the impact of acquisitions concept will gradually fade; virtual index introduced by including industry, years have passed significant test, indicating that there is a difference between PB of the affected industries and macroeconomic level. The two virtual indicators, including industry, the year have passed the significance test, indicating that the P/B exist significant differences in different industries and different years.Finally, the investors, corporations and other multi-angle are given targeted research findings and inspiration from this article.