The Research On The Relevance Of Financial Indicators And Stock Yield In Listed Companies Of GEM

During the period from early 2010 to the end of 2015, the lowest comprehensive index of GEM is 585.44, the highest was 4037.96.Especially,the fastest rising stage was the period between January 2015 and May 2015, just four months, GEM composite index soared to more than 4000 points from under 2000 points, rose by about 137%. On May 26, 2015, the economist’s website made a comment that this wave of the bull market in China is pushed by rich new-comers in stock market,they also said that the “bubble” in GEM was on the verge of bursting.Gem listed company has the characteristics of high growth, high risk so that investors often make investment decisions according to disclosure information, one of the most important is the disclosure of the financial statements of listed companies,. According to the theory of stock price, the stock yield should be a embodiment of the value of listed companies, to be able to reflect the public disclosure of information of listed companies, in order to study whether the gem market if there is a “bubble”, this article will mainly study the relevance of listed company’s stock yield and financial indicators in GEM.The first chapter of this paper analyses the characteristics of GEM, including the characteristics of the companies in this market, investors, market information and the stock prices of the GEM market in China. The second chapter introduces thefactors affecting the stock yield on securities market in our country in two aspects:financial and non-financial factors in detail, and theoretically analyzed the influence of these factors on the stock yield. The third chapter is the empirical part. Filtering all data,there are 33 listed companies left. Take these 33 listed companies’ s data of financial indicators from annual reports during 2010-2015 as a sample to analyze the relevance of financial indicators and stock yield in listed companies of GEM. In the selection of panel data regression, found that only profit ability to show the correlation between financial indicators and stock yield. Earnings per share is the most relevant financial indicators in the four financial indicators which represent the profitability of a company, then make a test to verify the correlation of earnings per and stock yield. Firstly, examining the applicability of CAPM capital asset pricing model and Fama- French three factors model on GEM in China. The results show that CAPM capital asset pricing model is more suitable for the GEM of our country.Adding the earnings per share as explanatory variables in CAPM, I found that the fitting degree of extension model is better than the original model, concluding that earnings per share on stock yield significantly positive correlation. The empirical results show that the listed company’s stock pyields only contain the profitability of the financial statements of listed companies. Debt-paying ability, operation ability and development ability of financial indicators are not related, which stated that the GEM in China are still in weak type of effective environmental and the soar of GEM index is not reasonable.The fourth chapter is some suggestions on increasing disclosure contents, strengthening supervision, taking severe measures on market rumors and enhancing education on investors in order to help investors make correct decisions on investment.