Research On The Stock Valuation In The Domestic Financial Industry Based On HLM

In recent years,the economy developed rapidly,and the stock market has become increasingly mature.The number of listed companies in China have increased,as well as the stock issuance and financing.Then how to make a reasonable and accurate valuation of the stocks is particularly important for the investors and enterprises themselves.Stock is the one of the main financial instruments in the capital market.Its valuation is affected by macroeconomic conditions(such as changes in the economic cycle,changes in government macroeconomic policies),industry development,and internal factors(such as profitability,operational capacity,solvency,growth capacity).On the basis of reading a large number of domestic and foreign literatures and combining with the existing stock valuation theory and model,this paper analyzes the application of traditional stock valuation method in our country,find out the existing problems,and introduces the statistical analysis of nested data —— Hierarchical Linear Model,introduces the basic principle and application,and analyzes its applicability in stock valuation research.Based on the appropriate model assumptions,such as the effective market hypothesis,the correlation between the stock price and the accounting information index,we select the financial data of the 67 listed companies in China’s financial industry for nearly 5 years,and select the appropriate financial indicators,and establish the valuation model for stock of listed companies in China’s financial industry based on HLM,and use examples to test.Finally,we compare with the traditional valuation method and analyze the difference.