A Principal Component Analysis Of The Stock Price In The NEEQ Market

The financial information is the main source of the stock market information.It is also the direct influence factor of stock price.Study the influence of the financial index of stock prices,not only help the stock investors to make rational investment decisions,and help to improve the system of accounting information disclosure.The New Third Board market(NEEQ)not only developing rapidly in recent years and has some characteristics different from other capital markets,such as two kinds of way to trade,insufficient liquidity,industry concentration degree is high,so the study of these factors on the effect of corporate shares in the NEEQ has a certain theoretical and practical significance.We choose 2121 enterprises from 10163 companies of the NEEQ at the end of 2016 at first.This paper takes the monthly closing price as the dependent variable for empirical analysis.Sixteen key financial indicators were selected as independent variables in the 2016 annual report of the 2121 listed companies to reflect the financial statements.At first,this paper using the method of principal component extracted six principal component factors from the 16 financial indexes according to its relevance to financial index and named respectively as profit ability factor,operation ability factor,short-term debt paying ability factor,profit growth ability,long-term debt paying ability factor,assets growth ability factor.Then,convert these six factors into computational variables in SPSS,and the six factors were used as new independent variables for regression analysis.Next,according to the characteristics of the NEEQ,gradually add scale and liquidity to further study its relationship with stock price.Finally,in order to make the model more reasonable,introduce the industry and transfer mode as the control variable and carry out the correlation study of valuation.Research results show that in the New Three Board market,the strongest correlation to the stock price is the operating ability factor,asset growth ability factor.The second is the profitability factor,the profit growth ability factor.They are positively related to the stock price.Solvency factors are irrelevant to share prices.The scale of listed enterprises and the transfer mode and the industry factors are obviously related to the stock price.Liquidity has no obvious influence on the stock price.