Research Of The Correlation Between The Financial Indicators And The Stock Price Of The Listed Real Estate Companies In China

As a place for stock issuance and trading,the stock market has raised a large amount of funds to maintain enterprises operation and development,and has played an important role in helping enterprises achieve economies of scale.At the same time,it provided sufficient financial support for capital-intensive enterprises.As an important capital intensive industry and an important pillar industry of national economy,real estate enterprises have extensive and deep connections with other industries,and their prosperity and development also have important influence on the development of other related industries.The financing of the stock market is an important source of funds for real estate listed companies,while the healthy development of real estate listed companies provides an important guarantee for the healthy development of China's economy and stock market.Therefore,there is a close relationship between the real estate listed company and the stock market.China's real estate market has long been suffering from the influence of national policy,and there is a strong speculative stock market in China,which directly affects the real estate listed company's share price change,operation and development.Based on the research results of the factors which influence share price at home and abroad,this paper uses cross-sectional data of financial indicators of real estate listed companies from 2015 to 2017,after stripping out macroeconomic factors affecting factors,the difference of industry,market size and other factors,only starting from the financial index factors,13 financial indexes are selected as explanatory variables in five aspects of measuring the profitability,operating ability,solvency,development ability and current capacity of the listed real estate companies,and the annual average closing price of the listed real estate companies is selected as the explanatory variable,using multiple linear regression to study the relationship between financial indicators and its share price.The results show that earnings per share,price-to-book ratio and return on equity have significantly influences on stock price,and these factors are all belonged to profitability index,which suggests that investors in the real estate listed companies prefer to invest more to companies which have a better financial performance.?Studying the correlation of the financial indicators of listed companies of real estate and stock price can provide scientific decisions for investors,and government can also use the result of this paper to strengthen the regulation of the real estate listed companies to protect the healthy development of real estate industry,and this companies can use the result of this paper to understand their operating conditions and manage risks.