Research On The Factors Influencing The Stock Returns Of Gem

The capital asset pricing model(CAPM),a financial model proposed by scholars SHARP and Linda,has quickly become the core of the current financial theory.In the face of China's rapid economic development,the Fama-French three factor model is inevitably applied by the Chinese stock market,but due to the applicability of the model,the model has encountered many problems in our market.Scholars in China,such as Yan Lin,Huang Xingwang,Wang Nengmin,and Yang(2001),have made a professional study.It is found that the book value ratio(BE/ME)factor in the model has many problems in the Chinese market.The factor in the enterprise is difficult to be integrated into the model as an explanatory variable.Even some people suggest that the model is a model.It is absolutely impossible to use in the Chinese stock market.Although the follow-up study overthrew the unusable conclusions,it also proved that the three factor model was still available in the Chinese market,but the actual interpretation ability of the model was still unsatisfactory.In the rapid development of China,the gem is an important part of the market.If the best stock price of the gem is obtained in the analysis,the relationship between the stock returns and the various factors of the enterprise can be obtained,the operation of the whole market,the steady development of the stock market,the control of the economic and macro view,and the optimal allocation of social resources,The integration of capital and the release and formation of financial products are of great benefit.Effectively enhance the development of the gem.Based on this,this paper analyzes the stock development status of the domestic gem from 2011 to 2016,and fully combines the characteristics of the enterprise in the gem,and studies the influence of the three factor model on the domestic application of the three factor model in China's stock market,and according to the Q-3 pricing model and the previous article.The Fama-French five factor model is used to analyze the excess return on the domestic gem stock market.According to the data and conclusions of these studies,and combining the characteristics of domestic stock market,we then draw investment proposals and relevant research conclusions that are suitable forChina's national conditions.