A Study On The Factors Influencing The Price-earnings Ratio Of Listed Companies In China

The price-earnings ratio is the ratio between the price per share and the earnings per share.It is one of the most commonly used indicators to evaluate whether the stock price is reasonable or not.It plays an important role in the investors' choice of investment.But the price-earnings ratio cannot rely solely on this single indicator for analysis and judgment.For example,the price-earnings ratio of a stock is on the high side,and investors will not be able to determine exactly what caused this phenomenon from the point of view of the price-earnings ratio level,so that they cannot make a better choice of investment.And through the literature research,we find that our stock market has its own rules of operation,so this paper from the perspective of the micro-impact of the price-earnings ratio,more comprehensively according to the level of the company's management and development.Profitability and risk of these investors pay more attention to the micro-point of view to select the impact of factors research indicators.And the fixed assets ratio and other indicators are added to expand and improve the scope of influencing factors,and further study and analysis of the operating law of China's market to play a role in the price-earnings ratio of the main micro-factors.This paper adopts a combination of theoretical and empirical analysis method.First of all,from the theoretical point of view,the correlation between the selected film city factors and the price-earnings ratio is preliminarily analyzed,and then the model is determined by the correlation analysis and Hausmann test.Multivariate regression and robustness test are used to analyze the main micro-factors that affect the price-earnings ratio in China step by step.The paper also analyzes the main micro-influencing factors of price-earnings ratio and the influencing direction and law of the price-earnings ratio in China.Finally,some suggestions are put forward to investors,business managers and government regulators according to the results of this study and the problems found in the study.The first suggestion is that investors make a better choice of investment by combining the four main micro-factors and factors such as macro-factors and investors'preference to analyze the price-to-earnings ratio.Second,it is suggested that managers should combine the P/E ratio with micro-factors to analyze the possible problems of the company.And it is suggested that managers should pay attention to the immediate and effective disclosure of information,so as to get better understanding and trust from investors.Third,it is suggested that the regulatory authorities should strengthen their management in order to construct Build more efficient and perfect markets.