Factors Affecting The Difference Of P/E Ratio Of Listed Commercial Banks In China Empirical Research

Most investors will choose the P/E ratio method,which has the advantages of wide application range and simple calculation.Although many scholars have conducted in-depth research on price-earnings ratio,most of them are qualitative analysis,lacking of systematization and entirety;Empirical research analyzes the average P/E ratio of the banking industry from macroeconomic indicators,major banking regulatory indicators,and changes in banking assets and liabilities.The reasons for the differences in the P/E ratio between China's listed joint-stock commercial banks are relatively insufficient.Therefore,on the basis of summarizing the previous studies,this paper studies the 30 listed commercial banks in China,and studies the macroeconomics,banking performance,bank characteristics and market factors to reveal the differences in the price-earnings ratio of commercial banks in China,which provides reference for the management of the market value of commercial banks and helps investors analyse intrinsic value.This article has six chapters.The first chapter mainly elaborates on the background of the topic,the meaning of the topic,the research framework and the innovation.The second chapter mainly summarizes relevant literature at home and abroad.The third chapter introduces the concept of P/E ratio and related theoretical models.The fourth chapter elaborates the direction of the impact of various indicators on the P/E ratio of commercial banks.The fifth chapter firstly uses the principal component analysis method to construct the composite financial indicators,and then carries out empirical research.The sixth chapter is the conclusions and shortcomings of this paper.This paper mainly analyzes the impact of nine factors,such as broad money supply growth rate,macroeconomic sentiment index,compound financial indicator,net interest margin,and circulating stock market value,on the P/E ratio.The degree of interpretation is 62.89%.The inadequacy is factors such as inflation rate,market interest rates,bank personnel compensation,and bank branding effects were not taken into account.