Relations Between The Performance Of Listed Companies And Their Stock Prices Based On Empirical Data Of The SME Board

On the May17,2004, The Chinese Small and Medium Enterprise Board was founded in the Shenzhen Stock Market. Now, the board has been set up nearly eight years time in china. As the listed company most are the high-tech companies, they have been widespread concerned by the market because of their own high-growth and high-risk. The financial performance disclosed by the listed companies is the most significant information source. With the development of the stock markets, financial performance, which reflects the operation and profitability of listed companies, are gradually becoming a significant basis for analyzing the stock’s value. Therefore, it is very important to make sure the correlation between the financial performance and stock prices of the listed company.In the valuation model perspective, based on the F-O model, the thesis using the method of combing the correlation analysis with multi-element regression analysis, and an empirical study on the financial performance of companies which are listed in SME board of2008through2010. The thesis tests the influences of financial information which can reflect the performance conditions on the stock price, and prove the function of financial performance in the second board market of china. The research results of the thesis provide the theoretical basis and decision-making instruments.Finally the thesis draws the conclusion that there is a significant relationship between financial performance disclosed and the stock price in SME board, financial performance is strong in explaining the changes of stock price. At the same time financial performance concerned by the market in SME board is also gradually shift its growth and risk, and not just confined to the current concern about the development of the enterprises.