Research On The Prosperity Of Listed Companies In China And Its Correlation With The Trend Of The Stock Market

As an important force in the Chinese capital market,listed companies have experienced nearly 30 years of development since 1990 and have made tremendous contributions to China's state-owned enterprise reform,economic development,and industrial upgrading.However,the overall situation of the development of listed companies lacks indicators for objective evaluation,as well as the adverse impact on the capital market caused by the dramatic ups and downs of the stock market.How to eliminate this adverse effect is a difficult problem for securities market supervision.The problem to be solved in this study is to find the internal link between the Prosperity index of listed companies and the stock market's rise and fall.Firstly,we need to calculate the Prosperity index of listed companies,and secondly,we need to analyze relationship about the Prosperity index and stock index of listed companies.In view of the above two requirements,we first calculated the Prosperity index of listed companies,and found out through the combing method that the R&D methodology of the China Business Bureau's corporate climate index and the R&D methodology of the Yangtze Delta's small and micro business climate index all use the weighted synthetic method.However,there are also differences between them.The business climate index developed by the National Bureau of Statistics of China was completed through a questionnaire survey.All of this was based on the synthesis of subjective data.The spot data was weighted by 0.4 and the expected data was weighted by 0.6.The method of the Prosperity index of the small and micro enterprises in the Yangtze River Delta is subjective data from both questionnaire surveys and financial data from the company's annual report.The objective data is weighted by 0.4 and the subjective data is weighted by 0.6.Because the survey of listed companies is not realistic,it is also not sustainable.Therefore,the basic data from the annual report financial data of listed companies is used as the R&D indicator of the listed company's Prosperity index.The classification of the Prosperity indicators uses seven secondary indicators of production,sales,investment,cash flow,cost,profit,and employment.There are also several third-level indicators,involving a total of sixteen three-level indicators.On this basis,the previous period's prosperity index and the current period's prosperity index are synthesized.Lastly,the index of the previous period and the index of this period will be empowered respectively.The previous period will have an empowerment of 0.3,the current period will have a weight of 0.7,and then the listed company's Prosperity index will be synthesized.Using the listed company's Prosperity index research method,the listed company's climate index was calculated from 2001 to 2016.The data shows that the listed companies' climate index is all above the critical value of 100,and its overall trend is upward.Then we calculated the public company climate index of the main board,small and medium board,Growth Enterprise Market,Shanghai Stock Exchange,Shenzhen Stock Exchange,Yangtze River Delta,Pearl River Delta,software service industry and electrical equipment industry.At the same time,it also described the listed company's classification prosperity index in 2016 and calculated the Prosperity index of listed companies in some provinces and some industries in 2016.Through comparison,it is found that the business climate index of Growth Enterprise Market listed companies is stronger than that of small and medium-sized board listed companies,and the Prosperity index of small and medium-sized listed companies is obviously stronger than that of listed companies on the Main Board.Before 2008,there was not much difference between the sentiment index of the listed companies of the Shanghai Stock Exchange and the public companies' sentiment index of the Shenzhen Stock Exchange.After 2008,the sentiment index of the listed companies of the Shenzhen Stock Exchange was significantly stronger than that of the listed companies of the Shanghai Stock Exchange.Then sorted out the major indexes reflecting the stock market's ups and downs in Shanghai and Shenzhen,selecting the CSI 300,the small and medium board stock index,the Growth Enterprise Market stock index,the Shanghai Composite Index,the Shenzhen Composite Index,the Yangtze River Delta Stock Index,the Pearl River Delta Stock Index,and software Nine indices,such as the service industry stock index and the electrical equipment industry stock index,are technically processed to facilitate the correlation analysis between the index and the index of the corresponding listed companies.The Granger causality test was conducted on the above nine stock indices and their corresponding listed companies' Prosperity indices.The results show that there is a two-way or one-way Granger causality between the six indices,especially the bidirectional Granger causality between the listed company's comprehensive prosperity index and the CSI 300,and the remaining five one-way Granger causalities.There are four unidirectional Granger causalities in the relationship between the listed company's Prosperity index and the corresponding stock index,indicating that the listed companies' Prosperity index has a certain impact on the corresponding stock index.The other three cases that do not have Granger causality are the Growth Enterprise Market Index,the Shanghai Composite Index and the Shenzhen Composite Index.The reason is that the time sequence of the Growth Enterprise Market Index is too short,while the Shanghai Composite Index and the Shenzhen Composite Index are due to the listed companies' Prosperity index in the stock index.There is a difference between the samples.The samples of the listed companies' Prosperity climate index are A-share listed companies in the Shanghai and Shenzhen markets,while the Shanghai Composite Index and the Shenzhen Composite Index also include B-shares in two markets.The main conclusion of this study is the successful development of research methods for the listed companies' Prosperity climate index,which lays an objective index system for the development of listed companies.And through calculation and verification,the method for calculating the Prosperity index of listed companies developed in this research is feasible and scientific.The calculation results are also roughly in line with the development of listed companies.At the same time,Granger causality exists between the Prosperity index of listed companies and the stock index.The Prosperity index of listed companies has a certain influence on the rise and fall of the stock market.