Listed Companies' Financial Status And Its Stock Price Relevance Of Empirical Research

Since 2006, Chinese stock market has been going out from the downturn and usherring in the great bull market. Stock can be talked about everywhere, the stock market is no longer elusive mystery ,while really have been going to the ordinary home, speculating craze is sweeping across the land of China. Like the other commodity markets, the stock market's invisible hand is still the price that accords to the company's value fluctuates as a signal. In order to fully understand,explain and expect the price, the investors in the market largely base on publicly listed enterprise's financial report. In different types of cycle reports, the annual financial report of enterprises plays a very important role in conveying the information to the stock market, what it transfers is that the fundamental's information in the perspective of investment. Financial indicators is the financial report's enrichment, so studies of financial index system and the relevance of the share price is very necessary. First this paper has the theoretical basis on F-0 model, and explores the relevance of two basic financial indicators(earnings per share and net assets per share) and stock price, if there is relevance,then what is the ability to explain for the price, at the same time also inspecte the regularity of the ability of this interpretation emerged at different time. Second, as two independent variables in F-0 model the earnings per share and net assets per share simplify the accounting report information of a profit report and balance sheet, but also lose some information in the simplifying.This paper have the starting point which react enterprises consolidated financial situation, grade on sample enterprises using principal component analysis methods, make score results of listed companies as a comprehensive response of the financial situation of the independent variables, study its relevance with the prices, including the explanation on price and if there is a stable relationship prices in different years. This paper is divided into five parts:ChapterⅠis introduction for significance of the background of the study the choice on the financial situation and stock prices relevance, which is divided into reality and theoretical background, practical and theoretical significance.ChapterⅡis the Review of the Literature focus on the reviewe of represented literature in the financial situation and the relevance of the price shares, which divided into domestic and foreign literature review and do specific carding in representation of literature at home and abroad.ChapterⅢresearch the financial situation and the relevance of price on the basic F-O model, model use earnings per share and net assets on behalf of listed enterprises'the financial position and six four-months'moving average of closing price as the dependent variable. First selecte a fixed average price, and explore the differentin types of earnings per share and net assets per share for the stock price in the interpretation of capacity there, and then explain six moving average closing prices using fixed types assets per share and net earnings per share , explore targets on the ability to interpret the average pricein the time law.ChapterⅣchose a most representative enterprises listed financial indexsystem' financial situation, and reduce the system to one-dimensional targets in specific measures, make the indicators as an integrated enterprise variable which is a response to the financial situation, studying it with the stock moving average price relationship,on the one hand to explain its inspection capacity, on the other hand inspect if there is a relatively stable relationship in consolidated financial condition and stock prices in different years.ChapterⅤas investment recommendations, policy proposals and this paper deficiencies.The innovation in this paper are three points:(1) It explore the the differences in ability of different types of share in the assets and earnings per share in explaination of stock price. In the Previous literature we use financial indicators to explain the stock price, often not distinguish between its types, whether is this distinction reasonable, we willin this paper presente from the perspective of empirical explanation. (2)Studying on the consolidated financial status of listed companies with their stock price correlations. This paper draws on the financial situation of the listed companies integrated score methods and on which basis studied correlations the consolidated financial condition and price.(3) Moderate of the financial indicators in the comparison between different industries when treatment improvements. Some financial indicators can be compared in different industries, some are not.which in different industry can not be compared is the modest target indicators, the paper make absolute indicators to the relative indicators of ways to improve the problem solution.