Empirical Study On Correlation Between The Financial Information Of Listed Commercial Banks And Their Stock Prices

In recent years，the flotations boom has attracted many commercial banks. Sofar，16commercial banks have been listed companies. With banks rolling out theirannual report each year，we find that the performance of these commercial banks arein good state，their financial indicators rose steadily，while the stock price instable.The stock market of our country is not maturely developed nowadays，but listedcommercial banks increased. This area should deserve more attention，there’s amuch smaller body of research on the correlation between financial information andstock price，so this research is valuable.This paper selects12consolidated financial indicators which come from2012annual report of14Shanghai-listed commercial banks as independent variables，average stock prices over the previous trading days from2013February1to June30as dependent variables. Depending on the SPSS and gray relational analysis GM3.0software，our result show that four factors mainly reflect the important content offinancial information，We call them capacity development factor，capital expansioncapacity，solvency factor and profitability factor. Also they are highly correlated withthe stock price，but there are differences in their importance ranking. Differencesderived from the incomplete financial disclosure.Based on the empirical results，this paper gives some suggestions to the capitalmarket and the listed commercial banks of our country. I hope these suggestions willhelp investors and regulators.