An Empirical Analysis Of The Financial Position Of Listed Companies On The Stock Price Impact

Since the Shanghai Stock Exchange established in the end of1990, China’s stock market has experienced the stage of shock development, market size is increasingly large and standardized.But compared with foreign mature stock market, China’s stock market shows high price volatility, high frequency and high risk in general.Many factors affect the stock price volatility, including macroeconomic, social and political situation, the relationship between market supply and demand, company’s financial information, market regulation and other factors within the market. However, Listed Company’s financial information can best be utilized by investors.Thus Based on the financial indicators of the steel industry and agriculture, forestry, animal husbandry and fishery information of listed companies and empirical study, analyze and get the main financial indicators which impact stock price, then get the impact of financial indicators. At the same time the paper studies two different sectors of the financial impact on the share price index similarities and differences.The main content of the paper has five parts, the first part is an introduction, including research background, purpose and significance of the study, the main content and the research process used in this study method, this paper briefly describes the defects. The second part is a literature review and abroad, mainly on empirical researches were reviewed. The third part is related to the theoretical analysis, introduced the theory of stock prices, the main factor affecting stock prices, mainly divided into internal factors and external factors, briefly introduced the two models priced stocks, dividend discount model and the capital asset pricing model, the final theory expounded factor analysis method used in the empirical part. The fourth part is the empirical analysis of the financial impact on the stock price index, which is the most important part of this article. Specifically including the followings:First, the empirical analysis of the preparation, including sample selection and data processing, the dependent variable and the independent variables selected; Secondly, respectively, of the steel industry and agriculture, forestry, animal husbandry and fishery do empirical analysis, including the use of Pearson correlation coefficients of the financial indicators and stock prices do correlation analysis, extraction and correlation with the stock price index for factor analysis, the resulting factors as independent variable regression model with stock prices; Finally, the analysis of how the two sectors which have an impact on the stock price of financial indicators, the extent of the impact. The fifth part is the conclusion and policy recommendations derived from this study.Conclusions of this study:financial indicators of listed companies on the stock price have some explanatory power. Both the steel industry or agriculture, forestry, animal husbandry and fishery, factors affect the profitability of the stock price through a significant test, indicating that the stock price and profitability of listed companies have greater relevance. Profitability is the most important factor to determine the stock price, which is also most cared by investors. Meanwhile, because different industries has different market structure, internal structure, and the entire life cycle of the industry in the national economy, the industry characteristics play a very important role in the value of equity investments which also makes factors affect stock prices differ. So investors play attention to different financial indicators information when selecting companies is different.