Empirical Study Of Correlation Between The Listed Company’s Stock Price And Financial Indicators

The stock market is an important component part of the capital market, especially for China’s young capital market which starts relatively late and still in the growth period. The stock market investors keen to participate in the stock market. For China’s stock market, the problems and opportunities coexist, on the one hand, the speed of development of China’s stock market is high. On the other hand, the problems existing in the development of China’s stock market is more prominent. Because more and more investors and analysts involved in the market. And more and more money surged into the market. The vitality and development potential have been brought into the market, at the same time the loopholes and problems also have been arisen. In order to make stock market of China to be mature. Then in order to build more rational investment environment to investors. And in order to guide China’s stock market and even the entire capital market to absorb the development experiences and advantages of developed capital market and to step close to the developed capital markets. We need to dig the development rule and essential feature of the current market. Among them, listed companies which are the stock market’s main body are the core part. Namely the stock price reflects the value of listed company. And what the market investors and analysts focus on is the essence of the intrinsic value of listed companies. The supervision and administration institution are also through the management of the information disclosure system of listed companies to improve the supervision mechanism. The information which can mostly reflect the operating performance of listed companies and the intrinsic value of listed companies is the financial indicators.From the logical relationship, firstly, this article analyze the present development situation of China’s stock market and existing problems of this market. Then, set up the correlation between stock price and financial index theory framework in qualitative research analyzing. Next then carry on a systematic carding of the stock price formation mechanism, the influencing factors of stock price, the classification of validity of market, the mechanism of financial indicators for the stock market. All of these give a clear and reliable theoretical basis to the empirical analysis. By establishing the model, using the method of empirical analysis, the quantitative study reveals the correlation between stock price and financial indicators of China’s A-share market. Finally, using the theoretical tools in combination with the actual situation of China’s stock market to analyze the empirical results and to give countermeasures and Suggestions.