Empirical Study On The Impact Between Corporate Performance Of Listed Construction Enterprise And Stock Price

The construction industry has been playing an important role in China's economy.While the popularity of construction industry continues to decline due to the decline of fixed asset investment growth in recent years.To stimulate the construction industry to promote,countries are put forward PPP mode and The Belt and Road policy.Because the construction industry needs loaning operation,the construction enterprise ability to finance will determine the future development of the company.To make equity financing easier,this paper mainly discusses the impact of listed companies' performance on stock price.This paper firstly selected 14 types of financial indicators in 5 categories and stock price in 2014 to the three quarter of 2016 to make correlation analysis,so that get the conclusion that investors pay much attention to the profitability indicators and growth indicators which positively related to the stock price of listed construction companies.And the profitability indicators show more importance than the growth indicators.Among the profitability indicators,investors pay more attention to net assets per share and their upward trend.Among the growth indicators,investors pay more attention to the growth rate of operating income and their upward trend.Besides investors are more inclined to select asset class indicators when faced with financial indicators,because investors tend to determine the performance of the company according to the announcement of the successful orders.After that,they construct comprehensive performance evaluation indicator by factor analysis,and analyze the correlation between indicators and stock price and get the results that the comprehensive performance is positively correlated with stock price but the correlation is gradually weakened.The reason for this phenomenon is the abnormal correlation caused by stock market crash in 2015.Then by introducing the dummy variable and consider two hot topics,PPP and The Belt and Road,getting the conclusion that investors are concerned about non-financial performance indicators.At the same time,investors is rational about the stock which reflect only one hot topic while show great expectations about the stock reflecting two hot topics,which caused stock price deviates from the company's performance.Overall,the majority of investors is rational for investing listed construction enterprises.Finally,this paper discusses the current situation of the listed construction enterprises through cluster analysis.It is found that the solvency,profitability and operating capacity of most construction enterprises are generally low.At the same time,in the analysis of the performance of listed construction enterprises,we should not just use financial indicators to determine the performance,but analyze the logic behind the phenomenon.Based on the above conclusions,this paper puts forward some suggestions for the investors and the listed construction enterprises.This will be conducive to the vigorous development of China's construction industry,and promote the continuous improvement of China's capital market.