Analysis Of Valuation Deviation Of Listed Companies In The Banking Industry

Forty years since the reform and opening up in 1978,China's banking industry has achieved outstanding development.From the central bank and state-owned banks to different banks gradually set up,the banks introduced domestic and foreign investors to enhance the bank's strength and gradually listed in different banks.China's banking industry has not only gradually refined its banking types,but also continuously innovated in its business operations.The overall strength has made great progress.Along with the needs of China's economic construction,China has gradually formed a financing model based on indirect financing.The banking industry has become the backbone of China's absorption of savings and financing,and supports China's economic development from the financial aspect.As a basic task of undertaking financing funds,the banking industry is considered to be a heavyweight enterprise in the market when China's financial market is not fully mature.According to the performance report of listed banks,in 2007-2018,the ratio of net profit in the banking industry to the A-share market has never been lower than 40%.However,the banking industry has only 15%of the market value of the entire market.Therefore,we consider whether the valuation of bank stocks can show its true value.In view of the special characteristics of the bank,the value of debt creation,the high leverage and the high risk,the fifth part of this paper uses the P/B valuation method to measure the degree of deviation of the valuation of listed companies in the banking industry.Combining with the reasons of predecessors' deviation from the valuation of the banking industry,this paper screens the banks with a net book value of less than 1 in the listed companies in 2011-2018,and uses the linear regression method to empirically analyze the unbalanced panel data after screening.In the case of considering individual effects and time effects,trying to analyze the reasons for the valuation deviation of listed companies in the banking industry.After that,the paper divides the bank into state-owned large commercial banks,joint-stock banks and city commercial banks to analyze the reasons for their valuation deviation.The empirical results for all banks and different types of banks show that the expansion of off-balance sheet assets has led to an increase in their assets.This lack of regulated assets is difficult to accurately measure and causes market concerns.In the capital market,it is The stock price is biased towards valuation.On the whole,the larger the banks,the higher the probability that their stock prices will be deviated from the valuation,which may be due to the fact that larger banks are more likely to become systemically important banks.As their scale increases,their risk is gradually reduced..The degree of financial innovation will also affect the bank's valuation.With the gradual deepening of bank financial innovation,the possibility of bank stocks being deviated from valuation is gradually increased.Considering the high complexity of financial innovation products,low transparency leads investors to flow their funds.And the risk is questioned.The impact of bank governance on bank valuation is mainly reflected in the non-performing loan ratio.As the non-performing loan ratio increases,the bank's valuation deviates from the risk.From the perspective of macroeconomic indicators,GDP growth rate also has a significant impact on bank valuation deviations.As the economic situation improves,the bank's procyclical characteristics will lead to the possibility that bank funds may be invested in higher risks.