Abstract
As a representative of the capital market , the stock market has become a barometer of the national economy. The stock prices fluctuation plays as a benchmark role in leading public and private enterprises. This paper studied the relationship between the quarterly financial indicators and stock price movements in Chinas financial industry. Through the methods of literature research and empirical data statistical analysis, regression models are established to explore the relationship between these variables. The results indicated that total asset turnover rate has the largest impact on the stock price increase in financial industry companies among those selected financial indicators. Besides, we compared the results of banks and other financial enterprises to further research. It turns out that there is a big difference between Banks and non-bank financial enterprises. As for banks, there is a significant positive correlation between the multiple of cash dividend protection and stock price movements.
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Notes
- 1.
The stepwise regression analysis was conducted according to the method of F test (criterion: probability of f-to-enter \({<}{=}\) 0.05, probability of f-to-remove \({>}{=}\)0.1).
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Acknowledgements
This paper is supported by an MOE (Ministry of Education in China) Youth Foundation Project of Humanities and Social SciencesProject number:14YJC790053)Basic research foundation of Sichuan University(peoject number: skyb201402, xyzx1506, skzx2015-sb68, skzx2015-zx04, skqy201622).
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Jiang, Q., Wang, X., Li, Y., Wang, D., Huang, Q. (2020). Financial Indicators and Stock Price Movements: The Evidence from the Finance of China. In: Xu, J., Ahmed, S., Cooke, F., Duca, G. (eds) Proceedings of the Thirteenth International Conference on Management Science and Engineering Management. ICMSEM 2019. Advances in Intelligent Systems and Computing, vol 1002. Springer, Cham. https://doi.org/10.1007/978-3-030-21255-1_57
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