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Financial Indicators and Stock Price Movements: The Evidence from the Finance of China

  • Qiang Jiang
  • Xin Wang
  • Yi Li
  • Dong Wang
  • Qing HuangEmail author
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1002)

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.

Keywords

Financial industry Listed companies Financial indicators Stock price Capital market 

Notes

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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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Qiang Jiang
    • 1
  • Xin Wang
    • 1
  • Yi Li
    • 1
  • Dong Wang
    • 2
  • Qing Huang
    • 1
    Email author
  1. 1.Business School, Sichuan UniversityChengduPeople’s Republic of China
  2. 2.Victoria Energy Policy Centre, Victoria Institute of Strategic Economic StudiesVictoria UniversityMelbourneAustralia

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