Financial Ratios and Stock Returns on China’s Growth Enterprise Market

Zhang, Zhaohui

doi:10.5430/ijfr.v6n3p135

Cited by 8 publications

(11 citation statements)

References 27 publications

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“…For firms with incomplete or confusing data, they have been removed from the sample. Regarding the missing data in the stock markets, we replaced them by the average of the three previous periods in line with the existing empirical studies on the topic [28]. We finally have 55 companies in the media industry; 95 in the power industry and 88 companies for the steel industry.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Indeed, several authors [24] [25] [26] [27] showed that the EMH cannot be assumed in the same way than in the Western markets, in particular concerning the synchronicity of stock price movements. Based on regression results, among dozens of financial variables which were tested, Zhang [28] concluded that the year to year revenue growth is found to be the most significant variable for predicting stock prices. This paper aims at studying the predictive power of financial ratios in China through a statistical analysis of the relationship between stock prices and financial ratios for the 3 major Chinese sectors as detailed in the following sections.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices

Ma¹,

Ausloos²,

Schınckus³

et al. 2018

TEL

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The informational context is regularly questioned in a transitional economic regime like the one implemented in China or Vietnam. This article investigates this issue and the predictive power of fundamental analysis in such context and more precisely in a Chinese context with an analysis of 3 different industries (media, power, and steel). Through 3 different kinds of correlation, we examine 25 financial determinants for 60 Chinese listed companies between 2011 and 2015. Our results show that fundamental analysis can effectively be used as an investment tool in transitional economic context. Contrasting with the EMH for which the accounting information is instantaneously integrated into the financial information (stock prices), our study suggests that these two levels of information are not synchronized in China opening therefore a door for a fundamental analysis based prediction. Furthermore, our results also indicate that accounting information illustrates quite well the economic reality since financial reports in each industry can disclose a part of stock value information in line with the economic situation of the industry under consideration.

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Section: Methodology and Datamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices

Ma¹,

Ausloos²,

Schınckus³

et al. 2018

TEL

View full text Add to dashboard Cite

show abstract

“…Sedangkan Hasil penelitian yang dilakukan oleh (Mirza et al, 2016) dan (Zhang, 2015) menunjukkan bahwa DER berpengaruh signifikan dan positif terhadap return saham.…”

Section: Pendahuluanunclassified

“…Profitabilitas dalam penelitian ini diproksikan dengan Return On Equity (ROE). Return on Equity merupakan rasio yang untuk mengukur laba bersih setelah pajak dengan modal sendiri (Kasmir, 2013: 196 (Abdullah et al, 2016) dan (Petcharabul and Romprasert., 2014) tetapi didukung penelitian yang dilakukan (Zhang, 2015), (Mirza et al, 2016) (Anwaar, 2016), (Kennedy, 2010) akan tetapi mendukung penelitian yang dilakukan oleh (Aisah, 2016) (Abdullah et al, 2015), (Shafana et al, 2013)…”

Section: Pendahuluanunclassified

Pengaruh Leverage, Profitabilitas, Firm Size, Dan Likuiditas Terhadap Return Saham Perusahaan Sektor Industri Barang Konsumsi

Pradiana¹,

Yadnya²

2019

EJMUNUD

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Stock return is an advantage obtained by investors in stock investment. One sector whose stock returns fluctuate and has a high inventory turnover is the consumer goods industry. The existence of stock return fluctuations is the background of this study which aims to determine the effect of leverage, profitability, firm size and liquidity on stock returns on the consumer goods industry sector companies in the Indonesia Stock Exchange in the 2014-2016 period. The sample used in this study amounted to 33 companies. The method of determining the sample used in this study was purposive sampling method. The data analysis technique used in this study is multiple linear analysis. The results of this study are leverage variables proxied by DER which have a positive and significant effect on stock returns. Profitability proxied by ROE has a positive and insignificant effect on stock returns. Firm size has a positive and significant effect on stock returns. Liquidity which is proxied by QR has a negative and insignificant effect on stock returns. Keywords: debt to equity ratio, return on equity, firm size, quick ratio, stock return

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“…Ding [4] used indicators such as rate of return, turnover rate fluctuation, trading volume fluctuation, price change, and net change in cash flow to construct a GARCH model for stock manipulation identification. Zhang [5] based on the characteristics of the time-series GARCH model, simulated the time-series rate of return. He found that if the rate of return is correlated and the variance of the alteration condition of the rate of return is unstable, it is considered that the stock is likely to be at a non-speculative price.…”

Section: Introductionmentioning

confidence: 99%

Research on Identifying Stock Manipulation using GARCH Model

Pan¹,

Qian²,

He³

et al. 2023

IJACSA

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Continuous rising of economy and investors' demand for funds give a window to easier market manipulation which includes abusing of one's power to raise or lower the price of securities, colluding to affect the price or volume of securities transactions at a pre-agreed time, price and method. In the study, the article aimed to create a sound investment environment, detect abnormal behaviors in stocks, and avoid risks of intentional manipulation. This study is to identify market manipulation and summarize the accuracy of GARCH model analysis with the help of fluctuation forecast trend chart and construction of GARCH model which calculates the sum of the GARCH-α parameter and the GARCH-β parameter of turnover rate, logarithmic return rate, and the trading volume fluctuation. Through the study of this paper, it is found that the stock market manipulation has the following characteristics: the participants are complex and diverse, the manipulation is opaque and has serious consequences, and the stock market manipulation involves a wide range of aspects.

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Financial Ratios and Stock Returns on China’s Growth Enterprise Market

Cited by 8 publications

References 27 publications

Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices

Fundamental Analysis in China: An Empirical Study of the Relationship between Financial Ratios and Stock Prices

Pengaruh Leverage, Profitabilitas, Firm Size, Dan Likuiditas Terhadap Return Saham Perusahaan Sektor Industri Barang Konsumsi

Research on Identifying Stock Manipulation using GARCH Model

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