Analysis on Factors Affecting Fluctuation of Price of Financial Stock of Pharmaceutical Enterprises

Authors

  • Ying Meng School of Economy, Shandong Women’s University, Ji’nan, Shandong 250300, China
  • Yuan Zhao School of Business Administration, Shandong Women’s University, Ji’nan, Shandong 250300, China

Abstract

The change of stock price can reflect the changes in development of an industry, and there are many factors that affect the fluctuation of the stock price. This study analyzed the factors affecting the stock price of pharmaceutical enterprises, earnings per share, net assets per share, growth rate of net asset, quick ratio and total assets turnover rate and carried out testing of the hypothesis. After the significance test, the growth rate of net asset and total assets turnover rate were excluded from the regression and the regression was carried using the remaining three factors. The results showed that when the earnings per share increased by 10 yuan, the stock price rose by 152.36 yuan, when the net assets per share increased by 10 yuan, the stock
price rose by 52.26 yuan and when the quick ratio increased by 1%, and the stock price rose by 0.521 yuan. It indicates that earnings per share has the greatest impact on the stock price, which provides some theoretical basis for pharmaceutical enterprises to formulate their development strategy.

Keywords: pharmaceutical enterprises, stock price, influence factors, financial indicator, regression model

Cite As

Y. Meng, T. Zhao, "Analysis on Factors Affecting Fluctuation of Price of Financial Stock of Pharmaceutical
Enterprises", Engineering Intelligent Systems, vol. 27 no. 2, pp. 85-90, 2019.





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Published

2019-06-01

Issue

Vol. 27 No. 2 (2019): International Journal of Engineering Intelligent Systems

Section

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