Relations Between the Performance of Real Estate Listed Companies and their Stock Prices

Abstract

This study exams the relationship between five kinds of financial indexes and stock prices of the real estate listed companies. Findings show that profit ability, debt paying ability and cash flow ability affect the share prices positively. Especially, basic earnings per share have the most influential effects. But the strength of the influence of the overall financial performance is weak. Many other factors could affect the stock price. In addition, the stock market effectiveness of the real estate industry of our country is weak, financial information disclosure regulation needs improving. Investors also should focus on the information disclosure of financial statements.