The Empirical Study of Compound Rate Prices in Risk Adjustment Model
|Keywords||Valuation theory Discounted Cash Flow Model discounted cash flowmodel|
With the development of China’s capital market, the minds of the investor havebecome more and more rational, an increasing number of people have been realizingthe importance of Value Investing. People focus their attention on the question ofassessing stock.The theory of stock value from Western capital markets, the theoryhave introduced to our country in2000.Because of the relatively late start of theChina’s capital market and the development experience is very special, the theory ofstock value which is born in the West developed capital market maybe not necessarilyadapt to our country. A large amount of domestic scholar do deep research on this areain our country and get a lot of academic achievements. At present the stock valuationmodels have two types: Absolute valuation models and Relative valuation models.Commonly used Absolute valuation models including Dividend DiscountModel(DDM)、Free Cash Flow Mode（lFCF）、Feltham-Ohlson Model (F-O)and BlackScholes Option Pricing Model(B-S). Commonly used Relative valuation modelsincluding FE Model、PB Model and PEG Model.This paper aims to set up a new stock valuation model for better evaluation theprice of the stock. Around this center, in this paper, first of all, expounds the researchbackground and significance and set the stage for later theoretical research. after that,the writer introduced the literature about Dividend Discount Model、Free Cash FlowModel、and Feltham-Ohlson Model at home and abroad. Subsequently, based on theanalysis of related theories, using Shanhai A-share listed companies as samples from2008to2011year to make the empirical research. The empirical results show that, thebigger rate of return on common stockholders’ equity, the higher the price stock. Thequalities of accounting information have a great influence upon the price stock. whendoing some research on the stock of price, we should considered of the effects of timedummy variables, analyze the question with or without the consideration of time,respectively. At last, the writer made a summary for this article and analysis of thefuture research direction.