Financial investment risks in parmaceutical industry: analysis on fluctuation of stock price

Abstract

With the constant development of market economy, medical industry is developing rapidly, and many listed pharmaceutical companies have emerged. Stock price is an important standard for measuring the industrial development condition, and its influence factors are concerned by investors and issuing enterprises all the time. In this study, the factors affecting stock price were investigated taking the stock price of listed pharmaceutical companies in Shanghai in 2016 as the research samples and using correlation analysis and regression analysis. Variables such as earnings per share, drug price policies and quick ratio were introduced for correlation analysis. The research results suggested that the influence of earnings per share on stock price was the largest; the higher the earnings per share, the higher stock price; interest rate could also affect the fluctuation of stock price. This works aims to offer an evidence for investors who are subject to invest listed pharmaceutical companies.

https://doi.org/10.5912/jcb835
Requires Subscription or Fee PDF

Unless specified by prior arrangement, the author agrees to the following terms and assurances:

  1. For myself and on behalf of the other authors listed on this work, I assign to thinkBiotech LLC the copyright* in the contribution for the full term throughout the world.
  2. I/we further give to the following assurances
    1. I am the sole author of the contribution, or, if not, I have the written authority of the other authors to transfer the copyright* to thinkBiotech LLC and give these warranties;
    2. I and (where appropriate) the other authors are entitled to transfer the copyright to thinkBiotech LLC and no one else would be entitled to prevent us from publishing the contribution;
    3. To the best of my/our knowledge, all the facts in the contribution are true and accurate;
    4. The content of the contribution is entirely original to me (and where appropriate to the other authors) or, if not, the written permission of the owner of the copyright in any material copied from elsewhere has been obtained for all media (all such permissions to be attached to the contribution as supplementary files);
    5. Nothing in the contribution is obscene or libellous;
    6. Nothing in the contribution infringes any duty of confidentiality which I/or the other authors may owe to anyone else.
    7. I and/or the other authors have obtained the appropriate clearances from my/our employer(s) or other concerned institution(s).
* Works by US government employees prepared as part of official duties are in the public domain and the authors are therefore exempt from copyright assignment.