Financial investment risks in pharmaceutical 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.