ANALYSIS OF FINANCIAL RATIOS TOWARD STOCK PRICE OF LISTED REAL ESTATE COMPANIES IN CHINA

Abstract

This research aimed to empirically examine the determinants and technical efficiency analysis of stock price of top 6 real estate companies that went public at Shanghai Stock Exchange in China in the time horizon of 2008 to 2017. This research uses time series and annual data of financial variables and stock price of real estate companies in China. The study is processed and analyzed quantitatively by using descriptive statistical analysis, classical assumption test, multiple linear regression and hypothesis test. The research reveals that the return of investment, current ratio, earning per share, total asset turnover and return of equity significantly affect as much as 55.7%. In terms of variables, return of investment, total asset turnover and return of equity have positive and significant influence towards stock price of these 6 real estate companies, while the other 2 variables have positive but not significant influence.