Empirical research of price-to-book value's influencing factors in the listed real estate companies

摘要

Price-to-Book Value (P/B) is an important financial indicator which measures the development potential of a listed company. Studying P/B's influencing factors in the listed real estate companies has both theoretical and practical significance to the sustainable development of national economy. This paper discussed the listed real estate companies in China's stock market from 2008 to 2012, and analyzed P/B's influencing factors through multiple linear regression method. The research found that return on equity, operating profit growth rate and asset-liability ratio have a significant positive effect on the increase of P/B. The largest shareholder's shareholding ratio, size of the company and net assets per share are negatively correlated to the increase of P/B. Finally, this paper presented some suggestions to maintain a reasonable P/B in the listed real estate companies on the basis of the research results.