An Empirical Study On Affecting Factors Of Stock Returns Based On the Structural Equation Model
Li Hua1,2, Dou Shiting1, Sun Qiubai1*
1School of Business Administration, University of Science and Technology Liaoning, Anshan, CHINA
2Institute of Quantitative &Technical Economics, Chinese Academy of Social Sciences, Beijing, CHINA
*Corresponding Author: Sun Qiubai
Abstract: This paper uses the structural equation model, and selects 300 listed companies of manufacturing as the research object, and chooses investor sentiment, profitability and financial index as potential variables,
selects a few observed variables to study the influence on stock returns. The results found that profitability, investor sentiment and financial index have certain influence on stock returns, and it is a positive correlation.
The biggest impact on stock returns is profitability, and then followed by the investor sentiment and financial conditions. In this paper, the research provides a certain reference for investors to make rational investmentdecisions.
Keywords: Manufacturing; Stock Returns; Structural Equation