Quantitative Analysis of Value Investment in Listed Chinese Banks during the COVID-19 Epidemic
Keywords:
Chinese listed banks, COVID-19, value investment, quantitative analysisAbstract
This research was conducted in order to explore the nexus between return on investment (ROI) from listed Chinese banks and proposed fundamental indicators documented in financial statements during the COVID-19 epidemic period. Hierarchical analysis was employed to test the hypotheses established by the dependent variable ROI and other independent factors including the attribute of enterprise (State-owned or not), price/earnings ratios (PE), earning per share (EPS) as well as Non-performing loan ratio (NPL). The results show that the nature of enterprise has no impact on ROI. However, PE and NPL are negatively associated with ROI, and EPS is positively related to ROI. The results are tested and analyzed for robustness.
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