Financial Indicator System of Banking Listed Companies Based on Factor Analysis

Mei He

Abstract: The healthy development of commercial banks determines the stable operation of the national economy. Measuring the financial performance of listed companies in the banking industry can provide a certain reference for rational investment of investors. However, there are many financial indicators for listed companies in the banking industry, so it is particularly important to establish an effective evaluation index system for financial performance of listed companies in the banking sector. Therefore, this paper selects 8 financial indicators of 22 listed banks, and comprehensively uses exploratory factor analysis and confirmatory factor analysis to study the financial performance indicators of China's banking listed companies. The research shows that we can effectively measure the financial performance of China's banking industry from three dimensions: profitability, value per share and solvency. This provides a certain reference value for both investors and bank managers.

Keywords: commercial bank, financial performance, exploratory factor analysis, confirmatory factor analysis

How to Cite?: Mei He, "Financial Indicator System of Banking Listed Companies Based on Factor Analysis", Volume 8 Issue 8, August 2019, International Journal of Science and Research (IJSR), Pages: 1195-1199, https://www.ijsr.net/getabstract.php?paperid=11081903, DOI: https://dx.doi.org/10.21275/11081903