Business Performance Analysis of Listed Companies under the Stock Dividends Behavior: An Empirical Approach Based on Factor Analysis Model

This paper analyzes business performance of A-share listed companies issued stock dividend using factor analysis model (FAM). The FAM method generates weights through mathematical transformation and enables us to avoid the subjectivity of giving weights. It is found that the main factors that affect the business operating performance of listed companies are six variables, including operating capacity, growth capacity and cash flows. Also, it is indicated that the main weights of business operating performance are the expansion of capacity, profitability and solvency. Our findings imply that investors should analyze the multi-dimensional factors of company business performance while forming up a portfolio and making investment decision.