IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-441-9_14.html

Analysis of Financial Asset Pricing Model for Portfolio Investment based on Principal-Agent Theory Perspective

In: Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023)

Author

Listed:
  • Junhao Hu

    (Tsinghua University High School)

Abstract

If investors entering the securities market want to make rational investment decisions, they need to understand whether the current financial asset prices truly reflect the intrinsic value of the market economy, and the important discriminatory basis that can help investors invest accurately is the past theories of securities investment and financial pricing theory. The existing financial asset pricing models do not involve explicit investment variables, and therefore their ability to price financial assets is relatively limited. Based on the above research background, a financial asset pricing model for portfolio investment based on the principal-agent theory perspective is proposed. This paper takes the basic concepts of principal-agent theory as an entry point to study the trend of the economic system of portfolio investment in the general environment of market economy, and then derives the expression form of the financial asset pricing model of portfolio investment based on known indicators of financial asset variables. By analyzing the numerical statistical results of the investment variables of a certain A-share pricing model, it can be seen that when the price to book ratio index remains constant, the higher the valuation level of securities investment, the stronger the liquidity of financial assets. At this time, the derived pricing model can better reflect the change law of financial assets, thus helping investors to make rational securities investment decisions.

Suggested Citation

  • Junhao Hu, 2024. "Analysis of Financial Asset Pricing Model for Portfolio Investment based on Principal-Agent Theory Perspective," Advances in Economics, Business and Management Research, in: Peng Dou & Keying Zhang (ed.), Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023), pages 145-156, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-441-9_14
    DOI: 10.2991/978-94-6463-441-9_14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-441-9_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.