Evaluation of Bank of China Financial Performance Based on Prospect Theory

Abstract

There are many methods to evaluate the company's operating ability, specifically, the financial index rating and comprehensive evaluation, while ordinary investors' evaluation of the company's operating performance is more focused on the financial data and financial indicators published by the company. At present, most of the research papers focus on building appropriate indicators, integrating indicators with mathematical logic, forming the company's comprehensive score, ranking and selecting the best. By adding the psychological factors of investors, the index is further reconstructed to obtain the comprehensive score of Bank of China. The results show that investors are not willing to invest in listed companies of Bank of China. At the same time, the results are corroborated by objective data such as share of stock turnover, turnover rate and dividend rate. With the help of the research results, investors can effectively guide stock selection in the market and obtain a stable rate of return.