The performance of listed companies has five major impacts on their stocks:

1. Stock price fluctuations

Company performance is one of the main factors affecting stock price fluctuations. Strong performance usually drives stock prices up, while poor performance may lead to price declines.

2. Investor sentiment

Company performance affects investor sentiment. Strong performance can boost investor confidence, encouraging them to hold or increase their positions, while poor performance may trigger panic selling and price drops.

3. Market performance

Company performance influences its market standing. High-performing companies may attract more investor interest, enhancing their market position and influence, while underperformers may lose investor confidence and see their market position weaken.

4. Capital flows

Company performance also affects capital movements. Strong performers may attract more capital inflows, supporting business expansion and development, while weak performers may face capital outflows, threatening financial stability.

5. Financing capability

Company performance impacts financing ability. High-performing companies typically find it easier to secure financing, including debt and equity, while underperformers may face financing challenges, increasing costs and risks.