Decision Support Systems - Special issue: Data mining for financial decision making
Combined MCDM techniques for exploring stock selection based on Gordon model
Expert Systems with Applications: An International Journal
Developing a hybrid multi-criteria model for selection of outsourcing providers
Expert Systems with Applications: An International Journal
Combined DEMATEL technique with a novel MCDM model for exploring portfolio selection based on CAPM
Expert Systems with Applications: An International Journal
Application of type-2 neuro-fuzzy modeling in stock price prediction
Applied Soft Computing
Exploring smart phone improvements based on a hybrid MCDM model
Expert Systems with Applications: An International Journal
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This study proposes a multiple attributes decision making (MADM) method for solving glamor stock selection problem based on fundamental analysis. Traditional analyzes rely on choosing key financial ratios in making comparison, or by observing the trends of change in various financial variables (also termed as criteria or signals in this study). However, most of the criteria for stock selection have inter-dependent/interactive characteristics. In practice, investors often have to make compromising decisions when target stocks indicate conflicting performance outcomes in different criteria. Traditional methods have difficulty in making decision while facing inter-dependent criteria and compromise alternatives. Thus, this study proposes a combined MADM method to retrieve financial experts' knowledge for glamor stock selection. The proposed method not only helps to identify the ideal glamor stock, but the pertaining insights may also be used for the management teams of glamor stocks to prioritize their improvement plans. In addition, this study provides an empirical case in analyzing five glamor stocks of semiconductor industry in Taiwan. The result indicates that the proposed method for glamor stock selection is effective and provides meaningful implications for investors and management teams to refer. The selected top ranking stock consistently outperformed the other four glamor stocks in 32month and 44month holding periods from May 2009 to December 2012 with statistical significance, which indicated the effectiveness of the proposed model.