IDEAS home Printed from https://ideas.repec.org/a/pdc/jrnbeh/v11y2015i1p41-50.html
   My bibliography  Save this article

A novel application of grey principal component analysis to determine stockholder’s approach towards financial ratios

Author

Listed:
  • Amin Babaei Falah
  • Morteza Sardari

Abstract

In this paper, we try to determine the stockholder’s desire approach to financial ratios using a combination of principal component analysis and grey theory.Grey Principal Component Analysis (GPCA)handles poor information reduces dimensions of variables and gives an appropriate score to each company. Here we employ GPCA to identify more appropriate strategies of normalizing data curves to reduce the discrepancy between the GPCA-ranking and return-ranking, hence determining the approaches of stockholders of listed pharmaceutical firms of Tehran Stock Exchange (TSE) regarding financial ratios.

Suggested Citation

  • Amin Babaei Falah & Morteza Sardari, 2015. "A novel application of grey principal component analysis to determine stockholder’s approach towards financial ratios," Business and Economic Horizons (BEH), Prague Development Center, vol. 11(1), pages 41-50, April.
  • Handle: RePEc:pdc:jrnbeh:v:11:y:2015:i:1:p:41-50
    as

    Download full text from publisher

    File URL: https://academicpublishingplatforms.com/downloads/pdfs/beh/volume17/201606301117_04_BEH_Vol11_Issue1_2015_Falah_and_Sardari_Grey_principal_component_analysis_stockholder_approach_pp.41-50.pdf
    Download Restriction: no

    File URL: https://academicpublishingplatforms.com/article.php?journal=BEH&number=17&article=2144
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bruno Ricca & Massimiliano Ferrara & Salvatore Loprevite, 2023. "Searching for an effective accounting-based score of firm performance: a comparative study between different synthesis techniques," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3575-3602, August.

    More about this item

    Keywords

    Performance evaluation; grey principal component analysis; MCDM; pharmaceutical industry; market desire;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

    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:pdc:jrnbeh:v:11:y:2015:i:1:p:41-50. 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: Jaroslav Holecek (email available below). General contact details of provider: https://edirc.repec.org/data/pradecz.html .

    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.