IDEAS home Printed from https://ideas.repec.org/a/kap/apfinm/v30y2023i4d10.1007_s10690-022-09394-4.html
   My bibliography  Save this article

An ISM and MICMAC Approach for Modelling the Contributors of Multibagger Stocks

Author

Listed:
  • Ajay Chauhan

    (Universal Business School)

  • Swati Gupta

    (Panjab University, Chandigarh)

  • Sanjay Gupta

    (Panjab University, Chandigarh)

Abstract

The purpose of this study is to explore the factors affecting the selection of multibagger stocks in the securities market. Further, the study aims to develop a model using interpretive structural modeling (ISM). Thereafter, the driving and dependence power of factors was found using matriced impact croises multiplication appliquee a un classement (MICMAC). A group of financial analysts and academic experts having experience in dealing in the Indian securities market were consulted and interpretive structural modelling (ISM) is adopted to develop the contextual relationship among various factors for each dimension of multibagger stocks selection. Further, to identify the driving and the dependence power of factors, the results of the ISM are used as an input to MICMAC analysis. The results of the study indicate the large potential market (C11), visionary leader (C13), unique business model (C6), understanding of the sector (C1), and promoter and management capability (C2) are the dominant factors. MICMAC analysis indicates that driving, dependent and linkage factors are 4, 5, and 4 respectively. The factors obtained for ISM model development and MICMAC analysis are based on the experts’ opinions. As it is a subjective judgment, there are chances of biasness on basis of personal opinions. A questionnaire survey can be conducted to gather viewpoints on these factors from more financial experts and portfolio consultants. The study has been executed in discussion with financial analysts and academic experts having experience in dealing in the securities market. Hence, derived results have practical validity. The securities market is quite volatile in nature and the right choice of multibaggers may prove to be wealth creators for the general public. Investors may look for the derived factors for investing their savings into profitable channels by picking up those stocks which may prove to be multibaggers in near future. The development of a model for the identification of factors affecting the choice of multibaggers in the securities market is the original contribution of the authors.

Suggested Citation

  • Ajay Chauhan & Swati Gupta & Sanjay Gupta, 2023. "An ISM and MICMAC Approach for Modelling the Contributors of Multibagger Stocks," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(4), pages 677-699, December.
    • Handle: RePEc:kap:apfinm:v:30:y:2023:i:4:d:10.1007_s10690-022-09394-4
    DOI: 10.1007/s10690-022-09394-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10690-022-09394-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10690-022-09394-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Fama, Eugene F & French, Kenneth R, 1992. "The Cross-Section of Expected Stock Returns," Journal of Finance, American Finance Association, vol. 47(2), pages 427-465, June.
    2. Lakonishok, Josef & Shleifer, Andrei & Vishny, Robert W, 1994. "Contrarian Investment, Extrapolation, and Risk," Journal of Finance, American Finance Association, vol. 49(5), pages 1541-1578, December.
    3. V. Mani & Rajat Agrawal & Vinay Sharma, 2016. "Impediments to Social Sustainability Adoption in the Supply Chain: An ISM and MICMAC Analysis in Indian Manufacturing Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 17(2), pages 135-156, June.
    4. Rajesh K. Singh & Suresh K. Garg & S.G. Deshmukh, 2007. "Interpretive structural modelling of factors for improving competitiveness of SMEs," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 2(4), pages 423-440.
    5. Cécile Churet & Robert G. Eccles, 2014. "Integrated Reporting, Quality of Management, and Financial Performance," Journal of Applied Corporate Finance, Morgan Stanley, vol. 26(1), pages 56-64, March.
    6. Tilak Raj & Ravi Shankar & Mohammed Suhaib, 2009. "An ISM approach to analyse interaction between barriers of transition to Flexible Manufacturing System," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 16(4), pages 417-438.
    7. Engelhardt, Nils & Krause, Miguel & Neukirchen, Daniel & Posch, Peter N., 2021. "Trust and stock market volatility during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 38(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harrison Hong & Terence Lim & Jeremy C. Stein, 2000. "Bad News Travels Slowly: Size, Analyst Coverage, and the Profitability of Momentum Strategies," Journal of Finance, American Finance Association, vol. 55(1), pages 265-295, February.
    2. Eero Pätäri & Timo Leivo, 2017. "A Closer Look At Value Premium: Literature Review And Synthesis," Journal of Economic Surveys, Wiley Blackwell, vol. 31(1), pages 79-168, February.
    3. Tim Brailsford & Clive Gaunt & Michael A O’Brien, 2012. "Size and book-to-market factors in Australia," Australian Journal of Management, Australian School of Business, vol. 37(2), pages 261-281, August.
    4. Luo, Bing, 2019. "Effects of auditor-provided tax services on book-tax differences and on investors' mispricing of book-tax differences," Advances in accounting, Elsevier, vol. 47(C).
    5. Paulo Alves, 2013. "The Fama French Model or the Capital Asset Pricing Model: International Evidence," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(2), pages 79-89.
    6. Stefano DellaVigna & Joshua M. Pollet, 2005. "Attention, Demographics, and the Stock Market," NBER Working Papers 11211, National Bureau of Economic Research, Inc.
    7. Long, Huaigang & Zhu, Yanjian & Chen, Lifang & Jiang, Yuexiang, 2019. "Tail risk and expected stock returns around the world," Pacific-Basin Finance Journal, Elsevier, vol. 56(C), pages 162-178.
    8. Zura Kakushadze, 2014. "4-Factor Model for Overnight Returns," Papers 1410.5513, arXiv.org, revised Jun 2015.
    9. Kirby, Chris, 2019. "The value premium and expected business conditions," Finance Research Letters, Elsevier, vol. 30(C), pages 360-366.
    10. Cakici, Nusret & Tang, Yi & Yan, An, 2016. "Do the size, value, and momentum factors drive stock returns in emerging markets?," Journal of International Money and Finance, Elsevier, vol. 69(C), pages 179-204.
    11. Stephen J. Brown & William N. Goetzmann & Mark Grinblatt, 1998. "Positive Portfolio Factors," NBER Working Papers 6412, National Bureau of Economic Research, Inc.
    12. Brav, Alon & Geczy, Christopher & Gompers, Paul A., 2000. "Is the abnormal return following equity issuances anomalous?," Journal of Financial Economics, Elsevier, vol. 56(2), pages 209-249, May.
    13. La Porta, Rafael, et al, 1997. "Good News for Value Stocks: Further Evidence on Market Efficiency," Journal of Finance, American Finance Association, vol. 52(2), pages 859-874, June.
    14. Linnenluecke, Martina K. & Chen, Xiaoyan & Ling, Xin & Smith, Tom & Zhu, Yushu, 2017. "Research in finance: A review of influential publications and a research agenda," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 188-199.
    15. Pätäri, Eero & Karell, Ville & Luukka, Pasi & Yeomans, Julian S, 2018. "Comparison of the multicriteria decision-making methods for equity portfolio selection: The U.S. evidence," European Journal of Operational Research, Elsevier, vol. 265(2), pages 655-672.
    16. Connor, Gregory & Linton, Oliver, 2007. "Semiparametric estimation of a characteristic-based factor model of common stock returns," Journal of Empirical Finance, Elsevier, vol. 14(5), pages 694-717, December.
    17. D. L. Wilcox & T. J. Gebbie, 2013. "On pricing kernels, information and risk," Papers 1310.4067, arXiv.org, revised Oct 2013.
    18. Arati Kale & Devendra Kale & Sriram Villupuram, 2024. "Decomposition of risk for small size and low book-to-market stocks," Journal of Asset Management, Palgrave Macmillan, vol. 25(1), pages 96-112, February.
    19. Blackburn, Douglas W. & Cakici, Nusret, 2017. "Overreaction and the cross-section of returns: International evidence," Journal of Empirical Finance, Elsevier, vol. 42(C), pages 1-14.
    20. Guo, Hui, 2006. "Time-varying risk premia and the cross section of stock returns," Journal of Banking & Finance, Elsevier, vol. 30(7), pages 2087-2107, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G4 - Financial Economics - - Behavioral Finance

    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:kap:apfinm:v:30:y:2023:i:4:d:10.1007_s10690-022-09394-4. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.