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

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.


Issue Date:
2015
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/246140
Published in:
Business and Economic Horizons, Volume 11, Issue 1
Business and Economic Horizons
Page range:
41-50
Total Pages:
10
JEL Codes:
C21; G10; L65




 Record created 2017-04-01, last modified 2017-08-29

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