The use of F.MCDM Combined to Improve the Performance of Stock Selection In the Stock Exchange (Case Study: Cement Industry)

Subject Areas : Financial engineering

zohreh zia ¹ , Zahra Pourzamani ²

1 - Master of Science of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor, Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, ir

Received: 2019-02-19 Accepted : 2019-03-03 Published : 2019-03-21

Keywords: brand, Stock Selection, Stock, Fuzzy DEMATEL, Fuzzy Network Analysis Process,

Abstract :

The goal of any investor in the stock exchange is is to maximize returns with stock selection reasonably. In fact, the main concern of investors in the stock exchange is the stock selection or portfolio that are appropriate in profitability. The issue of stock selection involves creating a portfolio that maximize the utility of the investor. Therefore, in this study was investigated the use of F.MCDM combined to improve the performance of stock selection in the stock exchange in Cement Industry. The population of audit organization consisted of the experts of the study area and fully aware of the stocks who were selected through the convenience judgmental sampling in the two groups. In the first group, there were 20 top managers and senior experts of the organization who were chosen to localize the model and due to the specialized nature of the subject and the limitations to identify the experts, and in the second group, there were 6 experts as a statistical sample. It is a analytical and field study and an applied one regarding target. For this purpose, first the criteria identified by studying the scientific literature, and their validity was confirmed by university professors. The results are based on the fuzzy DEMATEL method indicated that "risk" is regarded as the most influential and "profitability" as the most impressible factor. Also, the results of the Fuzzy Network process analysis technique demonstrated that profitability is considered as the main criterion in improving the performance of stock selection in the stock exchange, especially in the cement industry, and factors such as market cluster, growth rate and risk factor are ranked respectively in the next. Eventually, based on the results obtained, some suggestions have been presented for managers and experts in the stock exchange.