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

Amin Falah

Business and Economic Horizons (BEH), 2015, vol. 11, issue 01, 10

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.

Keywords: Financial Economics; Marketing (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pdcbeh:246140

DOI: 10.22004/ag.econ.246140

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