Research on information fusion of security analysts’ stock recommendations based on two-dimensional D-S evidence theory

Zhimin Li, Weidong Zhu, Yong Wu and Zihao Wu

The North American Journal of Economics and Finance, 2024, vol. 74, issue C

Abstract: Security analysts play a vital role as an information intermediary in the stock market. Their stock recommendations are important references for investors. The efficiency of investment decision-making could be improved by judging the reliability of stock recommendations based on analyst characteristics and fusing the recommendations. We propose an information fusion method for security analysts’ stock recommendations based on two-dimensional Dempster-Shafer (D-S) evidence theory, which comprehensively considers the external and internal characteristics of analysts. The characteristics of analysts are used to measure the reliability of the stock recommendations and modify the evidence, then the D-S fusion rule is used for evidence fusion. Compared with the forecast results of statistical methods and machine learning methods, the two-dimensional D-S evidence theory model we proposed has a higher forecast accuracy, which effectively improves the information efficiency of the stock market and helps investors to make decisions efficiently and scientifically.

Keywords: Security analyst; Stock recommendation; Information fusion; D-S evidence theory (search for similar items in EconPapers)
JEL-codes: G14 G17 G41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062940824001864
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:74:y:2024:i:c:s1062940824001864

DOI: 10.1016/j.najef.2024.102261

Access Statistics for this article

The North American Journal of Economics and Finance is currently edited by Hamid Beladi

More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().