RESEARCH UPON THE UTILITY OF FUNDAMENTAL ANALYSIS IN STOCK SELECTION

Ioan-Ovidiu Spatacean () and Maria-Ioana Bologa
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Ioan-Ovidiu Spatacean: Faculty of Economics, Law and Administration, Finance and Accounting Department, Petru Maior University from Tirgu Mures

STUDIA UNIVERSITATIS PETRU MAIOR SERIES OECONOMICA, 2015, vol. 1, 109-134

Abstract: Fundamental analysis is an essential step in the selection and management of a portfolio of financial assets since by its specific instruments, it allows the accumulation of valuable information regarding the companies in which an investor, institutional or retail, intends to place his/her financial resources. This article discusses the usefulness of fundamental analysis tools in the selection of a portfolio of shares. The authors hypothesized that a portfolio selected through fundamental analysis on the basis of financial performance, should give investors reasons for satisfaction through higher yields in comparison with a benchmark (stock index). Whatever represents the opposite situation, in our opinion, is an anomaly. Research efforts are directed towards assessing the correlation between the quality of the portfolio selected on fundamental analysis and the market performance, subsequently confirmed or denied.

Keywords: fundamental analysis; stock selection; financial assets; portfolio performance; anomaly (search for similar items in EconPapers)
JEL-codes: G (search for similar items in EconPapers)
Date: 2015
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