PREDICTION OF STOCK PERFORMANCE IN INDIAN STOCK MARKET USING LOGISTIC REGRESSION
International Journal of Business and Information
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Title |
PREDICTION OF STOCK PERFORMANCE IN INDIAN STOCK MARKET USING LOGISTIC REGRESSION
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Creator |
Dutta, Avijan
Bandopadhyay, Gautam Sengupta, Suchismita |
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Description |
The authors use logistic regression (LR) and various financial ratios as independent variables to investigate indicators that significantly affect the performance of stocks actively traded on the Indian stock market. The study sample consists of the ratios of 30 large market capitalization companies over afour-year period. The study identifies and examines eight financial ratios that can classify the companies up to a 74.6% level of accuracy into two categories –“good” or “poor” – based on their rate of return. The paper asserts that the modeldeveloped can enhance an investor's stock price forecasting ability. Macroecomonic variables, which also can influence the share price, were not taken into account, however. The paper dicusses the practical implications of using the LRmethod to predict the probability of good stock performance. The authors state that the model can be used by investors, fund managers, and investment companies to enhance their abilty to select out-performing stocks.
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Publisher |
International Business Academics Consortium
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Date |
2015-11-14
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
https://ijbi.org/ijbi/article/view/68
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Source |
International Journal of Business and Information; Vol 7 No 1 (2012)
2520-0151 1728-8673 |
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Language |
eng
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Relation |
https://ijbi.org/ijbi/article/view/68/74
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Rights |
Copyright (c) 2015 International Journal of Business and Information
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