Making decisions and consideration in stock

• Main Authors: Yueh-Yi Pan, 潘岳頤
• Other Authors: Wen-Shiung Lee
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/56089605220244766688

碩士 === 開南大學 === 企業與創業管理學系 === 97 === Making decisions and consideration in stock investing Abstract Making a good selection to stock investments is considered to be an important task for investors. However, within the stock selection process, most evaluations are qualitative. There are few papers using quantification. This paper, has, therefore, applied decision making trial and evaluation laboratory (DEMATEL)，analytic network process (ANP) and VlseKriterijumska Optimizacija IKompromisnoResenje (VIKOR) to evaluate stock selection criterion, which add a new perspective to the analysis of stock selection. Besides, there are a few papers using ANP and VIKOR in the field of finance, so this study attempts to fill this need. In this paper, a multicriteria decision-making method (MCDM) is used to rank alternative stocks in Taiwan, since most of the studies in stock selection decisions have been conducted in the western countries. In our study, ANP with three aspects and nine criteria is used to develop an evaluation hierarchy for stocks. Seven primary stocks in Taiwan are evaluated, including Mediatek, Motech Industries Inc, HTC, Cathy Financial Holdings, Huaku Constructio, China Steel, Taiwan Cement. The aspects include fundamental analysis, technical analysis, and institutional analysis. The criteria are risk, growth, profitability, operation, Relative Strength Index (RSI), Moving average (MA), Moving Averages Convergence Divergence (MACD), institutional investors, and trading volume. The alternatives are ranked by the VIKOR. Results indicated that institutional indicators are the most used criteria in Taiwan, and most of the financial experts in Taiwan have estimated institutional investors with the highest importance. In addition, the results also indicate that Mediatek ranks first of seven primary stocks in Taiwan. Explanations of our results and implications are discussed.