Application of multi-criteria decision analysis for investment strategies in the Indian equity market

Majumdar, Sudipa; Puthiya, Rashita; Bendarkar, Nandan

doi:10.21511/imfi.18(3).2021.04

Cited by 2 publications

(2 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Gupta et al [45] developed a hybrid ranking technique to rank the sectoral stock indices of India's National Stock Exchange. Majumdar et al [46] used MCDM to evaluate investment options on the Indian equity market. Mills et al [47] presented a hybrid MCDM method for asset allocation in the Shanghai Stock Exchange.…”

Section: Applications Of Mcdm Methods In the Stock Market Contextmentioning

confidence: 99%

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Alsanousi,

Alqahtani,

Makki

et al. 2024

Information

View full text Add to dashboard Cite

This study presents a hybrid multicriteria decision-making approach for evaluating stocks in the Saudi Stock Market. The objective is to provide investors and stakeholders with a robust evaluation methodology to inform their investment decisions. With a market value of USD 2.89 trillion dollars in September 2022, the Saudi Stock Market is of significant importance for the country’s economy. However, navigating the complexities of stock market performance poses investment challenges. This study employs the best–worst method and the technique for order preference by similarity to identify an ideal solution to address these challenges. Utilizing data from the Saudi Stock Market (Tadawul), this study evaluates stock performance based on financial criteria, including return on equity, return on assets, net profit margin, and asset turnover. The findings reveal valuable insights, particularly in the banking sector, which exhibited the highest net profit margin ratios among sectors. The hybrid multicriteria decision-making-based approach enhances investment decisions. This research provides a foundation for future investigations, facilitating a deeper exploration and analysis of additional aspects of the Saudi Stock Market’s performance. The developed methodology and findings have implications for investors and stakeholders, aiding their investment decisions and maximizing returns.

show abstract

Section: Applications Of Mcdm Methods In the Stock Market Contextmentioning

confidence: 99%

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Alsanousi,

Alqahtani,

Makki

et al. 2024

Information

View full text Add to dashboard Cite

show abstract

“…Bilbao-Terol et al (2016) applied goal programming with fuzzy hierarchies as a guide to determine feasible investment opportunities when faced with two criteria types: sustainability and financial performance. Majumdar et al (2021) applied value-based multi-criteria decision analysis and value averaging to identify the best stock in the Indian investment market based on India's market capitalization and performance. More recently, Baydaş et al (2022) No study of portfolio stock selection using MCDM methods has mentioned using BWM and RAPS in an integrated manner.…”

Section: Review Of Mcdm Use In Financial Sector Studiesmentioning

confidence: 99%

BWM—RAPS Approach for Evaluating and Ranking Banking Sector Companies Based on Their Financial Indicators in the Saudi Stock Market

Alamoudi

Bafail

2022

JRFM

View full text Add to dashboard Cite

Seeking the greatest possible return on long-term investments, investors naturally seek equities of the best-performing companies that fit their investment timeframe. Long-term investment success rests on selecting the best companies, which requires a challenging analysis reviewing voluminous and often-conflicting data about companies and understanding broader economic forecasts. This paper undertook a case study deployment of MCDM methodologies to examine the suitability and effectiveness of Multi-Criteria Decision-Making (MCDM) methods in assessing and ranking the best stocks for portfolio inclusion. A combination of MCDM techniques comprised a methodology to evaluate and rank Saudi Arabian banking stocks based on their performance in the Saudi stock market. Specifically, the paper combined the Best–Worst Method (BWM) and Ranking Alternatives by Perimeter Similarity (RAPS) for the analysis. BWM calculated each criterion’s relative impact (weight) in selecting a stock. RAPS then used the weighting to rank the results of the investigation. The study’s findings yielded encouraging results regarding using an integrated MCDM technique to derive optimal banking sector securities in the expansive Saudi stock market. The novel application of the robust RAPS technique combined with BWM encourages continued and increased use of MCDM techniques in financial matters and broader application in evaluating equities.

show abstract

Application of multi-criteria decision analysis for investment strategies in the Indian equity market

Cited by 2 publications

References 20 publications

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

BWM—RAPS Approach for Evaluating and Ranking Banking Sector Companies Based on Their Financial Indicators in the Saudi Stock Market

Contact Info

Product

Resources

About