A multicriteria hierarchical approach for portfolio selection in a stock exchange

2021 ◽  
Vol 40 (2) ◽  
pp. 1945-1955
Author(s):  
Maria Bernal ◽  
Pavel Anselmo Alvarez ◽  
Manuel Muñoz ◽  
Ernesto Leon-Castro ◽  
Diego Alonso Gastelum-Chavira
Keyword(s):  
Decision Maker ◽  
Portfolio Selection ◽  
Stock Exchange ◽  
Multiple Criteria ◽  
Financial Ratios ◽  
Hierarchical Approach

The objective of the paper is to present a multiple criteria hierarchical process (MCHP) approach for portfolio selection in a stock exchange. One of the problems that investors usually face is which stock should be included in the portfolio. This paper helps investors answer that question, and the paper presents an MCHP approach using different criteria based on financial ratios that the decision maker (in this case, the investor) will give different weights to make a portfolio based on her preferences; different importance is given to each criterion. An example using the Mexican Stock Exchange is presented.

PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN EARNING PER SHARE TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2010 – 2019

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Susi Lusiana
Keyword(s):  
Data Collection ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Ratios ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Return On Equity ◽  
Earnings Per Share

The study of this research is to determine the effect of returning shares in manufacturing companies. This study uses the financial ratios contained in the company's financial statements. The financial ratios used in this study are the current ratio, return on equity, and earnings per share to stock returns in manufacturing companies listed on the Indonesian stock exchange in 2010-2019. This type of research used in this research is quantitative and the analytical method used is purposive sampling using SPSS 21 as many 10 manufacturing companies in the food, beverage, textile, rubber goods (tires), fisheries, and agriculture sectors. Data collection techniques are used by retrieving data through the website www.idx.co.id. The results showed that Current Ratio (CR) has a positive and significant effect on Stock Returns, Return On Equity (ROE) has a positive and significant effect on Stock Returns, and Earning Per Share (EPS) has a negative and significant effect on Stock Return.

The Determinants of Financial Ratio Disclosures and Quality: Evidence from an Emerging market

2015 ◽  
Vol 1 (1) ◽  
pp. 188 ◽  
Author(s):  
Ben k. Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Ratios ◽  
Annual Reports ◽  
Executive Directors ◽  
Financial Ratio

This study investigated the influence of firm-specific characteristics which include proportion of Non-Executive Directors, ownership concentration, firm size, profitability, debt equity ratio, liquidity and leverage on the extent and quality of financial ratios disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the 2012 financial statements of  the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the extent of financial ratio disclosure level, mean of 62.78%, indicate that most of the firms listed on the Ghana Stock Exchange did not overwhelmingly disclose such ratios in their annual reports.  The results of the low quality of financial ratio disclosure mean of 6.64% indicate that the disclosures failed woefully to meet the International Accounting Standards Board's qualitative characteristics of relevance, reliability, comparability and understandability.The results of the multiple regression analysis show that leverage and return on investment are associated on a statistically significant level as far as the extent of financial ratio disclosure is concerned. Board ownership concentration and proportion of (independent) non-executive directors, on the other hand were found to be statistically associated with the quality of financial ratio disclosed. There is a significant negative relationship between ownership concentration and the quality of financial ratio disclosure.  This means that under a higher level of ownership concentration less quality financial ratios are disclosed. The findings also show that there is a significant positive relationship between board composition (proportion of non-executive directors) and the quality of financial ratio disclosure.  JEL CLASSIFICATION: G3, M1, M2, M4.

scholarly journals ANALISIS FINANCIAL DISTRESS PADA PT TUNAS BARU LAMPUNG TBK DI BURSA EFEK INDONESIA

2017 ◽  
Vol 13 (2) ◽  
pp. 129-141
Author(s):  
Umi Ambarwati ◽  
Sudarwati Sudarwati ◽  
Rochmi Widayanti
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Financial Ratios ◽  
Z Score ◽  
Effective Strategies ◽  
Operational Costs ◽  
Score Method

This article aims to analyze the health of the company in PT Tunas Baru Lampung TBK in Indonesia Stock Exchange. The data comes from PT Tunas Baru Lampung TBK in 2013-2015. The methods used are Altman Z-Score, Springate, Zmijewski and Fulmer methods. The results of the study show that there are differences in predicted bankruptcy results between the Altman Z-score method, Springate, Zmijewski and Fulmer. This is due to differences in the use of financial ratios and criteria bankruptcy between Altman Z-score, Springate, Zmijewski and Fulmer. For that company is expected to increase sales, perform effective strategies, reduce operational costs to be more efesian so that companies can meet the company's health criteria.   Artikel ini bertujuan untuk menganalisis kesehatan perusahaan pada PT Tunas Baru Lampung TBK di Bursa Efek Indonesia. Data berasal dari PT Tunas Baru Lampung TBK pada tahun 2013-2015. Metode yang digunakan adalah metode Altman Z-Score, Springate, Zmijewski dan Fulmer. Hasil penelitian menunjukkan adanya perbedaan hasil prediksi kebangkrutan antara metode Altman Z-score, Springate, Zmijewski dan Fulmer. Hal ini karena adanya perbedaan penggunaan rasio keuangan dan kriteria kebangkrutan antara Altman Z-score, Springate, Zmijewski dan Fulmer. Untuk itu perusahaan diharapkan meningkatkan penjualan, melakukan strategi yang efektif, menekan biaya operasional agar lebih efesian sehingga perusahaan dapat memenuhi kriteria kesehatan perusahaan.

scholarly journals Performance Analysis of Investment Portfolio Strategy Using Warren Buffett, Benjamin Graham, and Peter Lynch Method in Indonesia Stock Exchange

2021 ◽  
Vol 6 (4) ◽  
pp. 394-401
Author(s):  
Ganda Hengky Wirawan ◽  
Erman Sumirat
Keyword(s):  
Performance Analysis ◽  
Stock Exchange ◽  
Screening Method ◽  
Financial Ratios ◽  
Fundamental Analysis ◽  
Investment Portfolio ◽  
Value Investing ◽  
Back Testing ◽  
Portfolio Strategy ◽  
The World

Warren Buffett, Benjamin Graham, and Peter Lynch are three (3) famous investors’ gurus in the world that have already proved that they can outperform the market by value investing method. Method that they are using are based on fundamental analysis and they screen the company’s stock based on several key financial ratios and criteria that they found important in analyzing the company. In this project, Author conducted research and study to find out the applicability of the screening method made by the gurus in Indonesia Stock Exchange (IDX) using equally weighted method, back testing it in May 2012 until December 2020 periods, and evaluate the performance of each type of portfolios made using Sharpe ratio, Treynor ratio, and Jensen’s alpha. The result of this project is all type of these portfolios are having positive risk adjusted returns. Peter Lynch type of portfolio is having the highest annualized return 24.04 % or 613 % cumulative return, while Warren Buffett and Benjamin Graham are having annualized returns 9.42 % (or cumulative return 216.48%) and 8.3 % (or cumulative return 198.27%) respectively. Moreover, Author found that those three types of portfolios are having beta (β) nearly the same with one (1) means that the portfolios are having same risk with its systematic (market) risk.

scholarly journals FAKTOR PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN JAKARTA ISLAMIC INDEX (JII)

2021 ◽  
Vol 12 (1) ◽  
pp. 42-55
Author(s):  
Nadiah Ayu Salsabila ◽  
Titis Miranti
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Profit Margin ◽  
Stock Index ◽  
Financial Ratios ◽  
Analysis Model ◽  
Current Ratio ◽  
Net Profit ◽  
Equity Ratio

Jakarta Islamic Index is a stock index in the IDX that can use as an alternative In Islamic investment. In choosing an investment object in Islamic stocks, it necessary to pay attention to the financial ratios and stock prices of companies. The purpose of this study was to determine the effect of financial ratios on stock prices on companies listed on the Jakarta Islamic Index (JII). The type of this research is quantitative. The population of 56 companies registered on the Jakarta Islamic Index (JII) for the 2012-2018 period with a sample of 11 companies. The analysis model use panel data regression using Eviews software. The type of data uses secondary data accessed through the Indonesia Stock Exchange (IDX) website. The results showed that earning per share variable has a significant effect on stock prices. While the current ratio, debt to equity ratio, total assets turnover and net profit margin variables have no significant impact on stock prices. Simultaneously variables of current ratio, debt to equity ratio, total assets turnover, net profit margin and earning per share have significant effects on stock prices. The contribution of this research can use as a reference for companies to pay attention to financial ratios that affect stock prices.

Analisis Ratio Keuangan terhadap Perubahan Kinerja pada Perusahaan di Industri Food and Baverages yang Terdaftar pada BEJ

2005 ◽  
Vol 1 (2) ◽  
pp. 104
Author(s):  
DIAN MERIEWATY ◽  
ASTUTI YULI SEIYANI
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Ratios ◽  
Future Earnings ◽  
Financial Condition ◽  
Total Capital ◽  
Future Earning ◽  
The Future ◽  
And Performance

Financial statements users need financial informotion of companies to analyze their financial condition and performance. Finacial rotios are useful rneasares for explaning the future earning changes. The study focuses on the usefulness of ftnancial ratios in explaning future eamings.The objective of the study is to empirically examine whether financial statement based tinancial ratios hove ability for explaning future earnings. Data in this study were in food and beverages firms listed on the Jaknrta Stock Exchange. Regression analysis were used in testing the ability financial ratios for explaning changes. The multicollinearity test shows that there is no assosiation between independent variables, indicating multieollinearity is not a seriaus problem. The heteroscedasticity test shows that voriances of disturbances are constant for all observation in independentt variables. Therefore heteroscedasticity is not a problem. The empiricolly result showed that, financial ratios in/luences the futureearnings changes for earning after tax are total debt to total capital assets, total assets turnover, and return on investment. Among those sevent financial ratios that are significant influences the future earnings changes for operating prortt is current ratio.Keywords : Financial Ratios, Performance changes of firms, significantlyinfluence.

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