Which fundamental factors proxy for share returns? : An application of the multi self-organising maps in share pricing
Li, Bob and Boo, Yee Ling 2012, Which fundamental factors proxy for share returns? : An application of the multi self-organising maps in share pricing, in Multidisciplinary computational intelligence techniques : applications in business, engineering, and medicine, Information Science Reference, Hershey Pa., pp.1-11.
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Title
Which fundamental factors proxy for share returns? : An application of the multi self-organising maps in share pricing
It is widely accepted that the presence of some of the firm’s attributes or characteristics attracting premiums in terms of average returns is pervasive and not restricted to a few individual markets. However, the way to derive these premiums by sorting firms based on their characteristics that are known associated with share returns is not without controversy. This chapter takes a different approach by adopting a novel Multi Self-Organising Maps to cluster shares first and then identify fundamental factors afterwards. It finds that firm’s size and book-to-market ratio attributes do have explanatory power over share average returns. There is also lack of evidence for other factors in explaining the share average returns.
ISBN
9781466618305 9781466618312 9781466618329
Language
eng
Field of Research
150201 Finance 080108 Neural, Evolutionary and Fuzzy Computation 080109 Pattern Recognition and Data Mining
Socio Economic Objective
970108 Expanding Knowledge in the Information and Computing Sciences