FUNDAMENTAL FINANCIAL CHARACTERISTICS OF THOSE FIRMS IDENTIFIED BY VALUE LINE WITH THE HIGHEST TECHNICAL RATINGS IN A PERIOD OF ECOMOMIC RECESSION AND FINANCIAL MARKET TURMOIL

Previous studies that examined the fundamental financial characteristics that determine the value of firms identified as having the highest technical ratings have ignored the macroeconomic background and conditions in the financial markets at the time those high ratings were awarded. This study exam...

Full description

Saved in:
Bibliographic Details
Published in:American journal of business research (Cary, N.C.) N.C.), 2013-11, Vol.6 (1), p.19
Main Authors: Payne, Bruce C, Tyler, Michael L, Daghestani, Adnan
Format: Article
Language:English
Subjects:
Discriminant analysis
Efficient markets
Hypotheses
Investments
Liability insurance
Macroeconomics
Power
Ratings & rankings
Recessions
Securities markets
Studies
Variables
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Previous studies that examined the fundamental financial characteristics that determine the value of firms identified as having the highest technical ratings have ignored the macroeconomic background and conditions in the financial markets at the time those high ratings were awarded. This study examines the fundamental financial characteristics of those companies that have been identified by Value Line as having the highest technical ratings in their database during the year 2008. That year has been described as the worst economic environment since the great depression of the 1930's. Those firms are compared with firms chosen at random to determine whether the firms with the high technical ratings have a unique fundamental profile, and by implication a heretofore unknown relationship between the technical and fundamental analysis. If the study can be validated to exclude any bias, the model may identify firms that will attain high technical ratings in future economic downturns. This would have implications for technicians, and fundamental analysts alike. As in previous studies of this type multiple discriminant analysis is used to separate and identify the characteristics of the two groups of firms. [PUBLICATION ABSTRACT]
ISSN:1934-6484