Impact of corporate performance on stock price predictions in the UAE markets: Neuro‐fuzzy model

Summary Predicting stock price remains one of the challenges for investors' investment strategies. This study helps with accurate prediction and the main factors affecting variations in stock prices. It applies an adaptive neuro‐fuzzy model on 58 listed firms from both the Abu Dhabi Securities...

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Bibliographic Details
Published in:Intelligent systems in accounting, finance & management finance & management, 2021-01, Vol.28 (1), p.52-71
Main Authors: Mohamed, Elfadil A., Ahmed, Ibrahim Elsiddig, Mehdi, Riyadh, Hussain, Hanan
Format: Article
Language:English
Subjects:
Investment policy
Investment strategy
neuro‐fuzzy model
Performance assessment
performance measures predictive power
Performance prediction
Stock exchanges
stock price predictions
Stock prices
UAE financial markets
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Summary:Summary Predicting stock price remains one of the challenges for investors' investment strategies. This study helps with accurate prediction and the main factors affecting variations in stock prices. It applies an adaptive neuro‐fuzzy model on 58 listed firms from both the Abu Dhabi Securities Exchange and the Dubai Financial Market for the period 2014–2018 to estimate the predictive power of corporate performance measures and their significance. After examining four performance predictors—return on asset (ROA), return on equity (ROE), earning per share (EPS), and profit margin (PM)—the study finds that ROE is the most significant predictor and ROA is the least. EPS is the most influential profitability measure and PM the least.
ISSN:1550-1949
2160-0074
DOI:10.1002/isaf.1484