Forecasting corporate performance: VECM comparison with other time series models
Article Abstract:
A study was conducted to compare the ability of the Vector Error Correction Model (VECM) for forecasting corporate performance with that of the Auto-Regressive-Integrated-Moving-Average (ARIMA) and Generalized-Auto-Regressive-Conditional-Heteroskedasticity (GARCH) models. The three models were used to forecast the ex post changes in earning and stock prices of six large DOW companies. Results from four decades of data showed that the VECM is better a forecasting tool than the ARIMA and GARCH.
Publication Name: Studies in Economics and Finance
Subject: Economics
ISSN: 1086-7376
Year: 1998
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Capital investment and the profitability of fortune 500 industrials: 1971-1990
Article Abstract:
The degree of capital expenditure affects the profitability performance of Fortune 500 industrial firms. Companies belonging to top 50% of Fortune 500 were able to achieve increases in operating profits between 1981 to 1990 due to increased capital investment. On the other hand, companies belonging to the bottom half of Fortune 500 recorded declines in profitability brought about by reduction in the rate of capital expenditure.
Publication Name: Studies in Economics and Finance
Subject: Economics
ISSN: 1086-7376
Year: 1997
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Fortune's most admired firms: an investor's perspective
Article Abstract:
Stocks of Fortune magazine's most admired companies, such as IBM and Hewlett-Packard, offer favorable investment for future investors. Investors have the tendency to surpass the market by investing in the stocks of companies that are positively identified by Fortune magazine. Outperformance of stocks takes place in terms of raw returns, as well as after changes has been made in systematic and total risk.
Publication Name: Studies in Economics and Finance
Subject: Economics
ISSN: 1086-7376
Year: 1997
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