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

Elfadil A. Mohamed; Ibrahim Elsiddig Ahmed; Riyadh Mehdi; Hanan Hussain

doi:10.1002/isaf.1484

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

Elfadil A. Mohamed
, Ibrahim Elsiddig Ahmed
, Riyadh Mehdi
, Hanan Hussain

Ajman University

Research output: Contribution to journal › Article › peer-review

20 Scopus citations

Abstract

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.

Original language	English
Pages (from-to)	52-71
Number of pages	20
Journal	Intelligent Systems in Accounting, Finance and Management
Volume	28
Issue number	1
DOIs	https://doi.org/10.1002/isaf.1484
State	Published - 1 Jan 2021

Keywords

UAE financial markets
neuro-fuzzy model
performance measures predictive power
stock price predictions

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10.1002/isaf.1484

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abstract = "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.",

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AU - Mehdi, Riyadh

AU - Hussain, Hanan

PY - 2021/1/1

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

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Keywords

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