Deriving wisdom from virtual investing communities: an alternative strategy to stock recommendations
| Autor: | Pradip Kumar Bala, Shubhadeep Mukherjee, Rahul Kumar, Bipul Kumar |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
050208 finance
business.industry Investment strategy Strategy and Management 05 social sciences General Decision Sciences 02 engineering and technology Management Science and Operations Research Investment management Business analytics 0502 economics and business New product development Credibility 0202 electrical engineering electronic engineering information engineering Portfolio 020201 artificial intelligence & image processing Stock market Marketing business Stock (geology) |
| Zdroj: | Journal of Modelling in Management. 16:668-688 |
| ISSN: | 1746-5664 |
| DOI: | 10.1108/jm2-09-2019-0229 |
| Popis: | Purpose Colossal information is available in cyberspace from a variety of sources such as blogs, reviews, posts and feedback. The mentioned sources have helped in improving various business processes from product development to stock market development. This paper aims to transform this wealth of information in the online medium to economic wealth. Earlier approaches to investment decision-making are dominated by the analyst's recommendations. However, their credibility has been questioned for herding behavior, conflict of interest and favoring underwriter's firms. This study assumes that members of the online crowd who have been reliable, profitable and knowledgeable in the recent past will continue to be so soon. Design/methodology/approach The authors identify credible members as experts using multi-criteria decision-making tools. In this work, an alternative actionable investment strategy is proposed and demonstrated through a mock-up. The experimental prototype is divided into two phases: expert selection and investment. Findings The created portfolio is comparable and even profitable than several major global stock indices. Practical implications This work aims to benefit individual investors, investment managers and market onlookers. Originality/value This paper takes into account factors: the accuracy and trustworthiness of the sources of stock market recommendations. Earlier work in the area has focused solely intelligence of the analyst for the stock recommendation. To the best of the authors’ knowledge, this is the first time that the combined intelligence of the virtual investment communities has been considered to make stock market recommendations. |
| Databáze: | OpenAIRE |
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