scholarly journals An Intrinsic Entropy Model for Exchange-Traded Securities

Entropy ◽  
2019 ◽  
Vol 21 (12) ◽  
pp. 1173 ◽  
Author(s):  
Claudiu Vințe ◽  
Ion Smeureanu ◽  
Titus-Felix Furtună ◽  
Marcel Ausloos
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Random Variable ◽  
Algorithmic Trading ◽  
Decision Making Process ◽  
Test Results ◽  
Exogenous Factor ◽  
Entropy Model ◽  
Stock Portfolio ◽  
Individual Security

This paper introduces an intrinsic entropy model which can be employed as an indicator for gauging investors’ interest in a given exchange-traded security, along with the state of the overall market corroborated by individual security trading data. Although the syntagma of intrinsic entropy might sound somehow pleonastic, since entropy itself characterizes the fundamentals of a system, we would like to make a clear distinction between entropy models based on the values that a random variable may take, and the model that we propose, which employs actual stock exchange trading data. The model that we propose for the intrinsic entropy does not include any exogenous factor that could influence the level of entropy. The intrinsic entropy signals if the market is either inclined to buy the security or rather to sell it. We further explore the usage of the intrinsic entropy model for algorithmic trading, in order to demonstrate the value of our model in assisting investors’ intraday stock portfolio selection, along with timely generated signals for supporting the buy/sell decision-making process. The test results provide empirical evidence that the proposed intrinsic entropy model can be used as an indicator for evaluating the direction and the intensity of intraday trading activity of an exchange-traded security. The data employed for testing consisted of historical intraday transactions executed on The Bucharest Stock Exchange (BVB).

scholarly journals Real-Time Decision Making for Autonomous City Vehicles

2010 ◽  
Vol 22 (6) ◽  
pp. 694-701 ◽  
Author(s):  
Andrei Furda ◽  
◽  
Ljubo Vlacic
Keyword(s):  
Decision Making ◽  
Control System ◽  
Real Time ◽  
System Architecture ◽  
Urban Traffic ◽  
Decision Making Process ◽  
Test Results ◽  
World Model ◽  
State Of Research ◽  
Control System Architecture

This paper addresses the topic of real-time decision making by autonomous city vehicles. Beginning with an overview of the state of research, the paper presents the vehicle decision making & control system architecture, explains the subcomponents which are relevant for decision making (World Model and Driving Maneuver subsystem), and presents the decision making process. Experimental test results confirmthe suitability of the developed approach to deal with the complex real-world urban traffic.

scholarly journals Manipulation of Financial Statements Through the Use of Creative Accounting. Case of Romanian Companies

2020 ◽  
Vol 30 (3) ◽  
pp. 90-107
Author(s):  
Ioana-Lavinia Safta ◽  
Monica Violeta Achim ◽  
Sorin Nicolae Borlea
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Information ◽  
Decision Making Process ◽  
Creative Accounting ◽  
Red Flag

AbstractThe manipulation of the information presented through financial statements could represent a significant red flag for suspected fraud. In our paper, we investigated the extent to which the Romanian companies resort to manipulation of information data presented through the reported annual financial statements. For this purpose, we used a group consisting of 62 non-financial companies listed on the Bucharest Stock Exchange for the analyzed period 2017-2018. The results of our study show that a majority percentage of the Romanian companies (approx. 84%) resort to manipulation of information provided through financial statements. Following the analysis carried out by activity fields, the results show that the companies activating in the fields of tourism, constructions, trade and transport resort to the manipulation of financial statements in the percent of 100%, followed by the companies activating in the field of production (86%) and services (50%). Our results are extremely useful to the users of financial information who must acknowledge the risks that they are exposed to in their decision-making process.

ANALISIS PENGARUH LEVERAGE, UKURAN PERUSAHAAN DAN PROFITABILITAS TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN PADA PERUSAHAAN PERBANKAN

2018 ◽  
Vol 3 (2) ◽  
pp. 196 ◽  
Author(s):  
Viola Syukrina E Janrosl
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Firm Size ◽  
Stock Exchange ◽  
Financial Statements ◽  
Relevant Information ◽  
Descriptive Statistics ◽  
Test Results ◽  
F Test ◽  
Economic Decision Making

<p><em>This study aims to provide information on what factors make the company not timely in reporting financial statements that will be relevant information for investors in business and economic decision-making. The population in this study is the financial statements of banking companies listed on the Indonesia Stock Exchange. The sample in this study is the financial statements of banking companies listed on the Indonesia Stock Exchange from 2014-2016. This study uses descriptive statistics, t test and F test. The results of this study firm size partially significant effect on the timeliness of financial reporting while profitability and leverage have no significant effect on the timeliness of financial reporting. F test results obtained significant value 0.025 &lt;0.05 which shows simultaneously leverage, firm size, and profitability significantly influence the timeliness of financial reporting.</em></p><p> </p><p>Penelitian ini bertujuan untuk memberikan informasi mengenai faktor-faktor apa yang membuat  perusahaan tidak tepat waktu dalam melaporkan laporan  keuangan yang akan menjadi informasi yang relevan bagi investor dalam pengambilan keputusan bisnis dan ekonomi. Populasi dalam penelitian ini adalah laporan keuangan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia. Sampel dalam penelitian ini adalah laporan keuangan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia dari tahun 2014-2016. Penelitian ini mengunakan statistik deskriptif, uji t dan uji F. Hasil penelitian ini ukuran perusahaan secara parsial berpengaruh signifikan terhadap ketepatan waktu pelaporan keuangan sedangkan profitabilitas dan leverage tidak berpengaruh signifikan terhadap ketepatan waktu pelaporan keuangan. Hasil uji F didapatkan nilai signifikan 0,025 <strong>&lt;</strong>0,05 yang menunjukkan secara simultan leverage, ukuran perusahaan, dan profitabilitas berpengaruh secara signifikan terhadap ketepatan waktu pelaporan keuangan.</p>

Who Will Be Next?

2013 ◽  
pp. 241-256
Author(s):  
Elena Khoury ◽  
Maria C. Khoury
Keyword(s):  
Decision Making ◽  
Family Business ◽  
Succession Planning ◽  
Second Generation ◽  
Stock Exchange ◽  
Business Students ◽  
Decision Makers ◽  
Decision Making Process ◽  
Small Family ◽  
A Company

This case is about a family business, Taybeh Brewing Company (TBC), with strategic and succession planning issues including the need to prepare the second generation of decision makers to take over. It covers the centralization of control and issues that arise when it is time for a founder of a company to relinquish control or share in the decision making process. It also deals with the lack of interest by the second generation to continue what others initiated as a family legacy. The business has been approached to become listed on the stock exchange, but the owners have not made a decision. By reading about the small family business, students can learn about business structure that is proper for a company’s future, the pitfalls of founder’s syndrome, and succession planning, which according to Muna and Khoury (2012) becomes imperative for the first and second generations to take seriously.

Improving the Decision-Making Process in a Hospital Environment With New Interactive Visualization Methods

2021 ◽  
pp. 1001-1014
Author(s):  
Cristiana Neto ◽  
Diana Ferreira ◽  
António Abelha
Keyword(s):  
Decision Making ◽  
Medical Errors ◽  
Interactive Visualization ◽  
Hospital Environment ◽  
Diagnostic Process ◽  
Decision Making Process ◽  
Test Results ◽  
Adequate Treatment ◽  
Efficient Access ◽  
Visualization Process

A large number of medical errors occurring in hospitals happen in the diagnostic process, such as the use of outmoded tests and the failure to perform on test results, leading to delays in the diagnosis. Thus, fast and efficient access to the patients' exams and test results is essential to provide them adequate treatment. This need demands solving problems that exist during this process of consulting the results in order to reduce clinical risk. Therefore, an analysis of the problems in the visualization process of the exams in Centro Hospitalar do Porto was carried out, leading to the development of a new platform - AIDA-MCDT, whose main objective was to fill the gaps verified, making the access to exams' results more efficient and intuitive. This platform has significantly improved the system's usability, including several features designed to help healthcare professionals make decisions more quickly and securely.

scholarly journals Empirical evidence of market reactions based on signaling theory in Indonesia stock exchange

2019 ◽  
Vol 16 (2) ◽  
pp. 66-77
Author(s):  
Zarah Puspitaningtyas
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Abnormal Returns ◽  
Signaling Theory ◽  
Decision Making Process ◽  
Market Reactions ◽  
Positive Direction ◽  
Investment Decision Making ◽  
Dividend Announcements

Signaling theory assumes that it is necessary to signal investors to how they perceive company’s prospects. One of them is dividend announcements. The announcement of dividends is predicted to be a signal for investors in the investment decision making process. This study aims to determine and analyze the effect of dividend announcements, both increases and decreases in dividends, on stock returns. This study is intended to find empirical evidence about market reactions based on signaling theory in Indonesia Stock Exchange on the period 2017. The analysis of this study uses the event study method and hypothesis testing carried out using different test paired sample t-test. The results of this study prove that the market reacts to the announcement of dividends. The market reaction is indicated by the value of abnormal returns, namely abnormal returns in the positive direction when the announcement of dividend increased and abnormal returns in the negative direction when the announcement of dividend decreased. The value of abnormal returns in a positive direction reflects the company’s performance in good condition, and vice versa. This result indicates that dividend announcements are a signal and contain information relevant to investors in the investment decision making process.

Improving the Decision-Making Process in a Hospital Environment With New Interactive Visualization Methods

2020 ◽  
Vol 9 (1) ◽  
pp. 13-24
Author(s):  
Cristiana Neto ◽  
Diana Ferreira ◽  
António Abelha
Keyword(s):  
Decision Making ◽  
Medical Errors ◽  
Healthcare Professionals ◽  
Hospital Environment ◽  
Diagnostic Process ◽  
Decision Making Process ◽  
Test Results ◽  
Adequate Treatment ◽  
Efficient Access ◽  
Visualization Process

A large number of medical errors occurring in hospitals happen in the diagnostic process, such as the use of outmoded tests and the failure to perform on test results, leading to delays in the diagnosis. Thus, fast and efficient access to the patients' exams and test results is essential to provide them adequate treatment. This need demands solving problems that exist during this process of consulting the results in order to reduce clinical risk. Therefore, an analysis of the problems in the visualization process of the exams in Centro Hospitalar do Porto was carried out, leading to the development of a new platform - AIDA-MCDT, whose main objective was to fill the gaps verified, making the access to exams' results more efficient and intuitive. This platform has significantly improved the system's usability, including several features designed to help healthcare professionals make decisions more quickly and securely.

An examination of herding behavior in Pakistani stock market

2015 ◽  
Vol 10 (3) ◽  
pp. 474-490 ◽  
Author(s):  
Zuee Javaira ◽  
Arshad Hassan
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Stock Exchange ◽  
The Body ◽  
Investor Behavior ◽  
Decision Making Process ◽  
Herd Behavior ◽  
Herding Behavior ◽  
Content Type ◽  
Portfolio Returns

Purpose – The purpose of this paper is to examine the investment behavior of Pakistani stock market participants, specifically with respect to their tendency to exhibit herd behavior. Design/methodology/approach – The study employed two different methodologies suggested by Christie and Huang (1995) and Chang et al. (2000) to test herd formation. Results are based on daily and monthly stock of KSE-100 index for the period 2002-2007. Findings – Results based on daily and monthly stock data from Karachi Stock Exchange indicate the non-existence of herd behavior for the period 2002-2007 and find no support for the rational asset pricing model and investor behavior found inefficient. This study denied proved evidence of herding due to market return asymmetry, high and low trading volume states and asymmetric market volatility. Macroeconomic fundamentals have insignificant role in decision-making process of investor therefore has no impact on herding behavior. However, during liquidity crisis of March 2005, Pakistani stock market exhibit herding behavior due to asymmetry of information among investors, presence of speculator and questionable badla financing-local leverage financing mechanism. Research limitations/implications – In future, this study can be improved by employing stock returns portfolios based on market capitalization or sector wise portfolio returns from KSE-100. Furthermore by identifying those factors that cause market to be overall inefficient and define the pattern of the investor trading activities. Practical implications – For an accurate valuation of assets investors should incorporate the herding factor. Social implications – As the assets are mispriced, investor behavior is uncertain and markets are inefficient, foreign investors should invest with caution, as large numbers of securities are needed to achieve the same level of diversification than in an otherwise normal market. Originality/value – In Karachi Stock Exchange, it is first attempt to uncover the herding behavior. This paper contribute to the body of knowledge by investigating the herding behavior in the emerging markets since most of the previous study concentrate more on the developed markets. Furthermore, the study also analyzed the herding behavior in different economic condition and includes economic variables and examines asymmetric effect. This study presents an integrated model to test herding behavior in Pakistani equity market. Consideration of said behavioral effect in the decision-making process of investor will make the decisions more rational and optimal.

scholarly journals EARNINGS MANAGEMENT AND ITS DETERMINANT (STUDY OF LISTED COMPANIES ON INDONESIA STOCK EXCHANGE)

AKUNTABILITAS ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 89-102
Author(s):  
Ruth Samantha Hamzah ◽  
Efva Octavina Donata Gozali ◽  
Nur Khamisah
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Firm Size ◽  
Management Practices ◽  
Stock Exchange ◽  
Listed Companies ◽  
Earning Management ◽  
Decision Making Process ◽  
Analysis Method ◽  
Independent Variables

The study aims to identify the determinant factors that affecting earning management practices of companies. We used firm size, age, leverage (DER) and profitability (ROA) as independent variables in term of earnings management detection. There were 344 listed companies in Indonesian Stock Exchange at the year of 2017 and 2018, thus there were 688 observed companies as samples. Purposive sampling and multiple regression were employed as sampling and analysis method, respectively. The results show that firm size, age and ROA have a significant effect toward earnings management, whilst DER has no significant effect towards earning management. In addition, earnings management detection provides information to investors and potential investors in decision making process.

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