Evaluating multi-criteria ratings of financial investment options

Andrew N.K. Chen, Shin-Yun Wang and Po-Lung Yu

International Review of Economics & Finance, 2014, vol. 31, issue C, 46-58

Abstract: In the financial market, most available rating information is based on multi-criteria and published by myriad agents or companies. Given a multi-criteria rating report on a finite number of assets (e.g., stocks, bonds, mutual funds), we can construct sets of ordered classes. If ratings from a published report have useful and valid information value as claimed, the average performances of assets within classes are expected to show some monotonic property. A set of hypotheses and empirical tests based on Value Line Mutual Fund Survey are provided to illustrate our proposed method. Implications and future research opportunities are also discussed.

Keywords: Multiple criterion ratings; Information quality; Implied ordered classes (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:31:y:2014:i:c:p:46-58

DOI: 10.1016/j.iref.2013.12.003

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