Effects of Factors on the Market Price of the Shares Using Design of Experiment

Authors

Amir Ahmad Dar, Department of Mathematical Sciences, Islamic University of Science and Technology, Pulwana, IndiaFollow
Mohammad Shahfaraz Khan, Department of Business Administration, University of Technology and Applied Sciences, Salalah, OmanFollow
Imran Azad, Department of Business Administration, University of Technology and Applied Sciences, Salalah, OmanFollow
Tanveer Ahmad Tarray, Department of Mathematical Sciences, Islamic University of Science and Technology, Pulwana, IndiaFollow
N. Anuradha, GITAM School of Business, Gandhi Institute of Technology and Management, Visakhapatnam, IndiaFollow
Qaiser Farroq Dar, Department of Health Research, ICMR-National Institute of Research in Tribal Health, Jabalpur, IndiaFollow

Author Country (or Countries)

India

Abstract

When the cost of capital, dividends and the price of the share at the beginning is known, Modigliani and Miller’s model can be used to estimate the price of the share at the end of the period. A design of experiment (Taguchi’s orthogonal array) is used in order to investigate the impact of three parameters on the price of the share at the end of the period. The main aim of this research article is to find which parameter is more significant on the price of the share at the end of the period. Taguchi’s methodology of design of the experiment is used for the experimental setup and to optimize the factors for the value of shares. In this study, the optimal combination of input factors is sought for the first time using the Taguchi method. To explore the effects of input factors, the Taguchi method L9 design of experiment (DOE), analysis of variance (ANOVA), regression analysis, and analysis of mean (ANOM) are used and the analysis is carried out using MINITAB 18 software. The ANOM is used to check the best optimal combination among the parameters where the value of the share is maximum, also it measures which parameter impacts more on the price of the share at the end of the period. ANOVA is used to measure the percentage contribution of each parameter on the price of the share.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/amis/170313

Recommended Citation

Ahmad Dar, Amir; Shahfaraz Khan, Mohammad; Azad, Imran; Ahmad Tarray, Tanveer; Anuradha, N.; and Farroq Dar, Qaiser (2023) "Effects of Factors on the Market Price of the Shares Using Design of Experiment," Applied Mathematics & Information Sciences: Vol. 17: Iss. 3, Article 13.
DOI: http://dx.doi.org/10.18576/amis/170313
Available at: https://digitalcommons.aaru.edu.jo/amis/vol17/iss3/13