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A quantitative perspective of Porter's industry forces framework for investment analysis
Managerial and Decision Economics ( IF 1.379 ) Pub Date : 2021-05-05 , DOI: 10.1002/mde.3358
Sang Hoon Jung 1 , Yong Jin Jeong 1
Affiliation  

Porter's industry forces framework is an important tool for external analysis of firms, but its qualitative nature presents numerous limitations to be used in investment analysis. This study introduces a quantitative perspective of the framework using financial information proxies. This allows investors to gauge the external factors quantitatively and to gain enhanced framework usability. In order to test its validity, the correlation movements of our quantitative perspective have been analysed. For demonstration of enhanced usability, our quantitative perspective, alongside machine learning models, was used to predict business performances. The empirical results indicate that our quantitative perspective of the framework corroborates with its original definition and that it exhibits enhanced usability than the original framework.

中文翻译:

用于投资分析的波特产业力量框架的定量视角

波特的行业力量框架是企业外部分析的重要工具,但其定性性质在投资分析中存在许多局限性。本研究介绍了使用财务信息代理的框架的定量视角。这使投资者能够定量地衡量外部因素并获得增强的框架可用性。为了测试其有效性,我们分析了我们定量视角的相关性变动。为了展示增强的可用性,我们的定量视角与机器学习模型一起用于预测业务绩效。实证结果表明,我们对该框架的定量观点与其原始定义相符,并且它比原始框架具有更高的可用性。
更新日期:2021-05-05
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