ABSTRACT
This chapter focuses on the evaluation of glamour stock investment. It aims to adopt the well-known G-score model as the research framework, which not only considers the financial fundamentals but also addresses the psychological aspects, to develop a hybrid multiple attributes decision making (MADM) model for evaluating glamour stocks. The hybrid MADM model allows decision makers to rate glamour stocks in all criteria using a 10-point performance scale and offers more precise performance measurements compared with the binary signals in the original G-score model. The chapter demonstrates that investment experts' implicit knowledge can be retrieved by the proposed vikor-decision-making trial and evaluation laboratory-based analytic network process (DANP) method when selecting glamour stocks. To examine the effectiveness of the proposed vikor-DANP method, it explores the relationship between the ranking of target stocks and the corresponding stock's subsequent holding period return from the end of May 2009 to December 2012.
