Abstract:
During recent years, examining the performance of contrarian strategies has been taken into consideration by scholars and stock market's activists, though several evidences are available based on profitability of this type of strategies, much of them have been referred to American and European's stock markets. In current study, the act of these strategies will be examined in Tehran's stock exchange over a time spanning 2007 and 2009 by using Fuzzy approach and by computing portfolios' return comprising stock with indices such as low Price/Earning, small size, high payout ratio, low market value/book value and by cross sectional weighted data analysis method. Results show that meaning relation between valuable stock with low Price/Earning, small size, and high payout ratio is tendered offer by Fuzzy Expert System.
Machine summary:
"Studying the performance of contrarian strategies in Tehran stock exchange with using Fuzzy approach Receipt: March 10 , 2011 Acceptance: may 19 , 2011 Mohammad Nasiri PhD student of Managerial Finance, Islamic Azad University, Science and Research Branch, mohammadnasiri1359@gmail.
In current study, the act of these strategies will be examined in Tehran's stock exchange over a time spanning 2007 and 2009 by using Fuzzy approach and by computing portfolios' return comprising stock with indices such as lowPrice/Earning, small size, highpayout ratio,low marketvalue/bookvalue and by crosssectional weighteddata analysis method.
These strategies recommend investors to buy stock which aren’t currently considered by market and have characteristics like low Price/Earning, high payout ratio, low market value/book value, and small size [17].
Joseph Kang, Ming-Hua Liu & Sophie Xiaoyan Ni (2002) by data related to accepted firms in China stock exchange during 1993 and 2000, ascertained that over short-run and mid-term time spans contrarian strategies yield abnormal return especially regarding small firms [14].
Few Persian preformed researches which to some extent are related to some aspects of this study can refer to following cases: Reza Raei and Alireza Sh. Zavvareh (2006) in a study titled by "performance measurement of investing strategies in Tehran stock exchange", considered to examine performance of valued and developmental stock firms as well as small and large firms in contrast to each other [24].
In another research titled by "applying cross-sectional method in relation to study the effect of firm's size and book value/common stock's market value on stock return and profitability of accepted firms in Tehran stock exchange", which carried out by Gholamreza Derakhshande."