The Determinants of Industry Analysis: An Application to Practitioners of Money Management

Augustine C. Arize, Brian Maruffi, John Malindretos, Krishna M. Kasibhatla, Moschos Scoullis

Abstract


This research study examines whether practitioners of money follow the precepts of the Finance profession. The theory of finance believes in the efficiency hypothesis. It states that an investor may not beat the averages consistently, and so s/he should invest in an index fund. We discover that practitioners of money believe they can surpass the return of an index, and, thus, they invest aggressively. One of the techniques they use is the analysis of industries. Thus, they analyze the external environment, the business cycle, the industry life cycle and finally the competitive environment.


Full Text:

PDF


DOI: http://dx.doi.org/10.5296/jmr.v5i1.2642

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Copyright © Macrothink Institute ISSN 1941-899X

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.