Mixed Markov modelling of financial success: Empirical evidence with Swedish data
Abstract
Discusses and empirically tests special cases of multiple‐chain mixed Markov latent class models with business data. The switches between negative and positive changes in earnings‐per‐share of firms are captured by alternative Markov models. The estimated response probabilities and state transition probabilities show interesting changes in the transformation patterns of the firms over time. Shows that Markov models can be valuable tools in predicting switches in profitability of firms.
Keywords
Citation
Aaltonen, J. and Östermark, R. (1998), "Mixed Markov modelling of financial success: Empirical evidence with Swedish data", Kybernetes, Vol. 27 No. 1, pp. 54-70. https://doi.org/10.1108/03684929810200530
Publisher
:MCB UP Ltd
Copyright © 1998, MCB UP Limited