Selim Gungor1 and Muge Saglam Bezgin2
This study aims to analyze the effect energy-related uncertainty has on the volatility of the stock markets of 18 developed and developing countries ranking among the wealthiest according to their GDP. The study focuses on understanding how EUI influences market dynamics and volatility patterns across different economies. Using the GARCH-MIDAS approach, this research examines stock market indices from January 2003 to October 2022. The analysis reveals that all stock market indices are influenced by EUI. Notably, the S&P-TSX index exhibits the lowest MIDAS weight, indicating that Canada’s market volatility is the least affected by EUI. Conversely, the highest MIDAS component weights are observed in the markets of China and the United Kingdom. The EUI shows the greatest influence on the volatility of the Indian and Chinese markets, whereas its influence is minimal on the Brazilian and Canadian markets.
Investors are faced with the challenge of identifying the most promising companies for their potential investment in the stock market. This research study aims to propose a systematic approach to the selection of top-listed companies for investment, focusing on the two levels of analysis – the ratio analysis based on liquidity and profitability, and the multi-criteria ranking using the PROMETHEE method. The observed companies are divided into two groups: group A, which includes companies with a PE ratio above 50, and group B, which includes companies with a PE ratio below 5. The findings of the study highlight the fact that companies with higher PE ratios tend to exhibit better overall business performance as observed on an individual basis and based on the ratio analysis. Although there are noticeable differences in the ratio indicators between the companies, these differences are not significant when the overall review is considered. The combination of ratio analysis and the PROMETHEE method provides an effective method for evaluating their business performance, giving guidance to investors and decision-makers in selecting the most promising investment opportunities. The results of the multi-criteria ranking show that the companies that belong to group B have a better rank than the others, and that investors should invest in the companies Vale S.A. and Tesla, Inc. as well.