Selecting Internet company stocks using a combined DEA and AHP approach

The development of an efficient and scientific decision rule for selecting Internet stocks is a necessary and valuable investment tool. As a result, this article adopts two mathematical approaches: data envelopment analysis (DEA) and analytical hierarchical process (AHP) to construct a stock selection framework using 31 listed US Internet companies. The empirical results from this study form the basis for discussion of the combined DEA and AHP approach for selecting Internet stocks. The findings confirm the usefulness of the combined approach that incorporates efficiency analysis and structural decision making. Implications of these findings are also discussed.

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