The aim of this study was to investigate the profitability of variable reduction methods for predicting the risk of the stock price drop of companies listed in Tehran Stock Exchange. To achieve this, the literature review was conducted and 24 primary variables were selected which were most frequently used in the literature and the required data for measuring them was available. | 633 Int. J Sup. Chain. Mgt Vol. 8 No. 2 April 2019 Investigation of the Profitability of the Methods of Selecting for Predicting the Risk of Stock Price Fall in the Supply Chain of Companies Listed in Tehran Stock Exchange Hassan Mohammadi1 Alireza Zarei Soudani2 1 Department of Accounting Isfahan Khorasgan Branch Islamic Azad University Isfahan Iran Alireza Zarei Soudani2 . 2 Department of Accounting Falavarjan Branch Islamic Azad University Falavarjan Iran Abstract- The aim of this study was to investigate the 1. Introduction profitability of variable reduction methods for predicting the risk of the stock price drop of companies listed in Tehran Based on the significance of considering the risk of stock Stock Exchange. To achieve this the literature review was price fall in decision making by investors and creditors as conducted and 24 primary variables were selected which well as the significant role of selection and extraction of were most frequently used in the literature and the required data for measuring them was available. The optimum optimum predictor variables in predictions the present variables were selected or extracted among the primary paper examined the performance of different nonlinear variables using variable selection methods the correlation- methods and compared them in respect to predicting the based method and the relief method and variable extraction risk of the stock price fall. To achieve this the profitability methods the factor analysis and the principal component of the factor analysis method principal component analysis . Then the risk of stock price fall for 101 companies analysis method and the correlation-based method for listed in Tehran Stock Exchange was predicted for 2001-2015 selecting and extracting the optimum predictor variables using linear regression. In order to evaluate the were investigated and compared. So far no study has been performanceof the variable reduction methods the conducted on predicting the risk of the .
