engleski

Evaluation of Benfords law application in stock prices and stock turnover

Application of Benfords law in the field of financial analysis is very rarely coverd. In this paper it is researched possibility of this law in analysis of stock prices and stock turnover in Zagreb stock exchange. On this basis of online available and public data, sets of input numbers are prepeard. These sets are checked against Benfords law. Resultates show that sets partially fit to this law. Stock turnover data conforms to Benfords law, while daily closing stock prices do not. Probably, psychological factors significantly influence daily closing stock prices, so these values do not conform to Benfords distribution.

Benfords law; information system auditing; stock exchange; stock turnover; deviation measure

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