Is Profitability The Only One Factor Affecting Decision On Investment In Exchange Rates?
Although profitability is the ultimate aim of making investment in exchange rates, some more factors can be mentioned about that affect the decision of financial player. Starting from this point of view, it is investigated in this study what those factors can be and how effective they are. First, in the light of literature review and expert opinions, those factors are attempted to determine. Then, an analytic evaluation of those –mostly– intangible factors is carried out via the Decision Making Trial and Evaluation Laboratory (DEMATEL). The most distinguishing contributions of this study can be defined as i. demonstrating that factors except profitability are effective on the decision, and ii. weights of all factors can be calculated analytically even they are intangible. This talk is planned to be concluded with a discussion of pros and cons of the proposed methodology as well as directions for future works.
Keywords:Exchange rates, the DEMATEL, behavioral finance