Effect of chaos theory on Tehran stock exchange index
Nasrollah Amouzesh*1, Mohsen Ahmadi2
1. Department of Accounting, Gachsaran branch, Islamic Azad University, Gachsaran, Iran
2. Department of Accounting, Gachsaran branch, Islamic Azad University, Gachsaran, Iran
Abstract: Accuracy and adequacy of economical prediction models in the world of business, is strategic and vital. Many economists believe that the linear models are not suitable enough for prediction of price and shares index. Therefore many of the researches are concentrating on the economical time series and their suitable dynamic models. In the present research the whole share price in a 5 years duration from 2008 to 2012 have been chosen as the statistical sample to find out the effect of chaos theory on Tehran stock exchange index. A main hypothesis which has been considered is: the chaos theory has effect on the whole share price index and also 3 secondary hypotheses have been mentioned which are whole shares prices index have non-random structure. Whole share price index have non-linear structure. Whole share price index has chaos structure. For data processing Herest view test has been used and then Liaponof view and coordination is used. Results of the research show that the whole share price index has non-random, non-linear and chaos structure and therefore chaos point of view theory has effect on the whole share price index in Tehran stock exchange.
[Nasrollah Amouzesh, Mohsen Ahmadi. Effect of chaos theory on Tehran stock exchange index. Life Sci J 2013;10(7s):79-83] (ISSN:1097-8135). http://www.lifesciencesite.com.
Keywords: economical prediction models, chaos theory, non-random structure, non-linear structure.