TY  - JOUR
TT  - Assessing the Predictive Power of Customer Satisfaction for Financial and Market Performances: Price-to-Earnings Ratio is a Better Predictor Overall
AU  - Rostan, Pierre
AU  - Rostan, Alexandra
PY  - 2012
DA  - March
JF  - International Review of Management and Marketing
JO  - IRMM
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4405
SP  - 59
EP  - 74
VL  - 2
IS  - 1
KW  - Customer satisfaction
KW  - Financial performance
KW  - Market performance
KW  - Price-to-Earnings
KW  - Financial ratio
KW  - Market ratio
N2  - Our paper shows that based on the RMSE criteria, Price-to-Earnings ratio is a better predictor of financial and market performances of the firm than the Customer Satisfaction index (CS). This conclusion is based on the choice of five financial and seven market indicators that we consider as proxies for financial and market performances with a sample comprising eighty-six companies: Book value, dividend yield, Gross Profit Margin, Price to Cash-Flows, Price-to-Earnings, Price to Sales, Annual return, ROA, ROE, ROI, Volatility and Tobin’s Q. However, CS clearly outperforms our five benchmarks (Tobin’s Q, Price-to-Cash Flows, Price-to-Earnings, Volatility or the indicator itself) when forecasting Tobin’s Q, Volatility, ROE and ROI. In periods of volatile market such as year 2008, CS is a more stable predictor of Volatility or ROE than the indicators themselves (i.e. Volatility for Volatility, ROE for ROE).
UR  - https://dergipark.org.tr/en/pub/irmm/article/354988
L1  - https://dergipark.org.tr/en/download/article-file/366609
ER  -