A stochastic simulation approach to financial forecasting using simultaneous equations

Abstract

Outlines Warren and Shelton’s system for modelling a firm’s operations as a set of simultaneous equations, its limitations and the addition of Monte Carlo simulation into it by Coats and Chesser. Develops these ideas further and applies the new simulation model to a Greek clothing firm to test its effectiveness. Considers other possible applications, e.g. forecasting, calculating the cost of capital and valuation.

Citation

Artikis, P.G. and Artikis, G.P. (1999), "A stochastic simulation approach to financial forecasting using simultaneous equations", Managerial Finance, Vol. 25 No. 8, pp. 12-21. https://doi.org/10.1108/03074359910766082