A SHAP Value-Based Approach to Stock Price Evaluation of Manufacturing Companies

Abstract

In this study, we propose the usage of Shapley values as explanatory variables’ values to represent operational competence measures and try to relate such operational competencies to stock price evaluation. For this analysis, we used the data of Japanese manufacturing companies of three industries, automobiles, electronics and precision machinery equipment. Based on the analysis results, we advocate this type of approach can be expected to provide more reliable information because such operational measures are considered to signal the status of management quality competence.