The Improvement of Stock Trade Policies: The Role of Quality Characteristics

Products’ quality could significantly influence user experience thus companies’ performance in capital market would be affected. This paper explores the impact of products’ quality characteristics on stock performance by discussing the stock trade policies. The research samples are comprised of Apple corporation’s main type of products with their customer online reviews. Our study demonstrates that products’ quality characteristics could improve annualized return, Sharpe ratio and maximum drawdown in basic stock trade policies. We provide new evidence of the improvement of quality characteristics on stock trade policies.