Journal ArticleDOI
Measuring firm performance using financial ratios: A decision tree approach
TLDR
Sensitivity analyses indicated that Earnings Before Tax-to-Equity Ratio and Net Profit Margin are the two most important variables, and the CHAID and C5.0 decision tree algorithms produced the best prediction accuracy.Abstract:
Determining the firm performance using a set of financial measures/ratios has been an interesting and challenging problem for many researchers and practitioners Identification of factors (ie, financial measures/ratios) that can accurately predict the firm performance is of great interest to any decision maker In this study, we employed a two-step analysis methodology: first, using exploratory factor analysis (EFA) we identified (and validated) underlying dimensions of the financial ratios, followed by using predictive modeling methods to discover the potential relationships between the firm performance and financial ratios Four popular decision tree algorithms (CHAID, C50, QUEST and C&RT) were used to investigate the impact of financial ratios on firm performance After developing prediction models, information fusion-based sensitivity analyses were performed to measure the relative importance of independent variables The results showed the CHAID and C50 decision tree algorithms produced the best prediction accuracy Sensitivity analysis results indicated that Earnings Before Tax-to-Equity Ratio and Net Profit Margin are the two most important variablesread more
Citations
More filters
Journal ArticleDOI
Analyst's stock views and revision actions
William R. Ledoux,Tao Li +1 more
TL;DR: In this paper, the authors employ the hidden Markov model (HMM) to model analysts' revision activities and make inference for the "stock views" through the revision-view consistency.
Journal ArticleDOI
Finansal Tablo Hileleri’nin Makine Öğrenmesi Yöntemleri ve Lojistik Regresyon Kullanılarak Tahmin Edilmesi: Borsa İstanbul Örneği
TL;DR: In this article, a calismada Borsa Istanbul 2000-2019 yillari arasinda islem goren 88 sirketin finansal tablolarinda sahtekârlik yapip yapmadiklari bir yil oncesinden tahmin etmek icin etkili bir model olusturulmasi amaclanmistir, bu amacla makine ogrenmesi yontemlerinden Yapay Sinir Aglari (ANN), Siniflandirma
Book ChapterDOI
Currency and Interest Rate Effect on Financial Ratios: Technology Case on ISE
TL;DR: In this paper, the effects of currency and interest rates on selected financial ratios of technology firms were analyzed in a developing country, as an economic indicator, currency and rates have crucial impact on technology firms' financial statements.
Dissertation
The Relation Between Corporate Values and Firm Performance of the World's 142 Largest Banks
TL;DR: In this article, the authors examined the relation between corporate values and firm performance of the largest banks in the world and found that there is no relation between the use of a specific set of corporate values with respect to firm performance.
Journal ArticleDOI
Re-examining the ability to explain future South African banking share returns: A data envelopment analysis approach
Chris van Heerden,Johan Coetzee +1 more
TL;DR: In this article, the authors investigated the relationship between expected returns and leverage in the so-called SharpeLintner-Black (SLB) model and found that leverage risk should already be captured by the market beta and that including leverage in a model (which already accounts for market size and beta) improves the explanation of average share returns.
References
More filters
Book
Discovering Statistics Using SPSS
Andy P. Field,Jeremy N.V. Miles +1 more
TL;DR: Suitable for those new to statistics as well as students on intermediate and more advanced courses, the book walks students through from basic to advanced level concepts, all the while reinforcing knowledge through the use of SAS(R).
Journal ArticleDOI
Classification and Regression Trees.
Book
C4.5: Programs for Machine Learning
TL;DR: A complete guide to the C4.5 system as implemented in C for the UNIX environment, which starts from simple core learning methods and shows how they can be elaborated and extended to deal with typical problems such as missing data and over hitting.
Book
Data Mining: Practical Machine Learning Tools and Techniques
TL;DR: This highly anticipated third edition of the most acclaimed work on data mining and machine learning will teach you everything you need to know about preparing inputs, interpreting outputs, evaluating results, and the algorithmic methods at the heart of successful data mining.
Journal ArticleDOI
Classification and regression trees
TL;DR: This article gives an introduction to the subject of classification and regression trees by reviewing some widely available algorithms and comparing their capabilities, strengths, and weakness in two examples.