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
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Journal ArticleDOI
Employee satisfaction moderates the effects of green supply chain management, leadership and organizational culture on corporate performance
TL;DR: In this article , the authors used structural equation modeling using partial least squares to determine if employee satisfaction mitigates the detrimental effects that organizational culture, leadership, and GSCM have on corporate performance.
Journal ArticleDOI
When internal organizational factors improve detecting corruption in state-owned companies
Abstract:
Purpose
The phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance (GRC) implementation, the quality of internal audits and management's commitment to improving the ability to detect corruption and its impact on the company's financial performance.
Design/methodology/approach
This paper used primary and secondary data. Financial statement data and survey results from participants in 69 state-owned companies were analyzed using the Partial Least Square method.
Findings
There was a positive and significant effect of the integrated GRC implementation, quality of internal audit and management's commitment to increasing the organization's internal capability in detecting corruption. However, the failure to detect corruption mediates the effect of management commitment on financial performance. Besides, the organization's three internal factors could be better because their functions could be more optimal and require further improvement.
Research limitations/implications
State-owned companies are continuing to be restructured, so these results can be helpful for now. However, they must update continuously with developments related to the composition and classification of state-owned companies.
Practical implications
Organizations can improve their ability to detect corruption in the workplace by using an early warning system such as the integrated GRC, internal audit quality and a high commitment from management.
Originality/value
To the author's limited knowledge, empirical research on integrated GRC implementation, internal audit quality and management commitment are still rare if they improve the detection of corruption ability. It uses the factors that cause corruption in the fraud hexagon to analyze the financial performance.
Technology policy evaluation: The interaction between the financial constraint of firms and level of financial additionality
Joost Heijs,Alex Guerrero +1 more
TL;DR: In this article , the authors analyzed the differentiated effects of the public support for private R&D and innovation considering the financial situation of the firm and found that the firms that have less access to funds for RDI get more frequently support and show a higher level of financial additionality than the firms with less financial restrictions.
Journal ArticleDOI
Eficiencia de los modelos Poisson y Logístico en la asignación de probabilidades de incumplimiento a empresas mineras mexicanas
TL;DR: In this paper, the authors investigate the probabilidades de incumplimiento de empresas del sector minero al subestimar las colas, and show that the modelos Logisticos and Probabilistic Probit do not capture the valores extremos of the distribucion.
Journal ArticleDOI
Halka Açik Ve Halka Açik Olmayan Isletmelerde Finansal Sürekliligin Denetimi Ve Bursa Ilinde Bir Arastirma 1/auditing of Financial Sustainability for Publicly and Non-Publicly Listed Companies and A Research in Bursa
Alp Aytaç,Ümit Gücenme Gençoğlu +1 more
TL;DR: Turkiye Bagimsiz Denetim Standartlari (BDS), Turkiye'deki denetim uygulamalarina koklu degiciklikler getirmektedir as discussed by the authors.
References
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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.
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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.