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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Enhancing TQM’s effect on small business performance: a PLS-SEM exploratory study of TQM applied with a comprehensive strategic approach
TL;DR: In this article , the authors apply partial least squares structural equation modeling (PLS-SEM) to explore TQM's effect on small business performance and how other management practices enhance that relationship.
Journal ArticleDOI
Retraction notice to “Company financial path analysis using fuzzy c-means and its application in financial failure prediction” [Journal of Business Economics and Management, 19(1), 213-234, 2018]
Jiaming Liu,Chong Wu +1 more
TL;DR: The article will remain online to maintain the scholarly record, but it will be digitally watermarked on each page as “retracted” as discussed by the authors, since there are presented some paraphrased ideas with slight changes from published article.
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).
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Classification and Regression Trees.
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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.
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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.