The effect of inconsistent differences in financial ratio trends on model reliability
- Resource Type
- Conference
- Authors
- Yang, Z.R.; James, H.; Packer, A.
- Source
- Proceedings of the IEEE/IAFE 1997 Computational Intelligence for Financial Engineering (CIFEr) Computational intelligence for financial engineering Computational Intelligence for Financial Engineering (CIFEr), 1997., Proceedings of the IEEE/IAFE 1997. :273-279 1997
- Subject
- Communication, Networking and Broadcast Technologies
Computing and Processing
Signal Processing and Analysis
General Topics for Engineers
Neural networks
Predictive models
Constitution
Failure analysis
Construction industry
Costs
Profitability
Personnel
Economic forecasting
Accuracy
- Language
Inconsistent differences between the ratio trends of failed and successful companies have studied recently, but the effect of inconsistent differences on model reliability has not been studied so far. In fact, since the construction of a company failure prediction model requires the collection of company financial data over several years, inconsistent differences between the ratio trends of failed and successful companies makes a multi-dimensional data space formed by nonlinearly separable financial ratios. A thorough study of this causal relationship should help the correct selection of a method for model construction.