Title :
The effect of inconsistent differences in financial ratio trends on model reliability
Author :
Yang, Z.R. ; James, H. ; Packer, A.
Author_Institution :
Dept. of Land & Constr. Manage., Univ. of Portsmouth, UK
Abstract :
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
Keywords :
corporate modelling; reliability theory; causal relationship; company failure prediction model; failed companies; financial data collection; financial ratio trends; inconsistent differences; model construction method; model reliability; multi-dimensional data space; nonlinearly separable financial ratios; successful companies; Accuracy; Constitution; Construction industry; Costs; Economic forecasting; Failure analysis; Neural networks; Personnel; Predictive models; Profitability;
Conference_Titel :
Computational Intelligence for Financial Engineering (CIFEr), 1997., Proceedings of the IEEE/IAFE 1997
Conference_Location :
New York City, NY
Print_ISBN :
0-7803-4133-3
DOI :
10.1109/CIFER.1997.618948
