• Title/Summary/Keyword: Business Performance Prediction

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The Effect of Management Forecast Precision on CEO Compensation-Accounting Performance (경영자 이익예측 정확성이 성과-보상에 미치는 영향)

  • Lee, Eun-Ju;Sim, Won-Mi;Kim, Jeong-Kyo
    • Journal of Digital Convergence
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    • v.16 no.10
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    • pp.125-132
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    • 2018
  • The purpose of this study is to analyze the effect of managerial predictive accuracy on managerial performance-compensation. In this study, we compared managerial performance with managerial performance, And to analyze the relationship between manager compensation and manager compensation using managerial profit prediction accuracy. As a result of this study, there is a significant positive relationship between profit prediction accuracy and manager compensation, which can be interpreted as a result of manager's ability to compensate manager's ability to predict the future well. In this paper, we propose a new methodology that can be used to analyze the effects of managerial compensation on managerial compensation. This is because there is a difference in that it is proved to be a factor. Therefore, it is important to note that the prediction of the future of the company also identifies the additional determinants that affect manager compensation contracts with the key managerial capabilities.

A Multi-step Time Series Forecasting Model for Mid-to-Long Term Agricultural Price Prediction

  • Jonghyun, Park;Yeong-Woo, Lim;Do Hyun, Lim;Yunsung, Choi;Hyunchul, Ahn
    • Journal of the Korea Society of Computer and Information
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    • v.28 no.2
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    • pp.201-207
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    • 2023
  • In this paper, we propose an optimal model for mid to long-term price prediction of agricultural products using LGBM, MLP, LSTM, and GRU to compare and analyze the three strategies of the Multi-Step Time Series. The proposed model is designed to find the optimal combination between the models by selecting methods from various angles. Prior agricultural product price prediction studies have mainly adopted traditional econometric models such as ARIMA and LSTM-type models. In contrast, agricultural product price prediction studies related to Multi-Step Time Series were minimal. In this study, the experiment was conducted by dividing it into two periods according to the degree of volatility of agricultural product prices. As a result of the mid-to-long-term price prediction of three strategies, namely direct, hybrid, and multiple outputs, the hybrid approach showed relatively superior performance. This study academically and practically contributes to mid-to-long term daily price prediction by proposing an effective alternative.

Bankruptcy Prediction Modeling Using Qualitative Information Based on Big Data Analytics (빅데이터 기반의 정성 정보를 활용한 부도 예측 모형 구축)

  • Jo, Nam-ok;Shin, Kyung-shik
    • Journal of Intelligence and Information Systems
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    • v.22 no.2
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    • pp.33-56
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    • 2016
  • Many researchers have focused on developing bankruptcy prediction models using modeling techniques, such as statistical methods including multiple discriminant analysis (MDA) and logit analysis or artificial intelligence techniques containing artificial neural networks (ANN), decision trees, and support vector machines (SVM), to secure enhanced performance. Most of the bankruptcy prediction models in academic studies have used financial ratios as main input variables. The bankruptcy of firms is associated with firm's financial states and the external economic situation. However, the inclusion of qualitative information, such as the economic atmosphere, has not been actively discussed despite the fact that exploiting only financial ratios has some drawbacks. Accounting information, such as financial ratios, is based on past data, and it is usually determined one year before bankruptcy. Thus, a time lag exists between the point of closing financial statements and the point of credit evaluation. In addition, financial ratios do not contain environmental factors, such as external economic situations. Therefore, using only financial ratios may be insufficient in constructing a bankruptcy prediction model, because they essentially reflect past corporate internal accounting information while neglecting recent information. Thus, qualitative information must be added to the conventional bankruptcy prediction model to supplement accounting information. Due to the lack of an analytic mechanism for obtaining and processing qualitative information from various information sources, previous studies have only used qualitative information. However, recently, big data analytics, such as text mining techniques, have been drawing much attention in academia and industry, with an increasing amount of unstructured text data available on the web. A few previous studies have sought to adopt big data analytics in business prediction modeling. Nevertheless, the use of qualitative information on the web for business prediction modeling is still deemed to be in the primary stage, restricted to limited applications, such as stock prediction and movie revenue prediction applications. Thus, it is necessary to apply big data analytics techniques, such as text mining, to various business prediction problems, including credit risk evaluation. Analytic methods are required for processing qualitative information represented in unstructured text form due to the complexity of managing and processing unstructured text data. This study proposes a bankruptcy prediction model for Korean small- and medium-sized construction firms using both quantitative information, such as financial ratios, and qualitative information acquired from economic news articles. The performance of the proposed method depends on how well information types are transformed from qualitative into quantitative information that is suitable for incorporating into the bankruptcy prediction model. We employ big data analytics techniques, especially text mining, as a mechanism for processing qualitative information. The sentiment index is provided at the industry level by extracting from a large amount of text data to quantify the external economic atmosphere represented in the media. The proposed method involves keyword-based sentiment analysis using a domain-specific sentiment lexicon to extract sentiment from economic news articles. The generated sentiment lexicon is designed to represent sentiment for the construction business by considering the relationship between the occurring term and the actual situation with respect to the economic condition of the industry rather than the inherent semantics of the term. The experimental results proved that incorporating qualitative information based on big data analytics into the traditional bankruptcy prediction model based on accounting information is effective for enhancing the predictive performance. The sentiment variable extracted from economic news articles had an impact on corporate bankruptcy. In particular, a negative sentiment variable improved the accuracy of corporate bankruptcy prediction because the corporate bankruptcy of construction firms is sensitive to poor economic conditions. The bankruptcy prediction model using qualitative information based on big data analytics contributes to the field, in that it reflects not only relatively recent information but also environmental factors, such as external economic conditions.

Default Prediction for Real Estate Companies with Imbalanced Dataset

  • Dong, Yuan-Xiang;Xiao, Zhi;Xiao, Xue
    • Journal of Information Processing Systems
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    • v.10 no.2
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    • pp.314-333
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    • 2014
  • When analyzing default predictions in real estate companies, the number of non-defaulted cases always greatly exceeds the defaulted ones, which creates the two-class imbalance problem. This lowers the ability of prediction models to distinguish the default sample. In order to avoid this sample selection bias and to improve the prediction model, this paper applies a minority sample generation approach to create new minority samples. The logistic regression, support vector machine (SVM) classification, and neural network (NN) classification use an imbalanced dataset. They were used as benchmarks with a single prediction model that used a balanced dataset corrected by the minority samples generation approach. Instead of using prediction-oriented tests and the overall accuracy, the true positive rate (TPR), the true negative rate (TNR), G-mean, and F-score are used to measure the performance of default prediction models for imbalanced dataset. In this paper, we describe an empirical experiment that used a sampling of 14 default and 315 non-default listed real estate companies in China and report that most results using single prediction models with a balanced dataset generated better results than an imbalanced dataset.

Data mining approach to predicting user's past location

  • Lee, Eun Min;Lee, Kun Chang
    • Journal of the Korea Society of Computer and Information
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    • v.22 no.11
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    • pp.97-104
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    • 2017
  • Location prediction has been successfully utilized to provide high quality of location-based services to customers in many applications. In its usual form, the conventional type of location prediction is to predict future locations based on user's past movement history. However, as location prediction needs are expanded into much complicated cases, it becomes necessary quite frequently to make inference on the locations that target user visited in the past. Typical cases include the identification of locations that infectious disease carriers may have visited before, and crime suspects may have dropped by on a certain day at a specific time-band. Therefore, primary goal of this study is to predict locations that users visited in the past. Information used for this purpose include user's demographic information and movement histories. Data mining classifiers such as Bayesian network, neural network, support vector machine, decision tree were adopted to analyze 6868 contextual dataset and compare classifiers' performance. Results show that general Bayesian network is the most robust classifier.

Multi-Class SVM+MTL for the Prediction of Corporate Credit Rating with Structured Data

  • Ren, Gang;Hong, Taeho;Park, YoungKi
    • Asia pacific journal of information systems
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    • v.25 no.3
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    • pp.579-596
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    • 2015
  • Many studies have focused on the prediction of corporate credit rating using various data mining techniques. One of the most frequently used algorithms is support vector machines (SVM), and recently, novel techniques such as SVM+ and SVM+MTL have emerged. This paper intends to show the applicability of such new techniques to multi-classification and corporate credit rating and compare them with conventional SVM regarding prediction performance. We solve multi-class SVM+ and SVM+MTL problems by constructing several binary classifiers. Furthermore, to demonstrate the robustness and outstanding performance of SVM+MTL algorithm over other techniques, we utilized four typical multi-class processing methods in our experiments. The results show that SVM+MTL outperforms both conventional SVM and novel SVM+ in predicting corporate credit rating. This study contributes to the literature by showing the applicability of new techniques such as SVM+ and SVM+MTL and the outperformance of SVM+MTL over conventional techniques. Thus, this study enriches solving techniques for addressing multi-class problems such as corporate credit rating prediction.

A Study on the Prediction Model for Imported Vehicle Purchase Cancellation Using Machine Learning: Case of H Imported Vehicle Dealers (머신러닝을 이용한 국내 수입 자동차 구매 해약 예측 모델 연구: H 수입차 딜러사 대상으로)

  • Jung, Dong Kun;Lee, Jong Hwa;Lee, Hyun Kyu
    • The Journal of Information Systems
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    • v.30 no.2
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    • pp.105-126
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    • 2021
  • Purpose The purpose of this study is to implement a optimal machine learning model about the cancellation prediction performance in car sales business. It is to apply the data set of accumulated contract, cancellation, and sales information in sales support system(SFA) which is commonly used for sales, customers and inventory management by imported car dealers, to several machine learning models and predict performance of cancellation. Design/methodology/approach This study extracts 29,073 contracts, cancellations, and sales data from 2015 to 2020 accumulated in the sales support system(SFA) for imported car dealers and uses the analysis program Python Jupiter notebook in order to perform data pre-processing, verification, and modeling that is applying and learning to Machine learning model after then the final result was predicted using new data. Findings This study confirmed that cancellation prediction is possible by applying car purchase contract information to machine learning models. It proved the possibility of developing and utilizing a generalized predictive model by using data of imported car sales system with machine learning technology. It can reduce and prevent the sales failure as caring the potential lost customer intensively and it lead to increase sales revenue by predicting the cancellation possibility of individual customers.

A Study on the Performance Evaluation of Machine Learning for Predicting the Number of Movie Audiences (영화 관객 수 예측을 위한 기계학습 기법의 성능 평가 연구)

  • Jeong, Chan-Mi;Min, Daiki
    • The Journal of Society for e-Business Studies
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    • v.25 no.2
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    • pp.49-63
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    • 2020
  • The accurate prediction of box office in the early stage is crucial for film industry to make better managerial decision. With aims to improve the prediction performance, the purpose of this paper is to evaluate the use of machine learning methods. We tested both classification and regression based methods including k-NN, SVM and Random Forest. We first evaluate input variables, which show that reputation-related information generated during the first two-week period after release is significant. Prediction test results show that regression based methods provides lower prediction error, and Random Forest particularly outperforms other machine learning methods. Regression based method has better prediction power when films have small box office earnings. On the other hand, classification based method works better for predicting large box office earnings.

Applying a Novel Neuroscience Mining (NSM) Method to fNIRS Dataset for Predicting the Business Problem Solving Creativity: Emphasis on Combining CNN, BiLSTM, and Attention Network

  • Kim, Kyu Sung;Kim, Min Gyeong;Lee, Kun Chang
    • Journal of the Korea Society of Computer and Information
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    • v.27 no.8
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    • pp.1-7
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    • 2022
  • With the development of artificial intelligence, efforts to incorporate neuroscience mining with AI have increased. Neuroscience mining, also known as NSM, expands on this concept by combining computational neuroscience and business analytics. Using fNIRS (functional near-infrared spectroscopy)-based experiment dataset, we have investigated the potential of NSM in the context of the BPSC (business problem-solving creativity) prediction. Although BPSC is regarded as an essential business differentiator and a difficult cognitive resource to imitate, measuring it is a challenging task. In the context of NSM, appropriate methods for assessing and predicting BPSC are still in their infancy. In this sense, we propose a novel NSM method that systematically combines CNN, BiLSTM, and attention network for the sake of enhancing the BPSC prediction performance significantly. We utilized a dataset containing over 150 thousand fNIRS-measured data points to evaluate the validity of our proposed NSM method. Empirical evidence demonstrates that the proposed NSM method reveals the most robust performance when compared to benchmarking methods.

Impact of ICT Capability on Real Time Enterprise Capability and Supply Chain Performance (ICT 활용 역량이 실시간기업(RTE)역량과 공급사슬 성과에 미치는 영향)

  • Kim, Seungki;Park, SoHyun;Noh, Hyeyoung;Kim, Seung-Chul
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.43 no.1
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    • pp.110-122
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    • 2020
  • Many companies make considerable efforts in implementing supply chain management systems to increase their competitiveness. In particular, there are significant investments in their ICT (Information and Communication Technology) and supply chain. However, considerable diversity exists in how well firms have been able to assimilate ICT and leverage the business value of it. In addition, studies on supply chains, particularly Real Time Enterprise (RTE) competence, which is cited for rapid information sharing and dynamic capabilities for each role in the supply chain, are insufficient. The purpose of this paper is to explore and evaluate effect of ICT utilization capabilities, including 'ICT internal cooperative capabilities' and 'ICT operational flexibility capabilities', on RTE capabilities (flexibility, visibility and prediction) and supply chain performance. To validate the research model proposed in the study, survey was conducted on companies using ICT along the supply chain of manufacturing industries. 216 data were used, SPSS and AMOS were used for the analysis methods. Study results showed that ICT internal collaboration capabilities affect agility, one of RTE capabilities, but not visibility and prediction, and ICT operational flexibility capabilities have affected all three RTE capacities. And, RTE capabilities had a huge impact on supply chain performance as expected. In this paper, it has been found that the ICT capabilities in manufacturing are an important factor in improving RTE capabilities that are important in the supply chain and improving the performance of the supply chain.