The use of machine learning algorithms for the study of business profitability: a new approach based on preferences

Javier Andrés Domingo ^[1] ; Pedro Lorca Fernández ^[1] ; Antonio Bahamonde Rionda ^[1] ; J. J. del Coz
1. [1] Universidad de Oviedo
  
  Universidad de Oviedo
  
  Oviedo, España
Localización: The International Journal of Digital Accounting Research, ISSN 1577-8517, Vol. 4, Nº. 8, 2004, págs. 99-124
Idioma: inglés
DOI: 10.4192/1577-8517-v4_4
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Resumen
- In recent years, researchers in the Field of Artificial Intelligence have developed a learning technique, namely, preference learning, that is suitable to be used for economic analysis. The present research empirically tests one of these models, which consists of a combination of LACE and RFE algorithms. The problem of forecasting the profitability of Spanish companies upon the basis of a set of financial ratios is used as a benchmark. The model provides forecasted rankings, which are a kind of information that is more useful for the economic analysts than the forecasted class memberships that traditional machine learning techniques provide.