Abstract
The purpose of this paper is to provide evidence in context of Qatar Exchange (QE) with the respect to ability of a neural network hybrid model of accounting and market based measures to predict firm future financial sustainability, measured by firm future earnings and firm future sales growth rate. The results indicate that whereas accounting-based measures are better predictors for firm future earnings, market-based measures are more powerful predictors for future sales growth rate. Combining the accounting and market measures into a hybrid model improved the prediction of both measures of the firm future financial sustainability. However, the hybrid model achieved much better results for predicting firm earnings in comparison firm sales growth rate. We believed, the last finding is due to the noise embedded in the market variables, by their very nature.
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Amani, F., Fadlalla, A. (2015). Predictability of Firm Financial Sustainability Using Artificial Neural Networks: The Case of Qatar Exchange. In: Selvaraj, H., Zydek, D., Chmaj, G. (eds) Progress in Systems Engineering. Advances in Intelligent Systems and Computing, vol 366. Springer, Cham. https://doi.org/10.1007/978-3-319-08422-0_37
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DOI: https://doi.org/10.1007/978-3-319-08422-0_37
Publisher Name: Springer, Cham
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