Learning Bayesian networks using various datasources and applications to financial analysis

Abstract

 This paper illustrates opportunities of using Bayesian networks in fundamental financial analysis. In it, we will present an application based on construction of a Bayesian network from a database of financial reports collected for the years 1993–97. We will focus on one sector of the Czech economy – engineering – presenting an example that use the constructed Bayesian network in the sector financial analysis. In addition, we will deal with the rating analysis and show how to perform this kind of analysis by means of neural and Bayesian networks.