Determining the model of financial performance of Tehran Stock Exchange companies based on data miningAbstract

Document Type : Original Manuscript

Authors

1 imanraeesi@atu.ac.ir

2 blue@atu.ac.ir

3 shohreh.zarkesh@gmail.com

Abstract

Determining the performance of companies using financial ratios has always been an interesting attraction for many researchers. Identifying the financial factors that have the greatest impact on corporate performance is one of the important issues for decision makers. In this research, by employing data mining standards, 4 decision making trees including CHAID, QUEST, C&R and C5.0 have been implemented and compared with evaluation criteria .Also, effective financial ratios have been determined. For this purpose a sample consisting of 30 ratios in 673 listed firms in Tehran Stock Exchange between years 1390 to 1393 have been considered. The results show that CHAID has the most accurate and precision in comparison with 4 decision trees. Of course other models have high reliability (above 80 %) and can be used all of them. 3 variables including “Net Profit to Sales”, “Loans interest rate” and “Total Asset Turnover” had the highest significance in predicting performance.

Keywords

References

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Iranian journal of management sciences
Volume 12, Issue 45
May 2017
Pages 81-100

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