This paper presents evidence suggesting that artificial neural networks approach (ANNs) outperform traditional statistical methods and can forecast equity premiums reasonably well. The study replicates out-of-sample estimates of regression using ANN with economic fundamentals as inputs. The...

A data processing procedure, DEA (Data Envelopment Analysis) is described as as an analytical tool in audit engagement. DEA receives data inputs from from financial statements of a plurality of clients, constructs efficiency frontiers and evaluates relative income efficiencies. DEA can be used...

We propose a framework for an ensemble bankruptcy classifier that uses if-then rules to combine the outputs from a heterogeneous set classifiers. A genetic algorithm (GA) induces the rules using an asymmetric, cost-sensitive fitness function that includes accuracy and misclassification costs....