Paper Info
Title
Detecting Changing Financial Relationships: A Self Organising Map Approach.
Abstract
In this paper Kohonen's Self Organising Map is used as a tool for detecting changing financial relationships. A Self Organising Map (SOM) is a dimension reducing transform that maps an high dimension information set to a two dimensional grid that is amenable to visualisation. This dimension reduction step is a key component of all financial analysis tasks. The potential of this method to identify structural change is investigated in the context of the problem of takeover target identification. Use of SOM analysis on two samples from different time periods charts temporal instability in the information sets of sufficient magnitude to breach the stationarity assumptions of standard statistical modelling methods, the results are confirmed by probabilistic regression analysis. This finding helps to explain the poor discriminatory power of many takeover target prediction exercises.
Year
DOI
Venue
2014
10.1007/978-3-319-28151-3_1
Lecture Notes in Business Information Processing
Keywords
Field
DocType
Self organising map,Financial stability,Takeover
Dimensionality reduction,Regression analysis,Computer science,Self-organizing map,Financial analysis,Artificial intelligence,Statistical model,Probabilistic logic,Finance,Information set,Machine learning,Grid
Conference
Volume
ISSN
Citations 
217
1865-1348
0
PageRank 
References 
Authors
0.34
0
2
Name
Order
Citations
PageRank
Maurice Peat122.74
Stewart Jones200.68