Predicting Corporate Financial Indicators Using the Conditional Average Estimator and Genetic Metaheuristic Algorithms

Subject Areas : Journal of Investment Knowledge

Ebrahim Alizadeh ¹ (Department of Accounting, Kish International Unit, Islamic Azad University, Kish Island, Iran)
Hamidreza Vakilifard ² (Associate Professor, Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran)
mohsen hamidian ³ (Asistant Professor of Accounting, Islamic Azad University Tehran South, Iran)

Received: 2020-02-05 Accepted : 2020-02-09 Published : 2022-06-22

Keywords: Keywords: Financial Indices, Conditional Average estimator, Genetic algorithm,

Abstract :

AbstractPredicting the financial position of companies based on financial indicators is one of the most important issues of interest to investors, creditors and other stakeholders of the company such as suppliers or retailers. Because, evaluating a company's financial position before making any investment or lending decisions seems necessary to prevent losses. The purpose of this study was to predict the financial indices of companies using the conditional average estimator method (CAE) and genetic algorithm (GA). The research method was DM-CRISP and the financial data of 130 stock companies over 10 years from 2009 to 2018 were analyzed. The results showed that the conditional average estimator method has high accuracy and ability in modeling. Also, the use of genetic algorithm in combination increases the accuracy of prediction. Capital Market Operators Can Use Research Results to Better Predict Corporate Financial and Performance Indicators.

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