ANALYSIS MODEL OF THE COMPANY'S FINANCIAL PERFORMANCE BASED ON NEURAL NETWORK

• Kurochkina, I.
• Shuvalova, E.
• Mamatova, L.
• Kalinin, I.

Abstract:

Currently it became obvious common trends in the development of management accounting associated with the rapid progress of information technologies and the use of complex algorithms. Achievements in this area allow to create a company's information environment in which the digital data are converted into qualitative information in real time. The article proposes an analysis model of the company' financial performance, based on neural network method to establish complex cause and effect relationships. The key point of the proposed model is to separate the two types of parameters: conditional-ideal and real. First create ideal conditions for the functioning of the company (products are sold instantly in full, its cost is minimal, etc.). Second drive ideal conditions for real (low wages reduces productivity, lack of investment in modernization leads to the weakening position in the market, etc.). The created neural network consists of three layers: input, intermediate, output. The data supplied to the input of the neural network is processed groups in mind the large differences in dimension. After processing in the hidden layer, the data are fed to the output layer. As a result of the functioning of the neural network management report is formed on the financial performance of the company. The advantage of the methods is the ability to keep track of changes in the input data and the resulting index online; to forecast future periods.

SGEM Research areas:

• SOCIAL SCIENCES: Section Economics and Finance

Year:

2016

Type of Publication:

In Proceedings

Keywords:

management accounting; analysis model of the financial performance; neural networks; management report.

Volume:

16

SGEM Book title:

3rd International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2016

Book number:

2.3

SGEM Series:

International Multidisciplinary Scientific Conference on Social Sciences and Arts-SGEM

Pages:

49-56

Publisher address:

51 Al. Malinov blvd, Sofia, 1712, Bulgaria

SGEM supporters:

SWS Scholarly Society; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci & Arts; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; European Acad Sci, Arts & Letters; Acad Fine Arts Zagreb Croatia; C

Period:

24-30 August, 2016

ISBN:

978-619-7105-74-2

ISSN:

2367-5659

Conference:

3rd International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2016, 24-30 August, 2016

DOI:

10.5593/SGEMSOCIAL2016/B23/S06.007