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An efficient graph-based peer selection method for financial statements

delete2023-07-05
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OA
AI
S
Sander Noels *
S
Simon De Ridder
S
S. Viaene
T
Tijl De Bie
DOI:10.1002/isaf.1539delete
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Abstract

Abstract

En 中文
Comparing companies can be useful for various purposes. Despite the widespread use of industry classification systems as a peer selection standard, these have been criticized for various reasons. Financial statements, however, offer a promising alternative to such classification systems. They are standardized, widely available, and offer deep insights into the nature of the company. In this paper, we present a graph distance metric for financial statements using the earth mover's distance. When using the distance metric on real-world tasks such as peer identification and industry classification, it shows promising results in terms of accuracy and computational efficiency.
Keywords:
company embedding
financial statements
graph distance metric
industry classification
peer companies
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Journal

I
Intelligent Systems in Accounting Finance and Management
IF:
3.7
Papers:
92
Citations:
469

Organization

G
Ghent University
Scholars:
5.2W
Papers: 4.5W
Citations: 5.5W