Oditor, Vol. III, No. 01/2017

APPLYING THE MACHINE LEARNING METHOD IN PREDICTING
BUSINESS WINNERS VS. LOSERS THROUGH FINANCIAL REPORTS
by Slobodan Stanojević[52], Nenad Đorđević[53], Dejan Volf[54]

Date received: 18.09.2016.
Date accepted: 12.02.2017.
UDK: 005.521:334.7
005.311.12:519.85

Abstract

Predicting the management of Serbia’s economy is of great importance for investment activities which generate growth and development of a country. Official public data on the results of Serbia’s economy management are a necessary and sufficient basis for a fundamental analysis of financial reports in the field of prediction, as well as detecting potential losers vs. winners in the economy. The article performs an analysis of key ratio indicators that detect in a predictive fashion business losers or winners by applying artificial intelligence or machine learning (Data Mining). Quantitative analysis by way of machine learning is applied on balance sheets and income statements, more accurately from a representative sample of about 600 companies which are analyzed with significant results of absolute accuracy.

Key words: financial reports, winners vs. losers, prediction, ratio indicators, machine learning.

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[52]Slobodan Stanojević Ph.D., Associate Professor, Modern Business School, Terazije no. 27, 11000Belgrade, E-mail: slobodan.stanojevic@mbs.edu.rs
[53]Nenad Đorđević, SO Đorđević, Shopping Mall Medaković, Braće Srnić no. 23a, Belgrade.
[54]Dejan Volf, University Business Accademy, Novi Sad, Cvećarska no. 2