An efficient graph‐based peer selection method for financial statements

Sander Noels, Simon De Ridder, Sébastien Viaene and Tijl De Bie

Intelligent Systems in Accounting, Finance and Management, 2023, vol. 30, issue 3, 120-136

Abstract: 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.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/isaf.1539

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:isacfm:v:30:y:2023:i:3:p:120-136

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1099-1174

Access Statistics for this article

More articles in Intelligent Systems in Accounting, Finance and Management from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().