Predicting fraudulent financial reporting using artificial neural network

2017 ◽  
Vol 24 (2) ◽  
pp. 362-387 ◽  
Author(s):  
Normah Omar ◽  
Zulaikha ‘Amirah Johari ◽  
Malcolm Smith
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Financial Reporting ◽  
Risk Indicators ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Market Capitalization ◽  
Fraud Risk ◽  
Small Market ◽  
Artificial Neural

Purpose This paper aims to explore the effectiveness of an artificial neural network (ANN) in predicting fraudulent financial reporting in small market capitalization companies in Malaysia. Design/methodology/approach Based on the concepts of ANN, a mathematical model was developed to compare non-fraud and fraud companies selected from among small market capitalization companies in Malaysia; the fraud companies had already been charged by the Securities Commission for falsification of financial statements. Ten financial ratios are used as fraud risk indicators to predict fraudulent financial reporting using ANN. Findings The findings indicate that the proposed ANN methodology outperforms other statistical techniques widely used for predicting fraudulent financial reporting. Originality/value The study is one of few to adopt the ANN approach for the prediction of financial reporting fraud.

Dynamic prediction of Indian stock market: an artificial neural network approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Himanshu Goel ◽  
Narinder Pal Singh
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Stock Market ◽  
Institutional Investors ◽  
Time Series Data ◽  
Gradient Algorithm ◽  
Series Data ◽  
Content Type ◽  
Artificial Neural ◽  
Indian Stock Market

Purpose Artificial neural network (ANN) is a powerful technique to forecast the time series data such as the stock market. Therefore, this study aims to predict the Indian stock market closing price using ANNs. Design/methodology/approach The input variables identified from the literature are some macroeconomic variables and a global stock market factor. The study uses an ANN with Scaled Conjugate Gradient Algorithm (SCG) to forecast the Bombay Stock Exchange (BSE) Sensex. Findings The empirical findings reveal that the ANN model is able to achieve 93% accuracy in predicting the BSE Sensex closing prices. Moreover, the results indicate that the Morgan Stanley Capital International world index is the most important variable and the index of industrial production is the least important in predicting Sensex. Research limitations/implications The findings of the study have implications for the investors of all categories such as foreign institutional investors, domestic institutional investors and investment houses. Originality/value The novelty of this study lies in the fact that there are hardly any studies that use ANN to forecast the Indian stock market using macroeconomic indicators.

Improving the electromagnetic compatibility of electronic products by using response surface methodology and artificial neural network

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ching-Hsiang Chen ◽  
Chien-Yi Huang ◽  
Yan-Ci Huang
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Response Surface Methodology ◽  
Response Surface ◽  
Electromagnetic Compatibility ◽  
Heat Dissipation ◽  
Optimal Parameter ◽  
Content Type ◽  
Early Stages ◽  
Artificial Neural

Purpose The purpose of this study is to use the Taguchi Method for parametric design in the early stages of product development. electromagnetic compatibility (EMC) issues can be considered in the early stages of product design to reduce counter-measure components, product cost and labor consumption increases due to a number of design changes in the R&D cycle and to accelerate the R&D process. Design/methodology/approach The three EMC characteristics, including radiated emission, conducted emission and fast transient impulse immunity of power, are considered response values; control factors are determined with respect to the relevant parameters for printed circuit board and mechanical design of the product and peripheral devices used in conjunction with the product are considered as noise factors. The optimal parameter set is determined by using the principal component gray relational analysis in conjunction with both response surface methodology and artificial neural network. Findings Market specifications and cost of components are considered to propose an optimal parameter design set with the number of grounded screw holes being 14, the size of the shell heat dissipation holes being 3 mm and the arrangement angle of shell heat dissipation holes being 45 degrees, to dispose of 390 O filters on the noise source. Originality/value The optimal parameter set can improve EMC effectively to accommodate the design specifications required by customers and pass test regulations.

Integrating artificial neural network and imperialist competitive algorithm (ICA), to predict the energy consumption for land leveling

2017 ◽  
Vol 11 (4) ◽  
pp. 522-540 ◽  
Author(s):  
Isham Alzoubi ◽  
Mahmoud Delavar ◽  
Farhad Mirzaei ◽  
Babak Nadjar Arrabi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Energy Consumption ◽  
Compressibility Factor ◽  
Imperialist Competitive Algorithm ◽  
Content Type ◽  
Competitive Algorithm ◽  
Land Leveling ◽  
Soil Compressibility ◽  
Artificial Neural

Purpose This work aims to determine the best linear model using an artificial neural network (ANN) with the imperialist competitive algorithm (ICA-ANN) and ANN to predict the energy consumption for land leveling. Design/methodology/approach Using ANN, integrating artificial neural network and imperialist competitive algorithm (ICA-ANN) and sensitivity analysis (SA) can lead to a noticeable improvement in the environment. In this research, effects of various soil properties such as embankment volume, soil compressibility factor, specific gravity, moisture content, slope, sand per cent and soil swelling index on energy consumption were investigated. Findings According to the results, 10-8-3-1, 10-8-2-5-1, 10-5-8-10-1 and 10-6-4-1 multilayer perceptron network structures were chosen as the best arrangements and were trained using the Levenberg–Marquardt method as the network training function. Sensitivity analysis revealed that only three variables, namely, density, soil compressibility factor and cut-fill volume (V), had the highest sensitivity on the output parameters, including labor energy, fuel energy, total machinery cost and total machinery energy. Based on the results, ICA-ANN had a better performance in the prediction of output parameters in comparison with conventional methods such as ANN or particle swarm optimization (PSO)-ANN. Statistical factors of root mean square error (RMSE) and correlation coefficient (R2) illustrate the superiority of ICA-ANN over other methods by values of about 0.02 and 0.99, respectively. Originality/value A limited number of research studies related to energy consumption in land leveling have been done on energy as a function of volume of excavation and embankment. However, in this research, energy and cost of land leveling are shown to be functions of all the properties of the land, including the slope, coefficient of swelling, density of the soil, soil moisture and special weight dirt. Therefore, the authors believe that this paper contains new and significant information adequate for justifying publication in an international journal.

Predicting the ground vibration induced by mine blasting using imperialist competitive algorithm

2018 ◽  
Vol 35 (4) ◽  
pp. 1774-1787 ◽  
Author(s):  
Katayoun Behzadafshar ◽  
Fahimeh Mohebbi ◽  
Mehran Soltani Tehrani ◽  
Mahdi Hasanipanah ◽  
Omid Tabrizi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Ground Vibration ◽  
Imperialist Competitive Algorithm ◽  
Empirical Models ◽  
Coefficient Of Determination ◽  
Content Type ◽  
Competitive Algorithm ◽  
Spacing Ratio ◽  
Artificial Neural

PurposeThe purpose of this paper is to propose three imperialist competitive algorithm (ICA)-based models for predicting the blast-induced ground vibrations in Shur River dam region, Iran.Design/methodology/approachFor this aim, 76 data sets were used to establish the ICA-linear, ICA-power and ICA-quadratic models. For comparison aims, artificial neural network and empirical models were also developed. Burden to spacing ratio, distance between shot points and installed seismograph, stemming, powder factor and max charge per delay were used as the models’ input, and the peak particle velocity (PPV) parameter was used as the models’ output.FindingsAfter modeling, the various statistical evaluation criteria such as coefficient of determination (R2) were applied to choose the most precise model in predicting the PPV. The results indicate the ICA-based models proposed in the present study were more acceptable and reliable than the artificial neural network and empirical models. Moreover, ICA linear model with theR2 of 0.939 was the most precise model for predicting the PPV in the present study.Originality/valueIn the present paper, the authors have proposed three novel prediction methods based on ICA to predict the PPV. In the next step, we compared the performance of the proposed ICA-based models with the artificial neural network and empirical models. The results indicated that the ICA-based models proposed in the present paper were superior in terms of high accuracy and have the capacity to generalize.

Artificial neural network and regression models for prediction of sewing thread consumption for multilayered fabric assembly at lockstitch 301 seam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Vaseem Chavhan ◽  
M. Ramesh Naidu ◽  
Hayavadana Jamakhandi
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Regression Model ◽  
Regression Models ◽  
Network Models ◽  
Quadratic Regression ◽  
Neural Network Models ◽  
Content Type ◽  
Sewing Thread ◽  
Artificial Neural

Purpose This paper aims to propose the artificial neural network (ANN) and regression models for the estimation of the thread consumption at multilayered seam assembly stitched with lock stitch 301. Design/methodology/approach In the present study, the generalized regression and neural network models are developed by considering the fabric types: woven, nonwoven and multilayer combination thereof, with basic sewing parameters: sewing thread linear density, stitch density, needle count and fabric assembly thickness. The network with feed-forward backpropagation is considered to build the ANN, and the training function trainlm of MATLAB software is used to adjust weight and basic values according to the optimization of Levenberg Marquardt. The performance of networks measured in terms of the mean squared error and the layer output is set according to the sigmoid transfer function. Findings The proposed ANN and regression model are able to predict the thread consumption with more accuracy for multilayered seam assembly. The predictability of thread consumption from available geometrical models, regression models and industrial empirical techniques are compared with proposed linear regression, quadratic regression and neural network models. The proposed quadratic regression model showed a good correlation with practical thread consumption value and more accuracy in prediction with an overall 4.3% error, as compared to other techniques for given multilayer substrates. Further, the developed ANN network showed good accuracy in the prediction of thread consumption. Originality/value The estimation of thread consumed while stitching is the prerequisite of the garment industry for inventory management especially with the introduction of the costly high-performance sewing thread. In practice, different types of fabrics are stitched at multilayer combinations at different locations of the stitched product. The ANN and regression models are developed for multilayered seam assembly of woven and nonwoven fabric blend composition for better prediction of thread consumption.

Effective design and development of hybrid ABC-CSO-based capacitor placement with load forecasting based on artificial neural network

2019 ◽  
Vol 39 (5) ◽  
pp. 917-930 ◽  
Author(s):  
Sarika Sharma ◽  
Smarajit Ghosh
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Radial Distribution ◽  
Power Loss ◽  
Distribution Network ◽  
Load Forecasting ◽  
Distribution Networks ◽  
Content Type ◽  
Power Loss Reduction ◽  
Artificial Neural

Purpose This paper aims to develop a capacitor position in radial distribution networks with a specific end goal to enhance the voltage profile, diminish the genuine power misfortune and accomplish temperate sparing. The issue of the capacitor situation in electric appropriation systems incorporates augmenting vitality and peak power loss by technique for capacitor establishments. Design/methodology/approach This paper proposes a novel strategy using rough thinking to pick reasonable applicant hubs in a dissemination structure for capacitor situation. Voltages and power loss reduction indices of distribution networks hubs are shown by fuzzy enrollment capacities. Findings A fuzzy expert system containing a course of action of heuristic rules is then used to ascertain the capacitor position appropriateness of each hub in the circulation structure. The sizing of capacitor is solved by using hybrid artificial bee colony–cuckoo search optimization. Practical implications Finally, a short-term load forecasting based on artificial neural network is evaluated for predicting the size of the capacitor for future loads. The proposed capacitor allocation is implemented on 69-node radial distribution network as well as 34-node radial distribution network and the results are evaluated. Originality/value Simulation results show that the proposed method has reduced the overall losses of the system compared with existing approaches.

Machine learning-based prediction of component self-alignment in vapour phase and infrared soldering

2019 ◽  
Vol 31 (3) ◽  
pp. 163-168 ◽  
Author(s):  
Oliver Krammer ◽  
Péter Martinek ◽  
Balazs Illes ◽  
László Jakab
Keyword(s):  
Neural Network ◽  
Machine Learning ◽  
Artificial Neural Network ◽  
Prediction Method ◽  
Absolute Error ◽  
Vapour Phase ◽  
The Self ◽  
Phase Method ◽  
Content Type ◽  
Artificial Neural

Purpose This paper aims to investigate the self-alignment of 0603 size (1.5 × 0.75 mm) chip resistors, which were soldered by infrared or vapour phase soldering. The results were used for establishing an artificial neural network for predicting the component movement during the soldering. Design/methodology/approach The components were soldered onto an FR4 testboard, which was designed to facilitate the measuring of the position of the components both prior to and after the soldering. A semi-automatic placement machine misplaced the components intentionally, and the self-alignment ability was determined for soldering techniques of both infrared and vapour phase soldering. An artificial neural network-based prediction method was established, which is able to predict the position of chip resistors after soldering as a function of component misplacement prior to soldering. Findings The results showed that the component can self-align from farer distances by using vapour phase method, even from relative misplacement of 50 per cent parallel to the shorter side of the component. Components can self-align from a relative misplacement only of 30 per cent by using infrared soldering method. The established artificial neural network can predict the component self-alignment with an approximately 10-20 per cent mean absolute error. Originality/value It was proven that the vapour phase soldering method is more stable from the component’s self-alignment point of view. Furthermore, machine learning-based predictors can be applied in the field of reflow soldering technology, and artificial neural networks can predict the component self-alignment with an appropriately low error.

Using an artificial neural network for estimating sustainable development goals index

2020 ◽  
Vol 31 (4) ◽  
pp. 1023-1037 ◽  
Author(s):  
Seyed-Hadi Mirghaderi
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Artificial Neural Network ◽  
Sustainable Development ◽  
Artificial Neural Networks ◽  
Sustainable Development Goals ◽  
Content Type ◽  
The Sustainable Development ◽  
Development Goals ◽  
Artificial Neural

PurposeThis paper aims to develop a simple model for estimating sustainable development goals index using the capabilities of artificial neural networks.Design/methodology/approachSustainable development has three pillars, including social, economic and environmental pillars. Three clusters corresponding to the three pillars were created by extracting sub-indices of three 2018 global reports and performing cluster analysis on the correlation matrix of sub-indices. By setting the sustainable development goals index as the target variable and selecting one indicator from each cluster as input variables, 20 artificial neural networks were run 30 times.FindingsArtificial neural networks with seven nodes in one hidden layer can estimate sustainable development goals index by using just three inputs, including ecosystem vitality, human capital and gross national income per capita. There is an excellent similarity (>95%) between the results of the artificial neural network and the sustainable development goals index.Practical implicationsInstead of calculating 232 indicators for determining the value of sustainable development goals index, it is possible to use only three sub-indices, but missing 5% of precision, by using the proposed artificial neural network model.Originality/valueThe study provides additional information on the estimating of sustainable development and proposes a new simple method for estimating the sustainable development goals index. It just uses three sub-indices, which can be retrieved from three global reports.

CFD-based blade shape optimization of MGT-70(3)axial flow compressor

2019 ◽  
Vol 30 (6) ◽  
pp. 3307-3321 ◽  
Author(s):  
Mohammad Reza Pakatchian ◽  
Hossein Saeidi ◽  
Alireza Ziamolki
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Shape Optimization ◽  
Fluid Dynamic ◽  
Axial Compressor ◽  
Axial Flow ◽  
Design Parameters ◽  
Content Type ◽  
Wide Range ◽  
Artificial Neural

Purpose This study aims at enhancing the performance of a 16-stage axial compressor and improving the operating stability. The adopted approaches for upgrading the compressor are artificial neural network, optimization algorithms and computational fluid dynamics. Design/methodology/approach The process starts with developing several data sets for certain 2D sections by means of training several artificial neural networks (ANNs) as surrogate models. Afterward, the trained ANNs are applied to the 3D shape optimization along with parametrization of the blade stacking line. Specifying the significant design parameters, a wide range of geometrical variations are considered by implementation of appropriate number of design variables. The optimized shapes are analyzed by applying computational fluid dynamic to obtain the best geometry. Findings 3D optimal results show improvements, especially in the case of decreasing or elimination of near walls corner separations. In addition, in comparison with the base geometry, numerical optimization shows an increase of 1.15 per cent in total isentropic efficiency in the first four stages, which results in 0.6 per cent improvement for the whole compressor, even while keeping the rest of the stages unchanged. To evaluate the numerical results, experimental data are compared with obtained data from simulation. Based on the results, the highest absolute relative deviation between experimental and numerical static pressure is approximately 7.5 per cent. Originality/value The blades geometry of an axial compressor used in a heavy-duty gas turbine is optimized by applying artificial neural network, and the results are compared with the base geometry numerically and experimentally.

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