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Capital Maintenance Evolution using Outputs from Accounting System

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  • Renata PakÅ¡iová
  • Denisa Oriskóová

Abstract

Decision making based on information provided by an enterprise accounting information system, is essential for sustainable development and enterprises growth. Besides widely used prediction models for an assessment of the financial distress, there is also a useful indicator of a capital maintenance evolution, that provides a deeper view to the enterprise growth or decline compared to traditional performance measures. The aim of the contribution is to develop a model for assessment of a capital maintenance evolution using available accounting outputs. Our constructed model and coefficient for a capital maintenance evolution CMEOPNN has been developed using the multi-layer (triple) artificial neural network with a feedforward signal transmission by a backpropagation method and an activation function is a sigmoid function. For construction our model we used 663 Slovak enterprises sample out of 5 most frequented industry sectors with a unified structure of the provided information in the financial statements for 2014-2017. JEL Codes - M21; M41; G30

Suggested Citation

  • Renata PakÅ¡iová & Denisa Oriskóová, 2020. "Capital Maintenance Evolution using Outputs from Accounting System," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(3), pages 311-331, September.
    • Handle: RePEc:aic:saebjn:v:67:y:2020:i:3:p:311-331:n:171
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    References listed on IDEAS

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    More about this item

    Keywords

    evaluation of capital maintenance; business performance; financial statements; decision-making; information system;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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