An Evaluation of the Corporate Takeover Model Using Neural Networks

摘要: Neural networks have been found to be promising in financial prediction tasks like bankruptcy and loan defaults. Their use the capital markets is relatively new, although they used with some success picking undervalued stocks. Accurate of corporate takeover targets results high payoffs. Researchers statistical procedures logistic regression little predicting targets. We neural that are capable producing complex mapping functions predict mergers. develop several network models carefully controlling for overfitting. Our indicate map data very well, do not merger significantly better than regression. This strongly suggests mergers inadequate. Firms should approach development cautiously identify other factors more likely Attempts apply analysis techniques existing will most produce similar results.