Application of artificial intelligence in identifying functional factors affecting financial health

Subject Areas : Financial engineering

parisa pazouki ¹ , fatemeh saraf ² , mahbobe jafari ³ , ali baghani ⁴

1 - PhD Student, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Assistant Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Assistant Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2021-02-11 Accepted : 2021-05-20 Published : 2021-09-23

Keywords: performance, Financial health, artificial intelligence approach,

Abstract :

Due to the importance of identifying the factors affecting financial health and predicting the degree of financial health of companies in this study, appropriate indicators have been identified to explain financial health and also predict the degree of financial health of Tehran Stock Exchange companies with an approach based on artificial intelligence. For this purpose, the information of 138 companies during the years 1390 to 1398 and Matlab software were used to test the research hypotheses. Accounting performance criteria used in this research: systematic risk, long-term debt to total assets ratio, current assets to total assets ratio, working capital ratio, instantaneous ratio, account receivable to total assets ratio, return on assets, company growth, growth Sales, are. The results showed that the artificial intelligence algorithm method with a power of more than 90% has the ability to predict the financial health of companies and also among the criteria of financial performance, company growth, return on assets, sales growth and current assets to assets to explain the financial health of companies have the highest impact.