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Industry Specific Cycles and Companies’ Financial Performance – Comparison with Self-Organizing Maps

Aapo Länsiluoto, Tomas Eklund, Barbro Back, Hannu Vanharanta, Ari Visa, Industry Specific Cycles and Companies’ Financial Performance – Comparison with Self-Organizing Maps. Benchmarking 11(4), 267–286, 2004.

Abstract:

Multilevel environment analysis is important for companies operating on
the global market. Previous studies have in general focused on one level
at a time, but the need to perform multilevel environment analysis has
also been stressed. Multilevel analysis can partly explain the
benchmarking gap between companies, as changing conditions in the upper
environment levels affect lower levels. In today’s information-rich era,
it is difficult to conduct multilevel analysis without suitable
computational tools. This paper illustrates how the self-organizing map
can be used for the simultaneous comparison of industry-level changes
and financial performance of pulp and paper companies. The study shows
the importance of simultaneous analysis, as some simultaneous changes
were found at both industry and corporate levels. Also found were some
industry-specific explanatory factors for good (Scandinavian companies)
and poor (Japanese companies) financial performance. The results
indicate that the self-organizing map could be a suitable tool when the
purpose is to visualize large masses of multilevel data from high-
dimensional databases.

BibTeX entry:

@ARTICLE{jLaEkBaVaVi04a,
  title = {Industry Specific Cycles and Companies’ Financial Performance – Comparison with Self-Organizing Maps},
  author = {Länsiluoto, Aapo and Eklund, Tomas and Back, Barbro and Vanharanta, Hannu and Visa, Ari},
  journal = {Benchmarking},
  volume = {11},
  number = {4},
  pages = {267–286},
  year = {2004},
  keywords = {Financial performance, Industrial performance, Corporate governance,},
}

Belongs to TUCS Research Unit(s): Data Mining and Knowledge Management Laboratory

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