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Open Access
Article
Publication date: 25 January 2023

Mikko Ranta and Mika Ylinen

This study aims to examine the association between board gender diversity (BGD) and workplace diversity and the relative importance of various board and firm characteristics in…

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Abstract

Purpose

This study aims to examine the association between board gender diversity (BGD) and workplace diversity and the relative importance of various board and firm characteristics in predicting diversity.

Design/methodology/approach

With a novel machine learning (ML) approach, this study models the association between three workplace diversity variables and BGD using a social media data set of approximately 250,000 employee reviews. Using the tools of explainable artificial intelligence, the authors interpret the results of the ML model.

Findings

The results show that BGD has a strong positive association with the gender equality and inclusiveness dimensions of corporate diversity culture. However, BGD is found to have a weak negative association with age diversity in a company. Furthermore, the authors find that workplace diversity is an important predictor of firm value, indicating a possible channel on how BGD affects firm performance.

Originality/value

The effects of BGD on workplace diversity below management levels are mainly omitted in the current corporate governance literature. Furthermore, existing research has not considered different dimensions of this diversity and has mainly focused on its gender aspects. In this study, the authors address this research problem and examine how BGD affects different dimensions of diversity at the overall company level. This study reveals important associations and identifies key variables that should be included as a part of theoretical causal models in future research.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 4 October 2019

Rahul Priyadarshi, Akash Panigrahi, Srikanta Routroy and Girish Kant Garg

The purpose of this study is to select the appropriate forecasting model at the retail stage for selected vegetables on the basis of performance analysis.

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Abstract

Purpose

The purpose of this study is to select the appropriate forecasting model at the retail stage for selected vegetables on the basis of performance analysis.

Design/methodology/approach

Various forecasting models such as the Box–Jenkins-based auto-regressive integrated moving average model and machine learning-based algorithms such as long short-term memory (LSTM) networks, support vector regression (SVR), random forest regression, gradient boosting regression (GBR) and extreme GBR (XGBoost/XGBR) were proposed and applied (i.e. modeling, training, testing and predicting) at the retail stage for selected vegetables to forecast demand. The performance analysis (i.e. forecasting error analysis) was carried out to select the appropriate forecasting model at the retail stage for selected vegetables.

Findings

From the obtained results for a case environment, it was observed that the machine learning algorithms, namely LSTM and SVR, produced the better results in comparison with other different demand forecasting models.

Research limitations/implications

The results obtained from the case environment cannot be generalized. However, it may be used for forecasting of different agriculture produces at the retail stage, capturing their demand environment.

Practical implications

The implementation of LSTM and SVR for the case situation at the retail stage will reduce the forecast error, daily retail inventory and fresh produce wastage and will increase the daily revenue.

Originality/value

The demand forecasting model selection for agriculture produce at the retail stage on the basis of performance analysis is a unique study where both traditional and non-traditional models were analyzed and compared.

Article
Publication date: 26 September 2022

Christian Nnaemeka Egwim, Hafiz Alaka, Oluwapelumi Oluwaseun Egunjobi, Alvaro Gomes and Iosif Mporas

This study aims to compare and evaluate the application of commonly used machine learning (ML) algorithms used to develop models for assessing energy efficiency of buildings.

Abstract

Purpose

This study aims to compare and evaluate the application of commonly used machine learning (ML) algorithms used to develop models for assessing energy efficiency of buildings.

Design/methodology/approach

This study foremostly combined building energy efficiency ratings from several data sources and used them to create predictive models using a variety of ML methods. Secondly, to test the hypothesis of ensemble techniques, this study designed a hybrid stacking ensemble approach based on the best performing bagging and boosting ensemble methods generated from its predictive analytics.

Findings

Based on performance evaluation metrics scores, the extra trees model was shown to be the best predictive model. More importantly, this study demonstrated that the cumulative result of ensemble ML algorithms is usually always better in terms of predicted accuracy than a single method. Finally, it was discovered that stacking is a superior ensemble approach for analysing building energy efficiency than bagging and boosting.

Research limitations/implications

While the proposed contemporary method of analysis is assumed to be applicable in assessing energy efficiency of buildings within the sector, the unique data transformation used in this study may not, as typical of any data driven model, be transferable to the data from other regions other than the UK.

Practical implications

This study aids in the initial selection of appropriate and high-performing ML algorithms for future analysis. This study also assists building managers, residents, government agencies and other stakeholders in better understanding contributing factors and making better decisions about building energy performance. Furthermore, this study will assist the general public in proactively identifying buildings with high energy demands, potentially lowering energy costs by promoting avoidance behaviour and assisting government agencies in making informed decisions about energy tariffs when this novel model is integrated into an energy monitoring system.

Originality/value

This study fills a gap in the lack of a reason for selecting appropriate ML algorithms for assessing building energy efficiency. More importantly, this study demonstrated that the cumulative result of ensemble ML algorithms is usually always better in terms of predicted accuracy than a single method.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 16 November 2022

Zhenkun Liu, Ping Jiang, Jianzhou Wang, Zhiyuan Du, Xinsong Niu and Lifang Zhang

This study/paper aims to reach the core objective of hospitality order cancellation prediction (HOCP), that is, to identify potential cancellers from many customer bases, thereby…

Abstract

Purpose

This study/paper aims to reach the core objective of hospitality order cancellation prediction (HOCP), that is, to identify potential cancellers from many customer bases, thereby enhancing the effectiveness of customer retention campaigns. However, few studies have focused on predicting hospitality order cancellation.

Design/methodology/approach

A novel profit-driven model for predicting hospitality order cancellation is proposed to bridge this research gap. The authors construct profit-driven extreme gradient boosting (XGBoost) based on a grid search on HOCP to maximize profit by selecting optimal hyperparameters of XGBoost.

Findings

Real-world data set is analyzed, and the proposed model yields more profits than other predictive models. Sensitivity analysis proves that the proposed model is robust to the key hyperparameter and application scenario. Furthermore, some preventive measures based on visual analysis results are provided to reduce the cancelled probability of orders.

Research limitations/implications

This research will help hotel managers to transfer the modeling goal to profit orientation and encourage relevant researchers to interpret the prediction results of models for hotel order cancellation prediction in a post hoc manner. Besides, the proposed model can be applied to various enterprises with different average order profits and help managers optimize revenue management.

Originality/value

This research expands the relevant literature and offers guidance for predicting hospitality order cancellation from a profit-driven perspective at the customer level. The proposed model can provide macro-control to hotel managers and obtain the most satisfactory profits in micro-control.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 March 2023

Farouq Sammour, Heba Alkailani, Ghaleb J. Sweis, Rateb J. Sweis, Wasan Maaitah and Abdulla Alashkar

Demand forecasts are a key component of planning efforts and are crucial for managing core operations. This study aims to evaluate the use of several machine learning (ML…

Abstract

Purpose

Demand forecasts are a key component of planning efforts and are crucial for managing core operations. This study aims to evaluate the use of several machine learning (ML) algorithms to forecast demand for residential construction in Jordan.

Design/methodology/approach

The identification and selection of variables and ML algorithms that are related to the demand for residential construction are indicated using a literature review. Feature selection was done by using a stepwise backward elimination. The developed algorithm’s accuracy has been demonstrated by comparing the ML predictions with real residual values and compared based on the coefficient of determination.

Findings

Nine economic indicators were selected to develop the demand models. Elastic-Net showed the highest accuracy of (0.838) versus artificial neural networkwith an accuracy of (0.727), followed by Eureqa with an accuracy of (0.715) and the Extra Trees with an accuracy of (0.703). According to the results of the best-performing model forecast, Jordan’s 2023 first-quarter demand for residential construction is anticipated to rise by 11.5% from the same quarter of the year 2022.

Originality/value

The results of this study extend to the existing body of knowledge through the identification of the most influential variables in the Jordanian residential construction industry. In addition, the models developed will enable users in the fields of construction engineering to make reliable demand forecasts while also assisting in effective financial decision-making.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 15 February 2024

Xin Huang, Ting Tang, Yu Ning Luo and Ren Wang

This study aims to examine the impact of board characteristics on firm performance while also exploring the influential mechanisms that help Chinese listed companies establish…

Abstract

Purpose

This study aims to examine the impact of board characteristics on firm performance while also exploring the influential mechanisms that help Chinese listed companies establish effective boards of directors and strengthen their corporate governance mechanisms.

Design/methodology/approach

This paper uses machine learning methods to investigate the predictive ability of the board of directors' characteristics on firm performance based on the data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges in China during 2008–2021. This study further analyzes board characteristics with relatively strong predictive ability and their predictive models on firm performance.

Findings

The results show that nonlinear machine learning methods are more effective than traditional linear models in analyzing the impact of board characteristics on Chinese firm performance. Among the series characteristics of the board of directors, the contribution ratio in prediction from directors compensation, director shareholding ratio, the average age of directors and directors' educational level are significant, and these characteristics have a roughly nonlinear correlation to the prediction of firm performance; the improvement of the predictive ability of board characteristics on firm performance in state-owned enterprises in China performs better than that in private enterprises.

Practical implications

The findings of this study provide valuable suggestions for enriching the theory of board governance, strengthening board construction and optimizing the effectiveness of board governance. Furthermore, these impacts can serve as a valuable reference for board construction and selection, aiding in the rational selection of boards to establish an efficient and high-performing board of directors.

Originality/value

The study findings unequivocally demonstrate the superiority of nonlinear machine learning approaches over traditional linear models in examining the relationship between board characteristics and firm performance in China. Within the suite of board characteristics, director compensation, shareholding ratio, average age and educational level are particularly noteworthy, consistently demonstrating strong, nonlinear associations with firm performance. Within the suite of board characteristics, director compensation, shareholding ratio, average age and educational level are particularly noteworthy, consistently demonstrating strong, nonlinear associations with firm performance. The study reveals that the predictive performance of board attributes is generally more robust for state-owned enterprises in China in comparison to their counterparts in the private sector.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Open Access
Article
Publication date: 31 March 2022

Ilan Alon, Vanessa P.G. Bretas, Alex Sclip and Andrea Paltrinieri

This study aims to propose a comprehensive greenfield foreign direct investment (FDI) attractiveness index using exploratory factor analysis and automated machine learning (AML)…

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Abstract

Purpose

This study aims to propose a comprehensive greenfield foreign direct investment (FDI) attractiveness index using exploratory factor analysis and automated machine learning (AML). We offer offer a robust empirical measurement of location-choice factors identified in the FDI literature through a novel method and provide a tool for assessing the countries' investment potential.

Design/methodology/approach

Based on five conceptual key sub-domains of FDI, We collected quantitative indicators in several databases with annual data ranging from 2006 to 2019. This study first run a factor analysis to identify the most important features. It then uses AML to assess the relative importance of each resultant factor and generate a calibrated index. AML computational algorithms minimize predictive errors, explore patterns in the data and make predictions in an empirically robust way.

Findings

Openness conditions and economic growth are the most relevant factors to attract FDI identified in the study. Luxembourg, Hong Kong, Singapore, Malta and Ireland are the top five countries with the highest overall greenfield attractiveness index. This study also presents specific indices for the three sectors: energy, financial services, information and communication technology (ICT) and electronics.

Originality/value

Existent indexes present deficiencies in conceptualization and measurement, lacking theoretical foundation, arbitrary selection of factors and use of limited linear models. This study’s index is developed in a robust three-stage process. The use of AML configures an advantage compared to traditional linear and additive models, as it selects the best model considering the predictive capacity of many models simultaneously.

Details

Competitiveness Review: An International Business Journal , vol. 32 no. 7
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 28 May 2021

Zhibin Xiong and Jun Huang

Ensemble models that combine multiple base classifiers have been widely used to improve prediction performance in credit risk evaluation. However, an arbitrary selection of base…

Abstract

Purpose

Ensemble models that combine multiple base classifiers have been widely used to improve prediction performance in credit risk evaluation. However, an arbitrary selection of base classifiers is problematic. The purpose of this paper is to develop a framework for selecting base classifiers to improve the overall classification performance of an ensemble model.

Design/methodology/approach

In this study, selecting base classifiers is treated as a feature selection problem, where the output from a base classifier can be considered a feature. The proposed correlation-based classifier selection using the maximum information coefficient (MIC-CCS), a correlation-based classifier selection under the maximum information coefficient method, selects the features (classifiers) using nonlinear optimization programming, which seeks to optimize the relationship between the accuracy and diversity of base classifiers, based on MIC.

Findings

The empirical results show that ensemble models perform better than stand-alone ones, whereas the ensemble model based on MIC-CCS outperforms the ensemble models with unselected base classifiers and other ensemble models based on traditional forward and backward selection methods. Additionally, the classification performance of the ensemble model in which correlation is measured with MIC is better than that measured with the Pearson correlation coefficient.

Research limitations/implications

The study provides an alternate solution to effectively select base classifiers that are significantly different, so that they can provide complementary information and, as these selected classifiers have good predictive capabilities, the classification performance of the ensemble model is improved.

Originality/value

This paper introduces MIC to the correlation-based selection process to better capture nonlinear and nonfunctional relationships in a complex credit data structure and construct a novel nonlinear programming model for base classifiers selection that has not been used in other studies.

Article
Publication date: 6 September 2022

Benedict von Ahlefeldt-Dehn, Marcelo Cajias and Wolfgang Schäfers

Commercial real estate and office rental values, in particular, have long been the focus of research. Several forecasting frameworks for office rental values in multivariate and…

Abstract

Purpose

Commercial real estate and office rental values, in particular, have long been the focus of research. Several forecasting frameworks for office rental values in multivariate and univariate fashions have been proposed. Recent developments in time series forecasting using machine learning and deep learning methods offer an opportunity to update traditional univariate forecasting frameworks.

Design/methodology/approach

With the aim to extend research on univariate rent forecasting a hybrid methodology combining both ARIMA and a neural network model is proposed to exploit the unique strengths of both methods in linear and nonlinear modelling. N-BEATS, a deep learning algorithm that has demonstrated state-of-the-art forecasting performance in major forecasting competitions, are explained. With the ARIMA model, it is jointly applied to the office rental dataset to produce forecasts for four-quarters ahead.

Findings

When the approach is applied to a dataset of 21 major European office cities, the results show that the ensemble model can be an effective approach to improve the prediction accuracy achieved by each of the models used separately.

Practical implications

Real estate forecasting is essential for assessing the value of managing portfolios and for evaluating investment strategies. The approach applied in this paper confirms the heterogeneity of real estate markets. The application of mixed modelling via linear and nonlinear methods decreases the uncertainty of abrupt changes in rents.

Originality/value

To the best of the authors' knowledge, no such application of a hybrid model updating classical statistical forecasting with a deep learning neural network approach in the field of commercial real estate rent forecasting has been undertaken.

Details

Journal of Property Investment & Finance, vol. 41 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 24 April 2020

Wei Kang Loo

The purpose of this study is to evaluate the performance of the ensemble learning models, such as the Random Forest and Extreme Gradient Boosting models, in predicting the…

Abstract

Purpose

The purpose of this study is to evaluate the performance of the ensemble learning models, such as the Random Forest and Extreme Gradient Boosting models, in predicting the direction of the Japan real estate investment trusts (J-REITs) at different return horizons, based on input obtained from various technical indicators.

Design/methodology/approach

This study measures the predictability of J-REITs with technical indicators by using different horizons of REITs' return and machine learning models. The ensemble learning models includes Random Forest and Extreme Gradient Boosting models while the return horizons of REITs ranging from 1 to 300 days. The results were further split into individual years to check for the consistency of the performance across time.

Findings

The Extreme Gradient Boosting appears to be the best method in improving forecast accuracy but not the trading return. A wider return horizons platform seemed to deliver a relatively better performance in both forecast accuracy and trading return, when compared to the return horizon of one.

Practical implications

It is recommended that the Extreme Gradient Boosting and Random Forest model be considered by practitioners for back-testing trading model. In addition, selecting different return horizons so as to achieve a better performance in trading/investment should also be considered.

Originality/value

The predictability of J-REITs using technical indicators was compared among different returns horizons and the models (Extreme Gradient Boosting and Random Forest).

Details

Journal of Property Investment & Finance, vol. 38 no. 6
Type: Research Article
ISSN: 1463-578X

Keywords

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