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This study updates the literature review of Jones (1987) published in this journal. The study pays particular attention to two important themes that have shaped the field over the past 35 years: (1) the development of a range of innovative new statistical learning methods, particularly advanced machine learning methods such as stochastic gradient boosting, adaptive boosting, random forests and deep learning, and (2) the emergence of a wide variety of bankruptcy predictor variables extending beyond traditional financial ratios, including market-based variables, earnings management proxies, auditor going concern opinions (GCOs) and corporate governance attributes. Several directions for future research are discussed.

This study provides a systematic review of the corporate failure literature over the past 35 years with a particular focus on the emergence of new statistical learning methodologies and predictor variables. This synthesis of the literature evaluates the strength and limitations of different modelling approaches under different circumstances and provides an overall evaluation the relative contribution of alternative predictor variables. The study aims to provide a transparent, reproducible and interpretable review of the literature. The literature review also takes a theme-centric rather than author-centric approach and focuses on structured themes that have dominated the literature since 1987.

There are several major findings of this study. First, advanced machine learning methods appear to have the most promise for future firm failure research. Not only do these methods predict significantly better than conventional models, but they also possess many appealing statistical properties. Second, there are now a much wider range of variables being used to model and predict firm failure. However, the literature needs to be interpreted with some caution given the many mixed findings. Finally, there are still a number of unresolved methodological issues arising from the Jones (1987) study that still requiring research attention.

The study explains the connections and derivations between a wide range of firm failure models, from simpler linear models to advanced machine learning methods such as gradient boosting, random forests, adaptive boosting and deep learning. The paper highlights the most promising models for future research, particularly in terms of their predictive power, underlying statistical properties and issues of practical implementation. The study also draws together an extensive literature on alternative predictor variables and provides insights into the role and behaviour of alternative predictor variables in firm failure research.

This article proposes a relaxed gradient iterative (RGI) algorithm to solve coupled Sylvester-conjugate transpose matrix equations (CSCTME) with two unknowns.

This article proposes a RGI algorithm to solve CSCTME with two unknowns.

The introduced (RGI) algorithm is more efficient than the gradient iterative (GI) algorithm presented in Bayoumi (2014), where the author's method exhibits quick convergence behavior.

The introduced (RGI) algorithm is more efficient than the GI algorithm presented in Bayoumi (2014), where the author's method exhibits quick convergence behavior.

In systems and control, Lyapunov matrix equations, Sylvester matrix equations and other matrix equations are commonly encountered.

In systems and control, Lyapunov matrix equations, Sylvester matrix equations and other matrix equations are commonly encountered.

This article proposes a relaxed gradient iterative (RGI) algorithm to solve coupled Sylvester conjugate transpose matrix equations (CSCTME) with two unknowns. For any initial matrices, a sufficient condition is derived to determine whether the proposed algorithm converges to the exact solution. To demonstrate the effectiveness of the suggested method and to compare it with the gradient-based iterative algorithm proposed in [6] numerical examples are provided.

The primary objective of this research is to provide a precise interpretation of the constructed machine learning model and produce definitive summaries that can evaluate the influence of investor sentiment on the overall sales of non-fungible token (NFT) assets. To achieve this objective, the NFT hype index was constructed as well as several approaches of XAI were employed to interpret Black Box models and assess the magnitude and direction of the impact of the features used.

The research paper involved the construction of a sentiment index termed the NFT hype index, which aims to measure the influence of market actors within the NFT industry. This index was created by analyzing written content posted by 62 high-profile individuals and opinion leaders on the social media platform Twitter. The authors collected posts from the Twitter accounts that were afterward classified by tonality with a help of natural language processing model VADER. Then the machine learning methods and XAI approaches (feature importance, permutation importance and SHAP) were applied to explain the obtained results.

The built index was subjected to rigorous analysis using the gradient boosting regressor model and explainable AI techniques, which confirmed its significant explanatory power. Remarkably, the NFT hype index exhibited a higher degree of predictive accuracy compared to the well-known sentiment indices.

The NFT hype index, constructed from Twitter textual data, functions as an innovative, sentiment-based indicator for investment decision-making in the NFT market. It offers investors unique insights into the market sentiment that can be used alongside conventional financial analysis techniques to enhance risk management, portfolio optimization and overall investment outcomes within the rapidly evolving NFT ecosystem. Thus, the index plays a crucial role in facilitating well-informed, data-driven investment decisions and ensuring a competitive edge in the digital assets market.

The authors developed a novel index of investor interest for NFT assets (NFT hype index) based on text messages posted by market influencers and compared it to conventional sentiment indices in terms of their explanatory power. With the application of explainable AI, it was shown that sentiment indices may perform as significant predictors for NFT sales and that the NFT hype index works best among all sentiment indices considered.

Explainable artificial intelligence (XAI) has importance in several industrial applications. The study aims to provide a comparison of two important methods used for explainable AI algorithms.

In this study multiple criteria has been used to compare between explainable Ranked Area Integrals (xRAI) and integrated gradient (IG) methods for the explainability of AI algorithms, based on a multimethod phase-wise analysis research design.

The theoretical part includes the comparison of frameworks of two methods. In contrast, the methods have been compared across five dimensions like functional, operational, usability, safety and validation, from a practical point of view.

A comparison has been made by combining criteria from theoretical and practical points of view, which demonstrates tradeoffs in terms of choices for the user.

Our results show that the xRAI method performs better from a theoretical point of view. However, the IG method shows a good result with both model accuracy and prediction quality.

Initiator crimes, also known as near-repeat crimes, occur in places with known risk factors and vulnerabilities based on prior crime-related experiences or information. Consequently, the environment in which initiator crimes occur might be different from more general crime environments. This study aimed to analyse the differences between the environments of initiator crimes and general crimes, confirming the need for predicting initiator crimes.

We compared predictive models using data corresponding to initiator crimes and all residential burglaries without considering repetitive crime patterns as dependent variables. Using random forest and gradient boosting, representative ensemble models and predictive models were compared utilising various environmental factor data. Subsequently, we evaluated the performance of each predictive model to derive feature importance and partial dependence based on a highly predictive model.

By analysing environmental factors affecting overall residential burglary and initiator crimes, we observed notable differences in high-importance variables. Further analysis of the partial dependence of total residential burglary and initiator crimes based on these variables revealed distinct impacts on each crime. Moreover, initiator crimes took place in environments consistent with well-known theories in the field of environmental criminology.

Our findings indicate the possibility that results that do not appear through the existing theft crime prediction method will be identified in the initiator crime prediction model. Emphasising the importance of investigating the environments in which initiator crimes occur, this study underscores the potential of artificial intelligence (AI)-based approaches in creating a safe urban environment. By effectively preventing potential crimes, AI-driven prediction of initiator crimes can significantly contribute to enhancing urban safety.

The purpose of this paper is to highlight the key technical challenges that derive from the recently proposed European Artificial Intelligence Act and specifically, to investigate the applicability of the requirements that the AI Act mandates to high-risk AI systems from the perspective of AI security.

This paper presents the main points of the proposed AI Act, with emphasis on the compliance requirements of high-risk systems. It matches known AI security threats with the relevant technical requirements, it demonstrates the impact that these security threats can have to the AI Act technical requirements and evaluates the applicability of these requirements based on the effectiveness of the existing security protection measures. Finally, the paper highlights the necessity for an integrated framework for AI system evaluation.

The findings of the EU AI Act technical assessment highlight the gap between the proposed requirements and the available AI security countermeasures as well as the necessity for an AI security evaluation framework.

AI Act, high-risk AI systems, security threats, security countermeasures.

The process of predicting construction costs and forecasting price fluctuations is a significant and challenging undertaking for project managers. This study aims to develop a construction cost index (CCI) for Jordan’s construction industry using fuzzy analytic hierarchy process (FAHP) and predict future CCI values using traditional and machine learning (ML) techniques.

The most influential cost items were selected by conducting a literature review and confirmatory expert interviews. The cost items’ weights were calculated using FAHP to develop the CCI formula.

The results showed that the random forest model had the lowest mean absolute percentage error (MAPE) of 1.09%, followed by Extreme Gradient Boosting and K-nearest neighbours with MAPEs of 1.41% and 1.46%, respectively.

The novelty of this study lies within the use of FAHP to address the ambiguity of the impact of various cost items on CCI. The developed CCI equation and ML models are expected to significantly benefit construction managers, investors and policymakers in making informed decisions by enhancing their understanding of cost trends in the construction industry.

This paper aims to investigate the performance of two novel numerical methods, the face-based smoothed finite element method (FS-FEM) and the edge-based smoothed finite element method (ES-FEM), which employ linear tetrahedral elements, for the purpose of strength assessment of a high-speed train hollow axle.

The calculation of stress for the wheelset, comprising an axle and two wheels, is facilitated through the application of the European axle strength design standard. This standard assists in the implementation of loading and boundary conditions and is exemplified by the typical CRH2 high-speed train wheelset. To evaluate the performance of these two methods, a hollow cylinder cantilever beam is first used as a benchmark to compare the present methods with other existing methods. Then, the strength analysis of a real wheelset model with a hollow axle is performed using different numerical methods.

The results of deflection and stress show that FS-FEM and ES-FEM offer higher accuracy and better convergence than FEM using linear tetrahedral elements. ES-FEM exhibits a superior performance to that of FS-FEM using linear tetrahedral elements, showing accuracy and convergence close to FEM using hexahedral elements.

This study channels the novel methods (FS-FEM and ES-FEM) in the static stress analysis of a railway wheelset. Based on the careful testing of FS-FEM and ES-FEM, both methods hold promise as more efficient tools for the strength analysis of complex railway structures.

A multi-laser sensors-based measurement instrument is proposed for the measurement of geometry errors of a differential body and quality evaluation. This paper aims to discuss the aforementioned idea.

First, the differential body is set on a rotation platform before measuring. Then one laser sensor called as “primary sensor”, is installed on the intern of the differential body. The spherical surface and four holes on the differential body are sampled by the primary sensor when the rotation platform rotates one revolution. Another sensor called as “secondary sensor”, is installed above to sample the external cylinder surface and the planar surface on the top of the differential body, and the external cylinder surface and the planar surface are high in manufacturing precision, which are used as datum surfaces to compute the errors caused by the motion of the rotation platform. Finally, the sampled points from the primary sensor are compensated to improve the measurement accuracy.

A multi-laser sensors-based measurement instrument is proposed for the measurement of geometry errors of a differential body. Based on the characteristics of the measurement data, a gradient image-based method is proposed to distinguish different objects from laser measurement data. A case study is presented to validate the measurement principle and data processing approach.

The study investigates the possibility of correction of sensor data by the measurement results of multiple sensors to improving measurement accuracy. The proposed technique enables the error analysis and compensation by the geometric correlation relationship of various features on the measurand.

The proposed error compensation principle by using multiple sensors proved to be useful for the design of new measurement device for special part inspection. The proposed approach to describe the measuring data by image also is proved to be useful to simplify the measurement data processing.

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.

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.

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.

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.