An Earth Mover's Distance Based Graph Distance Metric For Financial Statements

被引:2
|
作者
Noels, Sander [1 ,2 ]
Vandermarlieret, Benjamin [2 ]
Bastiaensent, Ken [2 ]
De Bie, Tijl [1 ]
机构
[1] Univ Ghent, Dept Elect & Informat Syst, Ghent, Belgium
[2] Silverfin, Ghent, Belgium
关键词
graph distance metric; financial statement similarity; company benchmarking; graph embedding;
D O I
10.1109/CIFEr52523.2022.9776204
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Quantifying the similarity between a group of companies has proven to be useful for several purposes, including company benchmarking, fraud detection, and searching for investment opportunities. This exercise can be done using a variety of data sources, such as company activity data and financial data. However, ledger account data is widely available and is standardized to a large extent. Such ledger accounts within a financial statement can be represented by means of a tree, i.e. a special type of graph, representing both the values of the ledger accounts and the relationships between them. Given their broad availability and rich information content, financial statements form a prime data source based on which company similarities or distances could be computed. In this paper, we present a graph distance metric that enables one to compute the similarity between the financial statements of two companies. We conduct a comprehensive experimental study using real-world financial data to demonstrate the usefulness of our proposed distance metric. The experimental results show promising results on a number of use cases. This method may be useful for investors looking for investment opportunities, government officials attempting to identify fraudulent companies, and accountants looking to benchmark a group of companies based on their financial statements.
引用
收藏
页数:8
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