Neural Networks and their application in the fields of corporate finance

This article deals with the usefulness of neuronal networks in the area of corporate finance. Firstly, we highlight the initial applications of neural networks. One can distinguish two main types: layer networks and self organizing maps. As Altman al. (1994) underlined, the use of layer networks has improved the reclassifying rate in models of bankruptcy forecasting. These first applications improved bankruptcy forecasting by showing a relationship between capital structure and corporate performance. The results highlighted in our second part, show the pertinence of the use of the algorithm of Kohonen applied to qualitative variables (KACM). More particularly, in line with Altman (1968, 1984), one can suggest the coexistence of negative and positive effects of financial structure on performance. This result allows us to question scoring models and to conclude as to a non-linear relationship. In a larger framework, the methodology of Kohonen has allowed a better perception of the factors able to explain the leasing financing (Cottrell et al., 1996). The objective is here to explain the factors of the choice between leasing and banking loans. By using different variables, we highlight the characteristics of firms which most often use leasing. The corporate financing policy could be explained by: the cost of the financing, advantages of leasing or by the minimization of agency costs in leasing, we highlight a relationship between resorting to leasing and credit rationing.neural netwoks, SOM, corporate finance

Determinants of the choice leasing vs Bank Loan: evidence from the french sme by Kacm

The question of leasing credit as a substitute or complement of a banking loan has still not been resolved in the financial literature. As a continuation of these arguments, the objective of this article is, on the one hand, to determine the characteristics of firms using leasing credit and on the other hand, to better understand the relationship between leasing and credit rationing. Firstly, our results suggest that SME use leasing all the more the leasing so when they are young, leveraged, less solvent and that they present an small size and an important failure probability. Thus, leasing pushes back the limits of banking debt for firms that have no access to it. Secondly, our results suggest a strong and significant relationship between credit rationing and the use of leasing. In this framework the latter appears to be a last resort financing.Leasing, credit rationing, SME, Self organising maps (SOM)

optimal pruned K-nearest neighbors: op-knn application to financial modeling

The paper proposes a methodology called OP-KNN, which builds a one hidden- layer feedforward neural network, using nearest neighbors neurons with extremely small com- putational time. The main strategy is to select the most relevant variables beforehand, then to build the model using KNN kernels. Multiresponse Sparse Regression (MRSR) is used as the second step in order to rank each kth nearest neighbor and finally as a third step Leave-One- Out estimation is used to select the number of neighbors and to estimate the generalization performances. This new methodology is tested on a toy example and is applied to financial modeling

optimal pruned K-nearest neighbors: op-knn application to financial modeling

The paper proposes a methodology called OP-KNN, which builds a one hidden- layer feedforward neural network, using nearest neighbors neurons with extremely small com- putational time. The main strategy is to select the most relevant variables beforehand, then to build the model using KNN kernels. Multiresponse Sparse Regression (MRSR) is used as the second step in order to rank each kth nearest neighbor and finally as a third step Leave-One- Out estimation is used to select the number of neighbors and to estimate the generalization performances. This new methodology is tested on a toy example and is applied to financial modelin

Forecasting financial failure using a Kohonen map: A comparative study to improve model stability over time

This study attempts to show how a Kohonen map can be used to improve the temporal stability of the accuracy of a financial failure model. Most models lose a significant part of their ability to generalize when data used for estimation and prediction purposes are collected over different time periods. As their lifespan is fairly short, it becomes a real problem if a model is still in use when re-estimation appears to be necessary. To overcome this drawback, we introduce a new way of using a Kohonen map as a prediction model. The results of our experiments show that the generalization error achieved with a map remains more stable over time than that achieved with conventional methods used to design failure models (discriminant analysis, logistic regression, Cox’s method, and neural networks). They also show that type-I error, the economically costliest error, is the greatest beneficiary of this gain in stability

The In-Feed Antibiotic Carbadox Induces Phage Gene Transcription in the Swine Gut Microbiome

Carbadox is a quinoxaline-di-N-oxide antibiotic fed to over 40% of young pigs in the United States that has been shown to induce phage DNA transduction in vitro; however, the effects of carbadox on swine microbiome functions are poorly understood. We investigated the in vivo longitudinal effects of carbadox on swine gut microbial gene expression (fecal metatranscriptome) and phage population dynamics (fecal dsDNA viromes). Microbial metagenome, transcriptome, and virome sequences were annotated for taxonomic inference and gene function by using FIGfam (isofunctional homolog sequences) and SEED subsystems databases. When the beta diversities of microbial FIGfam annotations were compared, the control and carbadox communities were distinct 2 days after carbadox introduction. This effect was driven by carbadox-associated lower expression of FIGfams (n = 66) related to microbial respiration, carbohydrate utilization, and RNA metabolism (q \u3c 0.1), suggesting bacteriostatic or bactericidal effects within certain populations. Interestingly, carbadox treatment caused greater expression of FIGfams related to all stages of the phage lytic cycle 2 days following the introduction of carbadox (q ≤0.07), suggesting the carbadox-mediated induction of prophages and phage DNA recombination. These effects were diminished by 7 days of continuous carbadox in the feed, suggesting an acute impact. Additionally, the viromes included a few genes that encoded resistance to tetracycline, aminoglycoside, and beta-lactam antibiotics but these did not change in frequency over time or with treatment. The results show decreased bacterial growth and metabolism, prophage induction, and potential transduction of bacterial fitness genes in swine gut bacterial communities as a result of carbadox administration

Instructional Design Strategies for Teaching the Mental Status Examination and Psychiatric Interview: a Scoping Review

Objective: The psychiatric mental status examination is a fundamental aspect of the psychiatric clinical interview. However, despite its importance, little emphasis has been given to evidence-based instructional design. Therefore, this review summarizes the literature from an instructional design perspective with the aim of uncovering design strategies that have been used for teaching the psychiatric interview and mental status examination to health professionals. Methods: The authors conducted a scoping review. Multiple databases, reference lists, and the gray literature were searched for relevant publications across educational levels and professions. A cognitive task analysis and an instructional design framework was used to summarize and chart the findings. Results: A total of 61 articles from 17 countries in six disciplines and three educational levels were identified for data extraction and analysis. Most studies were from the USA, presented as educational case reports, and carried out in undergraduate education in the field of psychiatry. Few articles described the instructional rationale for their curriculum. None of the studies compared the effectiveness of different instructional design components. Reported learning activities for each task domain (knowledge, skills, and attitudes) and for each step of an instructional design process were charted. Most articles reported the use of introductory seminars or lectures in combination with digital learning material (videos and virtual patients in more recent publications) and role-play exercises. Conclusions: Educators in psychiatry should consider all task domains of the psychiatric interview and mental status examination. Currently, there is a lack of empirical research on expertise acquisition and use of instructional design frameworks in this context

Emittance-preserving acceleration of high-quality positron beams using warm plasma filaments

Preserving the quality of positron beams in plasma-based accelerators, where wakefields are generated in electron filaments, is challenging. These wakefields are characterized by transversely non-linear focusing fields and non-uniform accelerating fields. However, a nonzero plasma temperature linearizes the transverse wakefield within the central region of the electron filament. In this study, we employ 3D particle-in-cell simulations with mesh refinement to demonstrate that beams with emittances on the order of tens of nanometers are contained within the linearized region of the transverse wakefield. This enables emittance preservation to one percent, while positron beams with the same charge and micrometer emittances, which sample the non-linear part of the transverse wakefield, experience a relative emittance growth of ten percent. Additionally, we observe a significant reduction in the growth rate of the slice energy spread for the tens of nanometers emittance beams in comparison to the micrometer emittance beams. The utilization of warm plasmas in conjunction with low-emittance beams opens up new avenues for enhancing the beam quality across various plasma-based positron acceleration approaches.Comment: To be submitted as a proceedings for the 6th European Advanced Accelerator Concepts worksho