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An Innovative Tool for Financial Decision Making: The Case of Artificial Neural Networks
Author(s) -
Wood Douglas,
Dasgupta Bhaskar
Publication year - 1995
Publication title -
creativity and innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.148
H-Index - 60
eISSN - 1467-8691
pISSN - 0963-1690
DOI - 10.1111/j.1467-8691.1995.tb00220.x
Subject(s) - artificial neural network , computer science , artificial intelligence , financial market , financial modeling , machine learning , finance , economics
Artificial Neural Networks (ANNs) may be seen as examples of a mathematical innovation, providing the latest technique in the toolkit of the financial economist for modelling financial applications. ANNs hold several advantages over earlier statistical and optimisation techniques. These are data driven networks, specially useful for real‐time and critical applications using complex sets of data. This paper describes some examples of current applications in the financial economics area, then gives some idea about how to design and develop neural network applications. The research carried out thus far suggests that ANN models offer improved results in capturing the transitory and non‐linear relationships within globalised financial markets.