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An Ontology-Based Expert System for Financial Statements Analysis

An Ontology-Based Expert System for Financial Statements Analysis
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Author(s): Li-Yen Shue (National Kaoshiung First University of Science and Technology, Taiwan), Ching-Wen Chen (National Kaoshiung First University of Science and Technology, Taiwan)and Chao-Hen Hsueh (National Kaoshiung First University of Science and Technology, Taiwan)
Copyright: 2011
Pages: 16
Source title: Innovative Knowledge Management: Concepts for Organizational Creativity and Collaborative Design
Source Author(s)/Editor(s): Alan Eardley (Staffordshire University, UK)and Lorna Uden (Staffordshire University, UK)
DOI: 10.4018/978-1-60566-701-0.ch007

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Abstract

Financial statements provide the main source of information for all parties who are interested in the performance of a company, including its managers, creditors, and equity investors. Although each of these parties may have different perspectives when viewing financial statements, all parties are concerned with the financial quality of an enterprise, which requires carefully analyzing financial statements to estimate and predict future conditions and performance. When analyzing financial statements, due to the complexity of the task, even professional analysts may be subject to constraints of subjective views, physical and mental fatigue, or possible environmental factors, and are not able to provide consistent appraisals. As a result, researchers and practitioners have resorted to expert systems to imitate the decision processes and inferencing logics of financial experts.

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