International Journal of Management Science and Information Technology (IJMSIT)
Vol. 4 No. 2 (2024): July - December 2024

Development of Econometric Models for Financial Performance Forecasting in Companies

Nugroho, Adi (Unknown)
Apriyane Patty, Maria (Unknown)
Karto, Andriani (Unknown)



Article Info

Publish Date
05 Sep 2024

Abstract

This study develops an econometric model to predict corporate financial performance. The goal is to improve the accuracy of predictions by analysing relevant economic and financial variables. The model combines statistical and econometric analysis to identify significant input variables such as asset turnover, firm size, capital structure, and liquidity. The study also highlights the importance of external factors, such as environmental policies and knowledge management, that affect corporate financial performance. Using ARIMA and VAR models, the study shows that selecting the correct parameters, such as the number of lags, is critical to improving prediction accuracy. The developed model is evaluated based on RMSE, MAD, and MAPE metrics, which show that the econometric model offers more accurate predictions than the classical statistical model. These results contribute significantly to understanding corporate financial performance dynamics and can be a reliable tool in strategic decision-making across various industry sectors.

Copyrights © 2024






Journal Info

Abbrev

IJMSIT

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The development of science related to good technology, information, and communication, both theoretically and empirically has proven to have a positive impact on various aspects of people lives. The development of the science of Information and Communication Technology provides many benefits to ...