Analysis of the relation between short-term indicators and the value of electric power sector companies using artificial neural networks model

Abstract

The financial indicators present both the past performance of the organization - what were the results of the previous month, for example - and allow you to predict the future - based on the budget, what will be the result, for example, in the following year. Possibility to invest in the relationship between business value and economic-financial indicators without short-term practice, using multivariate data analysis techniques. This study aims to predict a model with application of the methods of financial analysis using the financial-economic indicators and Tobin's Q in the company under study, it is possible to develop the Artificial Neural Network that facilitates the decision making of managers, assisting in the analysis of results as well as decrease the risks of wrong decisions. Cash flows are updated for two simple reasons: first, because a dollar available today is worth more than a dollar available tomorrow and, second, because a dollar with risk is worth less than a dollar without risk. The linearity and residual behavior tests also provided results that confirmed the constructed ANN, and it can be concluded that there is a relationship between Tobin's Q and the economic-financial and stock index.