Article ID Journal Published Year Pages File Type
554795 Decision Support Systems 2010 21 Pages PDF
Abstract

The objective of this paper is to demonstrate how the boosting approach can be used to define a data-driven board Balanced Scorecard (BSC) with applications to S&P 500 companies. Using Adaboost, we can generate alternating decision trees (ADTs) that explain the relationship between corporate governance variables, and firm performance.We also propose an algorithm to build a representative ADT based on cross-validation experiments. The representative ADT selects the most important indicators for the board BSC. As a final result, we propose a partially automated strategic planning system combining Adaboost with the board BSC for board-level or investment decisions.

Related Topics
Physical Sciences and Engineering Computer Science Information Systems
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