Evolving classifiers to model the relationship between strategy and corporate performance using grammatical evolution

Anthony Brabazon, Michael O’Neill, Conor Ryan, Robin Matthews

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This study examines the potential of grammatical evolution to construct a linear classifier to predict whether a firm’s corporate strategy will increase or decrease shareholder wealth. Shareholder wealth is measured using a relative fitness criterion, the change in a firm’s marketvalue- added ranking in the Stern-Stewart Performance 1000 list, over a four year period, 1992-1996. Model inputs and structure are selected by means of grammatical evolution. The best classifier correctly categorised the direction of performance ranking change in 66.38% of the firms in the training set and 65% in the out-of-sample validation set providing support for a hypothesis that changes in corporate strategy are linked to changes in corporate performance.

Original languageEnglish
Title of host publicationGenetic Programming - 5th European Conference, EuroGP 2002, Proceedings
EditorsJames A. Foster, Evelyne Lutton, Julian Miller, Conor Ryan, Andrea G.B. Tettamanzi
PublisherSpringer Verlag
Pages103-112
Number of pages10
ISBN (Print)9783540433781
DOIs
Publication statusPublished - 2002
Event5th European Conference on Genetic Programming, EuroGP 2002 - Kinsale, Ireland
Duration: 3 Apr 20025 Apr 2002

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume2278
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference5th European Conference on Genetic Programming, EuroGP 2002
Country/TerritoryIreland
CityKinsale
Period3/04/025/04/02

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