Hassan Najadat1, Ibrahim
Al-Daher2, and Khaled Alkhatib1
1Computer
Information Systems Department, Jordan University of Science and Technology,
Jordan
2Computer Science Department, Jordan University of Science and
Technology, Jordan
Abstract: This study introduces an approach
of combining Data Envelopment Analysis (DEA) and ensemble Methods in order to
classify and predict the efficiency of Decision Making Units (DMU). The
approach includes applying DEA in the first stage to compute the efficiency
score for each DMU, then a variables’ ranker was utilized to extract the most
important variables that affect the DMU’s performance, then J48 was adopted to
build a classifier whose outcomes will be enhanced by Diverse Ensemble Creation
by Oppositional Relabeling of Artificial Training Examples (DECORATE) Ensemble
method. To examine the approach, this study utilizes a dataset from firms’
financial statements that are listed on Amman Stock Exchange. The dataset was
preprocessed and turned out to include 53 industrial firms for the years 2012
to 2015.The dataset includes 11 input variables and 11 output ratios. The
examination of financial variables and ratios play a vital role in the
financial analysis practice. This paper shows that financial variable and ratio
averages are points of reference to evaluate and measure firms’ future financial
performance as well as that of other similar firms in the same sector. In
addition, the results of this work are for comparative analyses of the
financial performance of the industrial sector.
Keywords: Data Envelopment Analysis, Decision
Trees, Ensemble Methods, Financial Variables, Financial Ratios.
Received
October 12, 2019; accepted April 8, 2020