Financial Event Prediction using Machine Learning
228 Pages Posted: 15 Nov 2019 Last revised: 25 Mar 2020
Date Written: November 6, 2019
This thesis focuses on the use of machine learning in financial event prediction. In the past, finance academics had to be content with mostly linear models that could only ingest a small number of variables of a particular type. Now we can use non-linear models with a larger number of variables and more versatile data types. In this thesis, I show how machine learning can lead to significant improvements in financial event prediction, more specifically, in earnings surprise, bankruptcy and facility closure predictions, all of which have significant financial implications for businesses and stakeholders alike.
Keywords: Event Prediction, Financial Event, Machine Learning, Classification, Earnings, Bankruptcy, Facility Closure
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