Assessing model efficacy in forecasting EPS of Chinese firms using fundamental accounting variables: a comparative study

In this paper, we compare the forecasting accuracy of two neural network models in forecasting earnings per share of Chinese listed companies based upon fundamental accounting variables. In one neural network model, weights estimated by back propagation were utilised, and in the other model a genetic algorithm was utilised. Based upon a sample of 723 Chinese companies in 22 industries over a ten year period, we found that the neural network...