Relationship Between Management Policies and Profitability for Second Section-Listed Manufacturing Companies of the Tokyo Stock Exchange (2016 Results)

摘要

In this paper, we try to analyze the relationship between companies' management policies and profitability. Management policies are very important guidelines for companies, because they include matters regarded as important to the business, its founding spirit, company motto, and so on. Therefore, we consider that management policies affect profitability. Data on management policies and profitability (measured by return on assets (ROA)) were gathered from annual securities reports because their descriptions are accurate and the reports are easy to obtain. As management policies were written in natural language and the data to be analyzed becomes complex, a neural computational method known as "potential learning" which can interpret internal representations, was used. As a result, we found that the generalization performance of the model was 0.5938 (accuracy) and management policies included the words related to "Place - institution" and "Number", which may affect ROA.