INTRODUCTION not only the company, but alsoINTRODUCTION not only the company, but also

INTRODUCTION

Nowadays, company CEO’s and
other heads need to take fast decision making in a right way, without any
errors. Also they need to be careful in monetary terms, since a single minor
fault in financial aspect and fraud in money aspect would spoil the name and future
for not only the company, but also for the stakeholders of the entire company
(as in the case of satyam scandal 10 years before). Hence, analytics when
implemented in finance benefits a lot and makes them time saving. Some of the
articles are discussed below where analytics are used in various places like
auditing, bankruptcy, etc.,

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LITERATURE REVIEW

Cao et al (2015), came
up with a study how big data analytics is used in audits, its characteristics
and issues in implementing analytics for financial purposes like auditing. They
have mentioned that analytics can be used in auditing fields to manage the
risks of bankruptcy, to prevent the risks of material misstatement. Analytics
were used in predicting the averages in Dow Jones Industrial Average (DJIA),
where the shifts were predicted three days ahead. Walmart used customers
demographics and managed inventories like selling a day breakfast during
unfavourable climatic conditions to their customers, which increased the sales
to seven fold times. Ayata’s Prescriptive Analytics uses analytics to drill oil
by combining all sources of data like images, texts, structured and
unstructured, retrieved information like images from well logs, drilling
operations sound, videos of fluid flows from hydraulic fractures, text from
driller’s notes, and quantifiable data (numbers) from production reports and
are progressing well and good. The paper also discussed the biggest challenges
of financial analytics, where financial analytics may generate false positives
and hence it should identify its anomalies correctly and implement them.

 

Fitz
et.al.,(2015), pointed out few ideas which can help financial managers to add
value and ways to implement them. Obtain top management sponsorship to get a
strong support, the need of information should be understood and should know
what questions need to be answered, full range of available advanced analytic
capabilities should be understood, comprehensive gap analysis should be
performed to understand where our data reside, barriers and other privacy laws
should be discussed, to define your transformation strategy and to buy-in the
stakeholder where the author highlighted to start small and further enhance by
building upon initial success, keep building capacity by trial and error and
not to do the entire work in one day, keep checking if the data that got
converted into information adds value to the company, Constantly revaluation of
the performed works should be done, and to accept all these modifications as
change management.

 

Drew et.al.,
(2016) suggested that the local government faced the problems of financial
sustainability where reformation of financial data was in need. Hence factor
analysis were applied to financial ratio’s, Financial flexibility
like operating ratio and Own Source Operating Revenue ratio, Cash expense,
Unrestricted Current, Debt Service Cover and Interest Cover ratios and Asset
Renewal and Capital Works like Infrastructure Backlog, Asset Maintenance, Asset
Renewal and Capital Expenditure ratios, were summarised as a single financial sustainability
assessment ranging through ‘very weak’, ‘weak’, ‘moderate’, ‘sound’, ‘strong’
to ‘very strong’. All these ratio’s were done with regression analysis and
found the correlation between the ratio’s with the latent factors like population size, number
of employing businesses and population density would be statistically
significant regressors for econometric models employing the dominant factor
loadings as regressands. It was found that three  major latent factors driving the observed
financial  sustainability ratios which
prompted the reform process in the first place. Another important finding was
that the three factors – scale and
density, legacy and management competency acts independently.

 

Deborah magliozzi
(2017) done an empirical research study that analyses the economic and
financial aspects of national telecom operators in Europe through the
construction of appropriate financial strategic maps profitability map per
market share, Financial autonomy map, Capital expenditure cover map, Current
map, Liquidity mar for Telecom Italia (Italy),
British Telecom (U.K.), France Telecom (France), Deutsche Telekom (Germany),
KPN (Holland), Telefonica de Espana (Spain) and Portugal Telecom (Portugal).
Financial analysis of the operators were done using regression and maps were
formulated where the standard regression equation were done to identify the
uniformity and standard deviation of all the operators in each and every
financial aspects like current assets, liabilities, etc.,

 

Rafal, (2016),
analysed changes between a chosen world
stock market and the constructed synthetic index. He proved the dependence
between the synthetic stock market index and other stock markets is increasing
when there is rapid decrease in value of stock market indexes. Contagion in
financial markets were verified through positive verification. They proved the
contagious nature of stock markets to the world economy by proving that the
decline of stock market in US is delayed by about one-three months. They also
indicated that contagious nature of can be well measured by the taxonomic index and a
conditional concordance.

 

Beck, torre (2007) pointed out that
price and income level were the economic determinants of the demand for
payments and savings services. Economic development along with the associated
rise in per capita income increases the need for more and more sophisticated
versions of these services. However, demand is not only driven by economic but
also by socio-cultural factors. Further, we have to isolate pure demand factors
from demand reductions that are due to the expectation of supply constraints.
In the following, we will distinguish between two demand curves—a potential
demand curve, driven purely by economic factors, and an actual demand curve,
that might be below the potential one due to non-economic factors. We can write
the potential (individual or aggregate) demand as D? = f{income, price},
with demand increasing in the first argument and decreasing in the second. The
actual demand can be lower than potential demand for a given price and income
level, due to self-exclusion arising from such non-economic reasons as
financial illiteracy and ethnic or religious factors.

 

Kirca, et,
al., (2011) used sampling method of four stage procedure for his meta-analysis
of 120 independent samples where, around in 111 studies, the predictions of
internalization theory was done from the context of the multi-nationality performance
relationship, which provided an efficient organizational enabling firms to
generate higher returns in international markets by transferring their
firm-specific assets. Independent variables: R&D intensity and advertising
intensity

, dependent variable:
multi-nationality. Organizational variables: firm international experience,
age, and size. From the meta-analytic evidence, they came to know that
multinationality had intrinsic values at the limit beyond the firm’s intangible
assets.

 

Flood (2009) discussed
about meta-data, where financial
innovation, model

risk, and strategic policy evolution creates
a very unstable data integration environment for risk management analytics. They
also discussed about the costs involved in managing meta-data, such as specification
and mapping costs, did scaling of the costs in a computer software, and finally
They proposed design with two main features, where the first one centralizes
metadata in a numeraire specification, to linearize the mapping costs and
second one it introduces an ontological structure and an ontology editor to
expose the metadata to financial analysts for on-the-fly editing.