Class 9
Financial Screening and Signal Construction
Description
This session introduces financial screening as a process for using accounting measures and other observable characteristics to identify firms or observations warranting additional investigation. Screening is important because analysts frequently face populations too large for individual examination and therefore need systematic methods for prioritizing attention.
Motivation
How do we systematically identify unusual firms?
Review
The course has developed methods for extracting, transforming, combining, and analyzing both structured and textual data. This session shifts the emphasis from preparing individual sources toward using those data to construct analytical signals that distinguish potentially interesting observations from a larger population.