Abstract
This study analyses a sample of confidential invoice discounting clients using one particular branch of machine learning - an inductive algorithm as used in case-based reasoning (CBR). The sample used consists of data collected from 98 business clients of a leading UK factoring and invoice discounting company. The data collected was supplemented by financial accounting information2. Factoring and invoice discounting is an additional form of finance to the company’s overdraft facility. This study examines the profile of business clients (or cases) which bank with the invoice discounting company affiliated bank versus those business clients (or cases) which bank with competing banks. A few attempts have been made by this leading UK factoring and invoice discounting company to differentiate between case profiles. For the first time, this study provides an empirical framework for examining invoice discounting data. It also suggests the potential for a case-based approach based on induction which specifically handles multidimensional case information. The findings raise interesting questions for this factoring and invoice discounting company specific to its clients.
We are very grateful to the Journal of Applied Accounting Research for providing a grant to fund this research. We are also very grateful to Giles Elliott for his comments.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Woodard, R. (1993), ‘Factoring: Finance for growth’, Credit Control, Vol 14, Iss 12,22–27
O’Riordan, D. (1997), ‘Factoring: Oasis in a cash desert?’, Certified Accountant, February 1997, 28–29
ABFD (1995), Annual Review 1995-Self Financing Growth for Business
Nolan, G. (1992), ‘Who’s Afraid of Invoice Discounting?’, Credit Management, April 1992, 42–43
Parker, S. (1993), ‘Factoring Poised to Support Business Recovery’,Credit Management, April 1992, 44–45
Tulip, S. (1992), ‘Factoring: International Rescue’,Credit Management, April 1992,pp 34–36
Quinlan, J (1986), ‘Induction of decision trees’, Machine Learning, 1(1), 81–106
Quinlan, J. (1988) ‘An empirical comparison of genetic and decision-tree classifiers’, Proceedings of the Fifth International Conference on Machine Learning, Morgan Kaufmann, pp. 135–141.
Utgoff, P. (1994) ‘An Improved Algorithm for Incremental Induction of Decision Trees’, International Conference on Machine Learning.
Morgan, R.P. and Bond, J.R. (1989), ‘Methods of artificial intelligence - some applications for market research’, Journal of the Market Research Society, Volume 31, number 3, 375–397
Curet, O. & Elliott, J. (1996), ‘Using Transfer Pricing cases in multinationals - a survey of current practice and the applicability of case-based systems’, UKCBR2 Proceedings, University of Salford, 10 April.
Braun, H. and Chandler, J.S. (1987), ‘Predicting Stock Market Behaviour through Rule Induction: An Application of the Learning-from-Examples Approach’, Decision Sciences (Summer 1987), 415–429
Messier, W.F Jr and Hansen, J.V. (1988), ‘Inducing Rules for Expert Systems Development: An Example Using Default and Bankruptcy Data’, Management Science (December 1988), 1404–1415
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1999 Springer-Verlag London
About this paper
Cite this paper
Elliott, J., Curet, O. (1999). Invoice Discounting - A Strategic Analysis Using Case-Based Reasoning. In: Milne, R.W., Macintosh, A.L., Bramer, M. (eds) Applications and Innovations in Expert Systems VI. Springer, London. https://doi.org/10.1007/978-1-4471-0575-6_15
Download citation
DOI: https://doi.org/10.1007/978-1-4471-0575-6_15
Publisher Name: Springer, London
Print ISBN: 978-1-85233-087-3
Online ISBN: 978-1-4471-0575-6
eBook Packages: Springer Book Archive