TY - GEN
T1 - Applying the negative selection algorithm for merger and acquisition target identification theory and case study
AU - Paul, Satyakama
AU - Janecek, Andreas
AU - De Lima Neto, Fernando Buarque
AU - Marwala, Tshilidzi
PY - 2013
Y1 - 2013
N2 - In this paper, we propose a new methodology based on the Negative Selection Algorithm that belongs to the field of Computational Intelligence (specifically, Artificial Immune Systems - AIS) to identify takeover targets. Although considerable research based on customary statistical techniques and some contemporary Computational Intelligence techniques have been devoted to identify takeover targets, most of the existing studies are based upon multiple previous mergers and acquisitions. Contrary to previous research, the novelty of this proposal lies in the methodology's ability to suggest takeover targets for novice firms that are at the beginning of their merger and acquisition spree. We first discuss the theoretical perspective and then provide a case study with details for practical implementation, both capitalizing from unique generalization capabilities of AIS algorithms.
AB - In this paper, we propose a new methodology based on the Negative Selection Algorithm that belongs to the field of Computational Intelligence (specifically, Artificial Immune Systems - AIS) to identify takeover targets. Although considerable research based on customary statistical techniques and some contemporary Computational Intelligence techniques have been devoted to identify takeover targets, most of the existing studies are based upon multiple previous mergers and acquisitions. Contrary to previous research, the novelty of this proposal lies in the methodology's ability to suggest takeover targets for novice firms that are at the beginning of their merger and acquisition spree. We first discuss the theoretical perspective and then provide a case study with details for practical implementation, both capitalizing from unique generalization capabilities of AIS algorithms.
KW - Artificial Immune System
KW - Cosine similarity
KW - Euclidean distance
KW - M&A
KW - Merger and Acquisition
KW - Negative Selection Algorithm
KW - Takeover target prediction
UR - http://www.scopus.com/inward/record.url?scp=84905388812&partnerID=8YFLogxK
U2 - 10.1109/BRICS-CCI-CBIC.2013.107
DO - 10.1109/BRICS-CCI-CBIC.2013.107
M3 - Conference contribution
AN - SCOPUS:84905388812
SN - 9781479931941
T3 - Proceedings - 1st BRICS Countries Congress on Computational Intelligence, BRICS-CCI 2013
SP - 609
EP - 616
BT - Proceedings - 1st BRICS Countries Congress on Computational Intelligence, BRICS-CCI 2013
PB - IEEE Computer Society
T2 - 1st BRICS Countries Congress on Computational Intelligence, BRICS-CCI 2013
Y2 - 8 September 2013 through 11 September 2013
ER -