Benchmarking global pulp and paper companies using self-organizing maps

Performing financial benchmarks in today's information-rich society can be a daunting task. With the evolution of the Internet,access to massive amoun ts of financial data, typically in the form of financial statements, is wid espread. Managers and stakeholders are in need of a tool allowing them to q uickly and accurately analyze this data. An emerging technique that may be suited for this application is the self-organizing mop. The purpose of this study was to evaluate the performance of self-organizing maps for the purp ose of financial benchmarking of international pulp and paper companies. Fo r the study, financial date, in the form of seven financial ratios, was col lected, using the Internet as the primary source of information. A total of 76 companies, and six regional averages, were included in the study. The t ime frame of the study was the period 1995-99. A number of benchmarks were performed, and the results analyzed based on information contained in the a nnual reports. The results of the study indicate that self-organizing maps can be feasible tools for the financial benchmarking of large amounts of fi nancial data.