Analytics

Artificial intelligence adoption in financial services presents uncertain implications for competitive dynamics, particularly for smaller institutions. The literature on AI in finance is growing, but there remains a notable absence regarding the impacts on small- and medium-sized financial services firms. We conduct a meta-analysis combining a systematic literature review, sentiment bibliometrics, and network analysis to examine how AI is transforming competition across different firm sizes in the financial sector. Our analysis of 160 publications reveals predominantly positive academic sentiment toward AI in finance (mean positive sentiment 0.725 versus negative 0.586, Cohen’s d = 0.790, p < 0.0001), with anticipatory sentiment increasing significantly over time ($\beta =2.10\times {10}^{-2},p=0.007$). However, network analysis reveals substantial conceptual fragmentation in the research discourse, with a low connectivity coefficient ($\varphi =0.125$) indicating that the field lacks unified terminology. These findings expose a critical knowledge gap: while scholars increasingly view AI as competitively advantageous, research has not coalesced around coherent models for understanding differential impacts across firm sizes. The absence of size-specific research leaves practitioners and policymakers without clear guidance on how AI adoption affects competitive positioning, particularly for smaller institutions that may face resource constraints or technological barriers. The research fragmentation identified here has direct implications for strategic planning, regulatory approaches, and employment dynamics in financial services. Full article

Maximal Extractable Value (MEV) presents a significant challenge to the fairness and efficiency of decentralized finance (DeFi). This paper provides a game-theoretic analysis of the strategic interactions within the MEV supply chain, involving searchers, builders, and validators. A three-stage game of incomplete information is developed to model these interactions. The analysis derives the Perfect Bayesian Nash Equilibria for primary MEV attack vectors, such as sandwich attacks, and formally characterizes attacker behavior. The research demonstrates that the competitive dynamics of the current MEV market are best described as Bertrand-style competition, which compels rational actors to engage in aggressive extraction that reduces overall system welfare in a prisoner’s dilemma-like outcome. To address these issues, the paper proposes and evaluates mechanism design solutions, including commit–reveal schemes and threshold encryption. The potential of these solutions to mitigate harmful MEV is quantified. Theoretical models are validated against on-chain data from the Ethereum blockchain, showing a close alignment between theoretical predictions and empirically observed market behavior. Full article

Bankruptcy prediction is critical for financial risk management. This study demonstrates that machine learning models, particularly Random Forest, can substantially improve prediction accuracy compared to traditional approaches. Using data from 8262 U.S. firms (1999–2018), we evaluate Logistic Regression, SVM, Random Forest, ANN, and RNN in combination with robust data preprocessing steps. Random Forest achieved the highest prediction accuracy (~95%), far surpassing Logistic Regression (~57%). Key preprocessing steps included feature engineering of financial ratios, feature selection, class balancing using SMOTE, and scaling. The findings highlight that ensemble and deep learning models—particularly Random Forest and ANN—offer strong predictive performance, suggesting their suitability for early-warning financial distress systems. Full article

In this paper, explicit exact representations of the Unit Step Function and Ramp Function are obtained. These important functions constitute fundamental concepts of operational calculus together with digital signal processing theory and are also involved in many other areas of applied sciences and engineering practices. In particular, according to a rigorous process from the viewpoint of Mathematical Analysis, the Unit Step Function and the Ramp Function are equivalently performed as bi-parametric single-valued functions with only one constraint imposed on each parameter. The novelty of this work, when compared with other investigations concerning accurate and/or approximate forms of Unit Step Function and/or Ramp Function, is that the proposed exact formulae are not exhibited in terms of miscellaneous special functions, e.g., Gamma Function, Biexponential Function, or any other special functions, such as Error Function, Complementary Error Function, Hyperbolic Function, or Orthogonal Polynomials. In this framework, one may deduce that these formulae may be much more practical, flexible, and useful in the computational procedures that are inserted into operational calculus and digital signal processing techniques as well as other engineering practices. Full article

This article introduces a computational tool for Bayesian estimation of the expected time until the next event occurs in both homogeneous Poisson processes (HPPs) and non-homogeneous Poisson processes (NHPPs), following a truncated time. The estimation utilizes the linear exponential (LINEX) asymmetric loss function and incorporates both gamma and non-informative priors. Furthermore, it presents a minimax-type criterion to ascertain the optimal sample size required to achieve a specified percentage reduction in posterior risk. Simulation studies indicate that estimators employing gamma priors for both HPP and NHPP demonstrate greater accuracy compared to those based on non-informative priors and maximum likelihood estimates (MLE), provided that the proposed data-driven method for selecting hyperparameters is applied. Full article

Hydrological time series frequently exhibit periodic trends with variables such as rainfall, runoff, and evaporation rates often following annual cycles. Seasonal variations further contribute to the complexity of these data sets. A critical aspect of analyzing such phenomena is estimating realistic return intervals, making the precise determination of these values essential. Given this importance, selecting an appropriate probability distribution is paramount. To address this need, we introduce a flexible probability model specifically designed to capture periodicity in hydrological data. We thoroughly examine its fundamental mathematical and statistical properties, including the asymptotic behavior of the probability density function (PDF) and hazard rate function (HRF), to enhance predictive accuracy. Our analysis reveals that the PDF exhibits polynomial decay as $x\to \infty$, ensuring heavy-tailed behavior suitable for extreme events. The HRF demonstrates decreasing or non-monotonic trends, reflecting variable failure risks over time. Additionally, we conduct a simulation study to evaluate the performance of the estimation method. Based on these results, we refine return period estimates, providing more reliable and robust hydrological assessments. This approach ensures that the model not only fits observed data but also captures the underlying dynamics of hydrological extremes. Full article

As digital transformation becomes an increasingly central focus of national and regional policy agendas, parallel efforts are intensifying to stimulate innovation as a critical driver of firm competitiveness and high-quality economic growth. However, regional disparities in innovation capacity persist. This study proposes an integrated framework in which regionally tracked digital economy indicators are leveraged to predict firm-level innovation performance, measured through patent activity, across China. Drawing on a comprehensive dataset covering 13 digital economic indicators from 2013 to 2022, this study spans core, broad, and narrow dimensions of digital development. Spatial dependencies among these indicators are assessed using global and local spatial autocorrelation measures, including Moran’s I and Geary’s C, to provide actionable insights for constructing innovation-conducive environments. To model the predictive relationship between digital metrics and innovation output, this study employs a suite of supervised machine learning techniques—Random Forest, Extreme Learning Machine (ELM), Support Vector Machine (SVM), XGBoost, and stacked ensemble approaches. Our findings demonstrate the potential of digital infrastructure metrics to serve as early indicators of regional innovation capacity, offering a data-driven foundation for targeted policymaking, strategic resource allocation, and the design of adaptive digital innovation ecosystems. Full article

Domestication is a translation theory in which the source text (to be translated) is matched to the foreign reader by erasing its original linguistic and cultural difference. This match aims at making the target text (translated text) more fluent. On the contrary, foreignization is a translation theory in which the foreign reader is matched to the source text. This paper mathematically explores the degree of domestication/foreignization in current translation practice of texts written in alphabetical languages. A geometrical representation of texts, based on linear combinations of deep–language parameters, allows us (a) to calculate a domestication index which measures how much domestication is applied to the source text and (b) to distinguish language families. An expansion index measures the relative spread around mean values. This paper reports statistics and results on translations of (a) Greek New Testament books in Latin and in 35 modern languages, belonging to diverse language families; and (b) English novels in Western languages. English and French, although attributed to different language families, mathematically almost coincide. The requirement of making the target text more fluent makes domestication, with varying degrees, universally adopted, so that a blind comparison of the same linguistic parameters of a text and its translation hardly indicates that they refer to each other. Full article

We compare the “classical” equations of type-token systems, namely Zipf’s laws, Heaps’ law and the relationships between their indices, with data selected from the Standardized Project Gutenberg Corpus (SPGC). Selected items all exceed 100,000 word-tokens and are trimmed to 100,000 word-tokens each. With the most egregious anomalies removed, a dataset of 8432 items is examined in terms of the relationships between the Zipf and Heaps’ indices computed using the Maximum Likelihood algorithm. Zipf’s second (size) law indices suggest that the types vs. frequency distribution is log–log convex, with the high and low frequency indices showing weak but significant negative correlation. Under certain circumstances, the classical equations work tolerably well, though the level of agreement depends heavily on the type of literature and the language (Finnish being notably anomalous). The frequency vs. rank characteristics exhibit log–log linearity in the “middle range” (ranks 100–1000), as characterised by the Kolmogorov–Smirnov significance. For most items, the Heaps’ index correlates strongly with the low frequency Zipf index in a manner consistent with classical theory, while the high frequency indices are largely uncorrelated. This is consistent with a simple simulation. Full article

Generally, following an omnibus (overall equality) test, multiple pairwise comparison (MPC) tests are typically conducted as the second step in a sequential testing procedure to identify which specific pairs (e.g., proportions) exhibit significant differences. In this manuscript, we develop maximum likelihood estimation (MLE) methods to construct three different types of confidence intervals (CIs) for multiple pairwise differences in proportions, specifically in contexts where both types of misclassifications (i.e., over-reporting and under-reporting) exist in multiple-sample binomial data. Our closed-form algorithm is straightforward to implement. Consequently, when dealing with multiple sample proportions, we can readily apply MPC adjustment procedures—such as Bonferroni, Šidák, and Dunn—to address the issue of multiplicity. This manuscript advances the existing literature by extending from scenarios with only one type of misclassification to those involving both. Furthermore, we demonstrate our methods using a real-world data example. Full article

Airlines profitability increasingly depends on the sale of ancillary items such as seat selection, baggage fees, etc. The modeling of ancillary items is becoming more important in the analytics literature. Much of the modeling is stylized and not immediately applicable. This paper contains a review of the approaches and modeling assumptions made in the literature. The focus is on the assumptions made so that models may be evaluated for how effective they are for applications and to highlight gaps in the literature. Full article

The Holy Bible is the most read book in the world, originally written in Aramaic, Hebrew, and Greek over a time span in the order of centuries by many people, and formed by a combination of various literary styles, such as stories, prophecies, poetry, instructions, and others. As such, the Bible is a complex text to be analyzed by humans and machines. This paper provides a systematic survey of the application of Artificial Intelligence (AI) and some of its subareas to the analysis of the Biblical scriptures. Emphasis is given to what types of tasks are being solved, what are the main AI algorithms used, and their limitations. The findings deliver a general perspective on how this field is being developed, along with its limitations and gaps. This research follows a procedure based on three steps: planning (defining the review protocol), conducting (performing the survey), and reporting (formatting the report). The results obtained show there are seven main tasks solved by AI in the Bible analysis: machine translation, authorship identification, part of speech tagging (PoS tagging), semantic annotation, clustering, categorization, and Biblical interpretation. Also, the classes of AI techniques with better performance when applied to Biblical text research are machine learning, neural networks, and deep learning. The main challenges in the field involve the nature and style of the language used in the Bible, among others. Full article

Traffic prediction, as a core task to alleviate urban congestion and optimize the transport system, has limitations in the integration of multimodal data, making it difficult to comprehensively capture the complex spatio-temporal characteristics of the transport system. Although some studies have attempted to introduce multimodal data, they mostly rely on resource-intensive deep neural network architectures, which have difficultly meeting the demands of practical applications. To this end, we propose a traffic prediction framework based on simple machine learning techniques that effectively integrates property features, amenity features, and emotion features (PAE features). Validated with large-scale real datasets, the method demonstrates excellent prediction performance while significantly reducing computational complexity and deployment costs. This study demonstrates the great potential of simple machine learning techniques in multimodal data fusion, provides an efficient and practical solution for traffic prediction, and offers an effective alternative to resource-intensive deep learning methods, opening up new paths for building scalable traffic prediction systems. Full article

Deoxyribonucleic acid, more commonly known as DNA, is a fundamental genetic material in all living organisms, containing thousands of genes, but only a subset exhibit differential expression and play a crucial role in diseases. Microarray technology has revolutionized the study of gene expression, with two primary types available for expression analysis: spotted cDNA arrays and oligonucleotide arrays. This research focuses on the statistical analysis of data from spotted cDNA microarrays. Numerous models have been developed to identify differentially expressed genes based on the red and green fluorescence intensities measured using these arrays. We propose a novel approach using a Gaussian copula model to characterize the joint distribution of red and green intensities, effectively capturing their dependence structure. Given the right-skewed nature of the intensity distributions, we model the marginal distributions using gamma distributions. Differentially expressed genes are identified using the Bayes estimate under our proposed copula framework. To evaluate the performance of our model, we conduct simulation studies to assess parameter estimation accuracy. Our results demonstrate that the proposed approach outperforms existing methods reported in the literature. Finally, we apply our model to Escherichia coli microarray data, illustrating its practical utility in gene expression analysis. Full article

Graduate salaries are a significant concern for graduates, employers, and policymakers, as various factors influence them. This study investigates determinants of graduate salaries in the UK, utilising survey data from HESA (Higher Education Statistical Agency) and integrating advanced machine learning (ML) explanatory techniques with statistical analytical methodologies. By employing multi-stage analyses alongside machine learning models such as decision trees, random forests and the explainability with SHAP stands for (Shapley Additive exPanations), this study investigates the influence of 21 socioeconomic and demographic variables on graduate salary outcomes. Key variables, including institutional reputation, age at graduation, socioeconomic classification, job qualification requirements, and domicile, emerged as critical determinants, with institutional reputation proving the most significant. Among ML methods, the decision tree achieved a standout with the highest accuracy through rigorous optimisation techniques, including oversampling and undersampling. SHAP highlighted the top 12 influential variables, providing actionable insights into the interplay between individual and systemic factors. Furthermore, the statistical analysis using ANOVA (Analysis of Variance) validated the significance of these variables, revealing intricate interactions that shape graduate salary dynamics. Additionally, domain experts’ opinions are also analysed to authenticate the findings. This research makes a unique contribution by combining qualitative contextual analysis with quantitative methodologies, machine learning explainability and domain experts’ views on addressing gaps in the existing identification of graduate salary predicting components. Additionally, the findings inform policy and educational interventions to reduce wage inequalities and promote equitable career opportunities. Despite limitations, such as the UK-specific dataset and the focus on socioeconomic and demographic variables, this study lays a robust foundation for future research in predictive modelling and graduate outcomes. Full article

This study explores the role of cognitive performance in the general health of older Europeans aged 50 and over, focusing on gender differences, using data from 336,500 respondents in the sixth wave of the Survey of Health, Aging, and Retirement in Europe (SHARE). Cognitive functioning was assessed through self-rated reading and writing skills, orientation in time, numeracy, memory, verbal fluency, and word-list learning. General health status was estimated by constructing a composite index of physical and mental health-related measures, including chronic diseases, mobility limitations, depressive symptoms, self-perceived health, and the Global Activity Limitation Indicator. Participants were classified into good or poor health status, and logistic regression models assessed the predictive significance of cognitive variables on general health, supplemented by a relative importance analysis to estimate relative effect sizes. The results indicated that males had a 51.1% lower risk of reporting poor health than females, and older age was associated with a 4.0% increase in the odds of reporting worse health for both genders. Memory was the strongest predictor of health status (26% of the model $R^2$), with a greater relative contribution than the other cognitive variables. No significant gender differences were found. While this study estimates the odds of reporting poorer health in relation to gender and various cognitive characteristics, adopting a lifespan approach could provide valuable insights into the longitudinal associations between cognitive functioning and health outcomes. Full article

As the levels of automation and reliance on modern artificial intelligence (AI) approaches increase across multiple industries, the importance of the human-centered perspective becomes more evident. Various actors in such industrial applications, including equipment operators and decision makers, have their needs and preferences that often do not align with the decisions produced by black-box models, potentially leading to mistrust and wasted productivity gain opportunities. In this paper, we examine these issues through the lenses of visual analytics and, more broadly, interactive visualization, and we argue that the methods and techniques from these fields can lead to advances in both academic research and industrial innovations concerning the explainability of AI models. To address the existing gap within and across the research and application fields, we propose a conceptual framework for visual analytics design and evaluation for such scenarios, followed by a preliminary roadmap and call to action for the respective communities. Full article

This study investigates how the Federal Open Market Committee’s (FOMC) statements impact healthcare spending, mental health trends, and stock performance in healthcare and tech sectors By analyzing FOMC’s sentiment from 2018 to 2024, we found that higher sentiment correlates with increased depressive disorders (2019–2021) and tech stock returns, especially for the “Magnificent Seven” (like Apple and Amazon). Although healthcare stocks showed weaker ties to sentiment, Granger causality tests suggest some influence, hinting at ways to adjust stock strategies based on FOMC trends. These results highlight how central bank communication can shape both mental health dynamics and investment decisions in healthcare and technology. Full article