Benchmarking International 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 amounts of financial data, typically in the form of financial statements, is widespread. Managers and stakeholders are in need of a tool allowing them to quickly and accurately analyze this data. An emerging technique that may be suited for this application is the self-organizing map. The purpose of this study was to evaluate the performance of self-organizing maps for the purpose of financial benchmarking of international pulp and paper companies. For the study, financial data, in the form of seven financial ratios, was collected, using the Internet as the primary source of information. A total of 76 companies, and six regional averages, were included in the study. The time 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 annual reports. The results of the study indicate that self-organizing maps can be feasible tools for the financial benchmarking of large amounts of financial data.