Research Article AI-Based Prediction of Capital Structure: Performance Comparison of ANN SVM and LR Models Jesus Cuauhtemoc Tellez Gaytan , 1 Karamath Ateeq , 2 Aqila Raﬁuddin , 3 Haitham M. Alzoubi , 4 Taher M. Ghazal , 2,5 Tariq Ahamed Ahanger , 6 Sunita Chaudhary , 7 and G. K. Viju 8 1 Business School, Tecnol´ ogico de Monterrey, Monterrey, Mexico 2 School of Information Technology, Skyline University College, Sharjah, UAE 3 Business School, under grant of FAIR Tecnol´ ogico de Monterrey, Monterrey, Mexico 4 School of Business, Skyline University College, Sharjah, UAE 5 Center for Cyber Security, Faculty of Information Science and Technology, Universiti Kebangsaan Malaysia (UKM), Bangi, Selangor, Malaysia, UAE 6 Department of Management Information Systems, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia 7 Computer Science and Engineering, Marudhar Engineering College, Bikaner, Rajasthan, India 8 Post Graduate Studies, University of Garden City, Khartoum, Sudan Correspondence should be addressed to G. K. Viju; prof.gkviju@ugc.edu.sd Received 26 May 2022; Revised 16 July 2022; Accepted 1 August 2022; Published 19 September 2022 Academic Editor: Vijay Kumar Copyright © 2022 Jesus Cuauhtemoc Tellez Gaytan et al. is is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Capital structure is an integral part of the corporate ﬁnance that sources the funds to ﬁnance growth and operations. Managers always have to maintain value of the ﬁrm to be higher than the cost of capital in order to maximize the shareholders wealth. Empirical studies have used sources of ﬁnance like debt and equity as variables of capital structure. A choice between debt and equity ﬁnance analyzes the ﬁrm’s ability to perform under the ﬁnancially constrained environment to attain the sustainable growth. erefore, it gives rise to a dire need to estimate the cost of capital precisely. We examined the capital structure of top ten market capitalization of the stock markets included in MSCI Emerging index with the use of artiﬁcial neural networks, support vector regression, and linear regression in forecasting methods. e capital structure is measured as the proportion of total debt over total equity (Tang et al., 1991). Other ﬁnancial ratios such as proﬁtability, liquidity, solvent, and turnover ratios were considered as drivers of the capital structure. Applying logistic and hyperbolic tangent activation functions, it was concluded that ANN has a great potential of replacing other traditional forecasting models with the nonstationary data. is research contributes with a new dimension for estimation through diﬀerent activation functions. ere is a possibility of ANN dominance as compared to the other models applied for predictability in ﬁnancial markets. 1. Introduction Artiﬁcial intelligent systems (AI) and machine learning (ML) have transformed the decision-making from human with an aim to improve quality of business and investments [1]. e dynamic environment is accelerated with creation of complexity in systems resulting in increased competition for which there is a need for a quick and better information decision system. e application of AI tools like artiﬁcial neural network (ANN) serves as best alternative to estimate the returns and build a positive vision, deliver more value, and radically improve the quality of business. ere are many advances of AI in business in past few years, but implementation in accounting and ﬁnance is at a nascent Hindawi Computational Intelligence and Neuroscience Volume 2022, Article ID 8334927, 13 pages https://doi.org/10.1155/2022/8334927