Risk Assessment of Polish Joint Stock Companies: Prediction of Penalties or Compensation Payments

Corporate misconduct is a huge and widespread problem in the economy. Many companies make mistakes that result them having to pay penalties or compensation other businesses. Some of these cases are so serious they take toll on company’s financial condition. The purpose this paper was create evaluate an algorithm which can predict whether company will have penalty discover what indicators may signal it. author addresses questions by applying several supervised machine learning methods. This help institutions such as banks decide lend money not good standing. research based information contained statements listed Warsaw Stock Exchange NewConnect. Finally, different methods compared, gradient boosting shown higher accuracy than others. conclusion values ratios likely next year.