An Empirical Comparison of Bankruptcy Models -Evidence from Taiwan
نویسنده
چکیده
The main objective of a financial distress prediction model is to generate early warning signals.In this paper, we compare five bankruptcy prediction models, logit ,ANN ,CART, C5.0 and GP decision tree. Our empirical results reveal that the GP decision tree can outperform all the classifiers either in overall percentage of correct or k-fold cross validation test in out-sample. That is to say, GP decision tree model has the highest accuracy and lowest expected misclassification costs. It can provide an efficient alternative to discriminate financial distress problems in Taiwan. Furthermore, the result is feasible to build a financial distress prediction model.
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