application of genetic algorithm in development of bankruptcy predication theory case study: companies listed on tehran stock exchange

Authors

mohsen hajiamiri

department of industrial engineering, zahedan branch, islamic azad university, zahedan, iran mohammad reza shahraki

department of industrial engineering, university of sistan and baluchistan, zahedan, iran seyyed masoud barakati

university of sistan and baluchistan, zahedan, iran

abstract

the bankruptcy prediction models have long been proposedas a key subject in finance. the present study, therefore, makes aneffort to examine the corporate bankruptcy prediction through employmentof the genetic algorithm model. furthermore, it attempts to evaluatethe strategies to overcome the drawbacks of ordinary methods forbankruptcy prediction through application of genetic algorithms. thesample under investigation in this research includes 70 pairs of bankruptand non-bankrupt companies during 2001-2011. having examined theobtained data from financial statements of the companies under study,5 financial independent variables were identified so as to be used in themodel. the results indicated that employment of genetic algorithm in predicting financial bankruptcy is highly effective, to the extent it managedto correctly predict the financial bankruptcy of companies twoyears before the base year, one year before the base year and the baseyear at accuracies of 96.44, 97.94 and 95.53, respectively.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

Application of Genetic Algorithm in Development of Bankruptcy Predication Theory Case Study: Companies Listed on Tehran Stock Exchange

The bankruptcy prediction models have long been proposedas a key subject in finance. The present study, therefore, makes aneffort to examine the corporate bankruptcy prediction through employmentof the genetic algorithm model. Furthermore, it attempts to evaluatethe strategies to overcome the drawbacks of ordinary methods forbankruptcy prediction through application of genetic algorithms. Thesa...

full text

Using the Imperialistic Competitive Algorithm Model in Bankruptcy Prediction and Comparison with Genetic Algorithm Model in Listed Companies of Tehran Stock Exchange

Bankruptcy prediction is a major issue in classification of companies. Since bankruptcy is extremely costly, investors, owners, managers, creditors, and government agencies are interested in evaluating the financial status of companies. This study tried to predict bankruptcy among companies registered in Tehran Stock Exchange (Iran) by designing imperialist competitive algorithm and genetic alg...

full text

Impact of Speculative Bubble on Stock Returns in Companies Listed on Tehran Stock Exchange

Recent studies show that individual investors tend to speculate on stock markets and hold shares with a lottery-like return. For this speculation of people have a significant impact on stock returns, individual investors must trade the same shares with the same time. The purpose of this study was to investigate the effect of the speculative bubble on the stock returns of companies in Iran. Foll...

full text

Effect of Profitability Indices on the Capital Structure of Listed Companies in Tehran Stock Exchange

The main objective of this research is the index of profitability on the capital structure of listed companies on the Stock Exchange of Tehran. Statistical population consisted of all above companies that 138 companies were selected in time zone of 2011-2014 after screening method (systematic elimination). The research method is descriptive and correlation and study variable is profitability in...

full text

An Adaptive Fuzzy Neural Network Model for Bankruptcy Prediction of Listed Companies on the Tehran Stock Exchange

Nowadays, prediction of corporate bankruptcy is one of the most important issues which have received great attentions among academia and practitioners. Although several studies have been accomplished in the field of bankruptcy prediction, less attention has been devoted for proposing a systematic approach based on fuzzy neural networks.  The present study proposes fuzzy neural networks to predi...

full text

The Effect of Internal Control Weakness on Investment Efficiency of Companies Listed in Tehran Stock Exchange

This study explores the effect of internal control weakness on investment efficiency of companies listed in Tehran Stock Exchange. The statistical population included all companies listed in Tehran Stock Exchange during the time period 2012-2015. Purposive sampling was the sampling method. Given the theoretical principles and the research literature, two hypotheses were proposed which were test...

full text

My Resources

Save resource for easier access later


Journal title:
shiraz journal of system management

جلد ۲، شماره ۱، صفحات ۹۱-۱۰۳

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023