One of the most important research issues in finance is building effective corporate bankruptcy prediction models because they are essential for the risk management of financial institutions. Researchers have applied various data-driven approaches to enhance prediction performance including statistical and artificial intelligence techniques, and many of them have been proved to be useful. Case-...

recent bankruptcy of big companies all over the world and fluctuations in iran's stock market require that some methods be developed for the evaluation of companies' financial potential. different models are used for the prediction of bankruptcy and the evaluation of organizational financial situation. environmental changes and increasing competition among agencies led to companies&ap...

We develop a model of neural networks to study the bankruptcy of U.S. banks, taking into account the specific features of the recent financial crisis. We combine multilayer perceptrons and self-organizing maps to provide a tool that displays the probability of distress up to three years before bankruptcy occurs. Based on data from the Federal Deposit Insurance Corporation between 2002 and 2012,...

The recent world financial crisis has increased the number of bankruptcies in numerous countries and has resulted in a new area of research which responds to the need to predict this phenomenon, not only at the level of individual countries, but also at a global level, offering explanations of the common characteristics shared by the affected companies. Nevertheless, few studies focus on the pr...

One purpose of this paper is to propose the hybrid neural network models for bankruptcy prediction. The proposed hybrid neural network models are, respectively, a MDA model integrated with financial ratios, a MDA model integrated with financial ratios and intellectual capital ratios, a MDA-assisted neural network model integrated with financial ratios, and a MDA-assisted neural network model in...

Data mining is widely used in today’s dynamic business environment as a manager’s decision making tool, however, not many applications have been used in accounting areas where accountants deal with large amounts of operational as well as financial data. The purpose of this research is to propose a multiple criteria linear programming (MCLP) approach to data mining for bankruptcy prediction. A m...

Empirical bankruptcy prediction models have been proposed and widely used in the last decades or so. Historic solvent and default firm data are collected and labeled appropriately. Statistical and neural network models are then “trained” to fit these data. A major problem is the imbalance of data, i.e. much more solvent data than default data. We propose a auto-associative neural network(AANN) ...

................................................................................................... vii CHAPTER 1. OVERVIEW OF THE STUDY............................................................. 1 Case-Based Reasoning (CBR) .................................................... 2 Bankruptcy Prediction Modeling ................................................ 5 Research Objectives.................

After the burst of the bubble economy in 1990, the Japanese economy has been on a downward slide and many companies have been faced with financial difficulties. Hence, a certain prediction model to assess the financial distress of Japanese firms is required. This paper presents some empirical results of a study regarding financial ratios as predictors of Japanese corporate failure, evidenced by...