Financial Distress Prediction Using Different Pattern Recognition Methods

  • Wiesław Pietruszkiewicz
  • Leonard Rozenberg
Conference paper


Prediction of possible financial distress is one of the most important tasks in business. This paper presents application of several pattern recognition methods in the field of financial distress prediction. All experiments were performed in troublesome Polish environment


Pattern recognition financial distress crisis memory based methods neural networks Discriminate Analysis 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

6 References

  1. [1]
    Altman E.I. 1968 ‘Financial Ratio, Discriminant Analysis and Prediction of Corporate Bankruptcy'. The Journal of Finance, September, pp.589–609.Google Scholar
  2. [2]
    Altman E.I. 2000 ‘Prediction Financial Distress of Companies: Revisiting the Z-SCORE and ZETA Models'. Working Paper, Stern School of Business, New York University.Google Scholar
  3. [3]
    Atiya A. F. 2001 ‘Bankruptcy Prediction for Credit Risk Using Neural Networks: A Survey and New Results'. IEEE Transactions on Neural Networks Vol. 12 No. 4, pp.929–935.CrossRefGoogle Scholar
  4. [4]
    Fulmer J.G., Moon J.E., Gavin T.A., Erwin M.J. 1984 ‘A Bankruptcy Classification Model for Small Firms'. Journal of Commercial Bank Lending, pp.25–37.Google Scholar
  5. [5]
    Michie D., Spiegelhalter D.J., Taylor C.C. 1994 ‘Machine Learning, Neural and Statistical Classification'. Ellis Horwood, New York.Google Scholar
  6. [6]
    Ohlson, J. 1980 ‘Financial ratios and the probabilistic prediction of bankruptcy'. Journal of Accounting Research, pp. 109–131.Google Scholar
  7. [7]
    Pietruszkiewicz W. 2003 ‘An Application of the Discrete Dynamical System models in an Early Warning System Forecasting Financial Distress', ‘International Workshop Control and Information Technology IWCIT'03'. Silesian University of Technology, Gliwice, pp.26–30.Google Scholar
  8. [8]
    Rozenberg L. 2002 ‘Sanacja finansowa — metody poprawy kondycji finansowej przedsiębiorstwa', ‘Praktyka zarządzania kryzysem w przedsiębiorstwie’ (ed. Kozyra B., Zelek A.). Wydawnictwo Zachodniopomorskiej Szkoły Biznesu, Szczecin, pp. 167–186 (in polish).Google Scholar
  9. [9]
    Tyree E. K., Long J. A. 1994 ‘Assessing Financial Distress with Probabilistic Neural Networks'. Working Paper, City University of London.Google Scholar
  10. [10]
    Wilson R.L., Sharda R. 1994 ‘Bankruptcy Prediction Using Neural Networks'. Decision Support Systems No 11, pp.545–557.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  • Wiesław Pietruszkiewicz
    • 1
  • Leonard Rozenberg
    • 1
  1. 1.Technical University of Szczecin Faculty of Computer ScienceSzczecinPoland

Personalised recommendations