Abstract
Bankruptcy prediction [1, 2, 3] can be defined as the process where bankruptcy is projected along with several financial distress measures in corporate institutions and public firms. It is an active research area in business and mathematical finance. The importance of bankruptcy is mainly attributed to the creditors and investors in assessing the likelihood that an organization can become bankrupt. Bankruptcy investigation is generally expressed as function of the data availability. For public organizations that were either bankrupt or not, there are a large number of accounting ratios [4] that indicate danger which are calculated and other relevant explanatory variables [3] which currently exist. As a result of this, the topic of bankruptcy is well versed toward testing the complex and data-intensive prediction techniques [5].
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Altman EL (1993) Corporate financial distress and bankruptcy. Wiley, New York
Chaudhuri A (2013) Bankruptcy prediction using Bayesian, hazard, mixed logit and rough Bayesian models: a comparative analysis, computer and information. Science 6(2):103–125
Chaudhuri A, De K (2011) Fuzzy support vector machine for bankruptcy prediction. Appl Soft Comput 11(2):2472–2486
Altman E (1968) Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. J Financ 23(4):589–609
Chaudhuri A (2011) Predicting corporate bankruptcy using soft computing techniques, Technical Report, NIIT University, Neemrana
Altman E, Haldeman R, Narayanan P, Analysis ZETA (1977) A new model to identify bankruptcy risk of corporations. J Bank Financ 1(1):29–54
Agarwal V, Taffler R (2008) Comparing the performance of market based and accounting based bankruptcy prediction models. J Bank Financ 32(8):1541–1551
Altman E (2007) Revisiting credit scoring models in a Basel 2 environment, lecture at National Taiwan University, Available at: www.fin.ntu.edu.tw/~hwangdar/94emba19.ppt
Beaver WH, McNichols MF, Rhie JW (2005) Have financial statements become less informative? Evidence from the ability of financial ratios to predict bankruptcy. Rev Acc Stud 10(1):93–122
Bellovary JL, Giacomino D, Akers M (2007) A review of bankruptcy prediction studies: 1930 to present. J Financ Educ 33:1–43
Chava S, Jarrow R (2004) Bankruptcy prediction with industry effect, market versus accounting variables and reduced form of credit risk models. Rev Financ 8(4):537–569
Hensher DA, Jones S (2007) Forecasting corporate bankruptcy: optimizing the performance of the mixed logit model. Abacus 43(3):241–264
Hillegeist S, Cram D, Keating E, Lundstedt K (2004) Assessing the probability of bankruptcy. Rev Acc Stud 9(1):5–34
Jones FL (1987) Current techniques in bankruptcy prediction. J Account Lit 6:131–164
Martin D (1977) Early warning of Bank failure. J Bank Financ 1(3):249–276
McKee TE (2003) Rough sets bankruptcy prediction models versus auditor signaling rates. J Forecast 22(8):569–586
Ohlson JA (1980) Financial ratios and probabilistic prediction of bankruptcy. J Account Res 18(1):109–131
Ravi Kumar P, Ravi V (2007) Bankruptcy prediction in banks and firms via statistical and intelligent techniques – a review. Eur J Oper Res 180(1):1–28
Sarkar S, Sriram RS (2001) Bayesian models for early warning of Bank failures. Manag Sci 47(11):1457–1475
Shumway T (2001) Forecasting bankruptcy more accurately: a simple hazard model. J Bus 74(1):101–124
Sun L, Shenoy PP (2007) Using Bayesian networks for bankruptcy prediction: some methodological issues. Eur J Oper Res 180(2):738–753
Tam KY (1991) Neural network models and the prediction of Bank bankruptcy. Omega 19(5):429–445
Weiss LA, Capkun V (2004) The impact of incorporating the cost of errors into Bankruptcy prediction models. Working Paper
Wiginton JC (1980) A note on the comparison of logit and discriminant models of consumer credit behavior. J Financ Quant Anal 15(3):757–770
Zavgren C (1983) The prediction of corporate failure: the state of the art. J Account Lit 2(1):1–37
Zmijewski ME (1984) Methodological issues related to the estimation of financial distress prediction models. J Account Res 22(Supplement):59–82
Jones S, Hensher DA (2004) Predicting firm financial distress: a mixed logit model. Account Rev 79(4):1011–1038
Goodfellow I, Bengio Y, Courville A (2016) Deep learning. MIT Press, Cambridge
Patterson J, Gibson A (2016) Deep learning: a Practitioner’s approach, 1st edn. O’Reilly, Sebastopol
Burges CJC (1998) A tutorial on support vector machine for pattern recognition, vol 1–43. Kluwer Academic Publishers, Boston
Hutchinson B, Deng L, Yu D (2013) Tensor deep stacking networks. IEEE Trans Pattern Anal Mach Intell 35(8):1944–1957
Korean Construction Companies Dataset: NICE DnB http://www.nicednb.com
Hajek P, Michalak K (2013) Feature selection in corporate credit rating prediction. Knowl Based Syst 51:72–84
Myoung JK, Ingoo H (2003) The discovery of experts’ decision rules from qualitative bankruptcy data using genetic algorithms. Expert Syst Appl 25(4):637–646
Chaudhuri A (2014) Modified fuzzy support vector machine for credit approval classification. AI Commun 27(2):189–211
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Chaudhuri, A., Ghosh, S.K. (2017). Introduction. In: Bankruptcy Prediction through Soft Computing based Deep Learning Technique. Springer, Singapore. https://doi.org/10.1007/978-981-10-6683-2_1
Download citation
DOI: https://doi.org/10.1007/978-981-10-6683-2_1
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-6682-5
Online ISBN: 978-981-10-6683-2
eBook Packages: Computer ScienceComputer Science (R0)