Proceedings of the 2014 International Conference on Management Science and Management Innovation

A Study of Financial Distress Prediction based on Discernibility Matrix and ANN

Authors
Xin-Zhong Bao, Xiu-Zhuan Meng, Hong-Yu Fu
Corresponding Author
Xin-Zhong Bao
Available Online June 2014.
DOI
https://doi.org/10.2991/msmi-14.2014.66How to use a DOI?
Keywords
Rough set, Artificial neural network, Financial distress prediction.
Abstract
Financial distress prediction is a significant issue that concerns stakeholders of enterprises. Due to the limitation of the samples available, most studies of financial prediction generally catagorize the financial situations of companies by whether they are bankrupt or specially treated in the stock market. In addition, the variables for prediction are determined mainly by subjective judgments. In order to overcome the influence of these limitations, this paper establishes a reduced variable system with sufficient information by rough set discernibility matrix method, and forms a progressive classification of financial situations by hierarchical clustering. These classifications are transformed as the target value of artificial neural network output layer to enhance the interpretation ability of the whole network. Combined with the inputs determined by Rough Set reduction, a neural network model is established to predict the financial distress, especially the turning point of financial degeneration.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Proceedings
2014 International Conference on Management Science and Management Innovation (MSMI 2014)
Part of series
Advances in Economics, Business and Management Research
Publication Date
June 2014
ISBN
978-94-6252-015-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/msmi-14.2014.66How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Xin-Zhong Bao
AU  - Xiu-Zhuan Meng
AU  - Hong-Yu Fu
PY  - 2014/06
DA  - 2014/06
TI  - A Study of Financial Distress Prediction based on Discernibility Matrix and ANN
BT  - 2014 International Conference on Management Science and Management Innovation (MSMI 2014)
PB  - Atlantis Press
SP  - 361
EP  - 365
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-14.2014.66
DO  - https://doi.org/10.2991/msmi-14.2014.66
ID  - Bao2014/06
ER  -