Search results for "Bankruptcy prediction"
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Towards Bankruptcy Prediction: Deep Sentiment Mining to Detect Financial Distress from Business Management Reports
2018
Due to their disclosure required by law, business management reports have become publicly available for a large number of companies, and these reports offer the opportunity to assess the financial health or distress of a company, both quantitatively from the balance sheets and qualitatively from the text. In this paper, we analyze the potential of deep sentiment mining from the textual parts of business management reports and aim to detect signals for financial distress. We (1) created the largest corpus of business reports analyzed qualitatively to date, (2) defined a non-trivial target variable based on the so-called Altman Z-score, (3) developed a filtering of sentences based on class-co…
An Application of Hybrid Models in Credit Scoring
2000
The predictive capability of parametric and non-parametric models in solving problems related to financial classification has been widely proved in empirical research carried out in the financial field, particulary in problems like bond rating, bankruptcy prediction and credit scoring. However, recently, it has been shown that a combination of different models generally reduces the prediction error, so that the best alternative to consider may not be a specific model but a combination of them. In this paper, we study hybrid systems based on the aggregation of individual (parametric and nonparametric) models. Our hybrids are built by using both parametric and non parametric models as the sys…
COMPLEX ANALYSIS OF COMPANY BANKRUPTCY FORECASTING: THEORETICAL INSIGHT
2018
In modern conditions for dynamic and competitive businesses, more and more companies face financial problems and eventually go bankrupt. A noteworthy trend: not only new companies that have not yet managed to establish themselves in the market go bankrupt but also large companies operating for years and maintaining good traditions. Bankruptcies of companies cause many problems not only for the companies themselves but also for the state and many members of society. Thus, it is crucial to evaluate the financial state of a company and its activity results as accurately and early as possible when forecasting the possibility of a bankruptcy. The paper recommends a complex analysis methodology f…