A Framework for Business Failure Prediction


Islek I., Atakli I. M., Öğüdücü Ş.

16th International Conference on Artificial Intelligence and Soft Computing (ICAISC), Zakopane, Polonya, 11 - 15 Haziran 2017, cilt.10246, ss.74-83 identifier identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası: 10246
  • Doi Numarası: 10.1007/978-3-319-59060-8_8
  • Basıldığı Şehir: Zakopane
  • Basıldığı Ülke: Polonya
  • Sayfa Sayıları: ss.74-83
  • İstanbul Teknik Üniversitesi Adresli: Evet

Özet

Business failure prediction systems help predict financial failures before they actually happen and provide an early warning for enterprises. Using machine learning techniques, instead of traditional statistical models, has brought a considerable increase in performance into the area of business failure prediction. This paper presents a framework for predicting business failures by using different machine learning techniques. We, also, implemented a novel model for business failure prediction based on NARX (nonlinear autoregressive network with exogenous inputs) feedback neural network to be included into this framework which is a recurrent dynamic network with feedback connections. Detailed experiments are conducted to compare the performance of these approaches. Especially, for the long-term business failure predictions, there are no other papers investigating the performance of NARX. To the best of our knowledge, this is the first time NARX algorithm is applied for long-term business failure prediction.