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Bankruptcy Prediction using Artificial Neural Network

Author(s):

Prajakta Aniruddha Jadhav , Bharati vidyapeeth college of engineering for women; Shital Jadhav, Bharati vidyapeeth college of engineering for women; Chaitali Goley, Bharati vidyapeeth college of engineering for women; Darshana Deshmukh, Bharati vidyapeeth college of engineering for women, Select

Keywords:

Bankruptcy, Artificial Neural Network (ANN)

Abstract

Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. The application and benefits of data mining and machine learning techniques to construct prediction models in the field of corporate bankruptcy. It analyzes a dataset of 60 companies. Findings show that neural network is recommended as the best model to predict corporate bankruptcy. Findings also show that the proper use and selection of data mining techniques help to enhance the prediction accuracy of the models. Financial organizations can significantly benefit from using these prediction models as they allow them to anticipate the status of businesses in the future and make decisions accordingly.

Other Details

Paper ID: IJSRDV6I21638
Published in: Volume : 6, Issue : 2
Publication Date: 01/05/2018
Page(s): 3667-3669

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