Recognizing Financial Distress Patterns Using a Neural Network Tool

Coats, Pamela K.; Fant, L. Franklin

doi:10.2307/3665934

Cited by 355 publications

(210 citation statements)

References 20 publications

Supporting

Mentioning

201

Contrasting

Unclassified

Order By: Relevance

“…Crisis heart is usually local, however, unnoticed negative indicators can involve the whole system. According to Hauschildt (2000), , Peters (1995), Pearson (1998), Coat, Fant (1993) it can be claimed that crisis is the accidental critical moment determined by the formed factors which disturb normal functioning of the system and it cannot develop according to the planned trajectory.…”

Section: Global Crisismentioning

confidence: 99%

Conceptualization of Crisis Situation in a Company / Įmonės Krizinės Situacijos Konceptualizacija

Valackienė

Virbickaitė

2011

Journal of Business Economics and Management

View full text Add to dashboard Cite

Abstract. The paper highlights theoretical construct of crisis situation in a company emphasizing the methodological positions of a social phenomenon. Applying systemic analysis of crisis situation in a company the paper discusses hardly spread social phenomenon, i.e. occurrence and expression of crisis situation in a company. On the basis of retrospective analysis of crisis situation, both crisis environment and bankruptcy features are presented and principal keywords defi ned with reference to crisis in a company as a social phenomenon and related to its environment: human, company-based, national and global. It shows the complexity of the scientifi c research object, that brings meaningful input into the analysis of crisis features in company life cycle. The paper aims at discussing and presenting critical reviews of crisis situation interpretations with emphasis on methodological positions of social phenomenon in different disciplines. The differences and links between crisis and crisis situation are also explained. Through explanation of logical construct of the paper, the authors specify crisis concept in a company: distinguishing negative changes in a company, that make the company staff apply crisis communication process and instrumentalities. In the above mentioned context the problem of crisis situation in a company remains signifi cant from psychological, social and economic and managerial perspectives.

show abstract

Section: Global Crisismentioning

confidence: 99%

Conceptualization of Crisis Situation in a Company / Įmonės Krizinės Situacijos Konceptualizacija

Valackienė

Virbickaitė

2011

Journal of Business Economics and Management

View full text Add to dashboard Cite

show abstract

“…Subsequently, other authors (Coats and Fant, 1993;Wilson and Sharda, 1994;Yang, 1999;Tan and Dihardjo, 2001) found ANNs a promising and robust technique outperforming discriminant analysis in bankruptcy prediction. O'Leary (1998) surveyed the application of neural networks to corporate failure prediction, concluding that the results were at least as good as those generated by other techniques.…”

Section: Introductionmentioning

confidence: 99%

Improving bankruptcy prediction with Hidden Layer Learning Vector Quantization

Neves¹,

Vieira²

2006

European Accounting Review

View full text Add to dashboard Cite

A Hidden Layer Learning Vector Quantization (HLVQ), neural networklearning algorithm is used for correcting the outputs of Multilayer Perceptrons (MLP) for predicting corporate bankruptcy. We call this method HLVQ-C, and it is shown that it outperforms both discriminant analysis and traditional neural networks while significantly reducing type I error, which is the type of error that has the highest costs for banks. Moreover, our approach gives an estimation of the prediction robustness thus providing a useful measure of credit risk, which is of great interest for banks, insurance companies and creditors in general. We also show that unbalanced samples, containing more financially sound firms than bankrupt firms, place a strong bias on the classifiers thus leading to a deterioration of type I error accuracy. Although many studies have been published on bankruptcy prediction using neural networks or discriminant analysis, they used mainly US or UK samples of very limited size. Our study is based on industrial French firms, uses a data-set of 583 bankrupt firms over the period 1998-2000 and tests the effects of different proportions of non-bankrupt firms in the sample. Attention was also given to feature selection to reduce the dimensionality of the problem.

show abstract

“…In practice, a ratio may signal financial distress if it is higher or lower than normal. These problems together with issues such as, bias of extreme data points, the multivariate assumption of normality and equal group variance, may ensure MDA is unsuited to the complex nature, boundaries and interrelationships of financial ratios (Coats & Fant 1993).…”

Section: Multivariate Approach Versus Ann As Predictors Of Insolvencymentioning

confidence: 99%

International Journal of Business and Management, Vol. 3, No. 1, January 2008

IJBM¹

2009

IJBM

View full text Add to dashboard Cite

This note examines the day-of-the-week effect in Australian daily stock returns at the market and industry levels and for small capitalization stocks from Monday 9 September 1996 to Friday 10 November 2006. A regression-based approach is employed. The results indicate that while the Australian market overall provides no evidence of daily seasonality, there is evidence of a small cap day-of-the-week effect with systematically higher returns on Thursdays and Fridays. The analysis of the sub-market returns is also partly supportive of day-of-the-week effects in the banking, diversified financial, energy, healthcare, insurance, materials and retail industries. However, these rarely coincide with the lower Monday or lower Tuesday returns typified in earlier work.

show abstract

Recognizing Financial Distress Patterns Using a Neural Network Tool

Cited by 355 publications

References 20 publications

Conceptualization of Crisis Situation in a Company / Įmonės Krizinės Situacijos Konceptualizacija

Conceptualization of Crisis Situation in a Company / Įmonės Krizinės Situacijos Konceptualizacija

Improving bankruptcy prediction with Hidden Layer Learning Vector Quantization

International Journal of Business and Management, Vol. 3, No. 1, January 2008

Contact Info

Product

Resources

About