Insolvency Prediction of Irish Companies Using Backpropagation and Fuzzy ARTMAP Neural Networks

Anatoli Nachev

Insolvency Prediction of Irish Companies Using Backpropagation and Fuzzy ARTMAP Neural Networks

Anatoli Nachev

Business Information Systems

Research output: Chapter in Book or Conference Publication/Proceeding › Conference Publication › peer-review

Abstract

This Study explores experimentally the potential of BPNNs and Fuzzy ARTMAP neural networks to predict insolvency of Irish firms. We used financial information for Irish companies for a period of six years, preprocessed properly in order to be used with neural networks. Prediction results show that with certain network parameters the Fuzzy ARTMAP model outperforms BPNN. It outperforms also self-organising feature maps as reported by other studies that use the same dataset. Accuracy of predictions was validated by ROC analysis, AUC metrics, and leave-one-out cross-validation.

Original language	English (Ireland)
Title of host publication	ENTERPRISE INFORMATION SYSTEMS-BK
Publisher	SPRINGER-VERLAG BERLIN
Volume	24
ISBN (Electronic)	1865-1348
ISBN (Print)	1865-1348
Publication status	Published - 1 Jan 2009

Authors (Note for portal: view the doc link for the full list of authors)

Authors
Nachev, A;Hill, S;Stoyanov, B

Cite this

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title = "Insolvency Prediction of Irish Companies Using Backpropagation and Fuzzy ARTMAP Neural Networks",

abstract = "This Study explores experimentally the potential of BPNNs and Fuzzy ARTMAP neural networks to predict insolvency of Irish firms. We used financial information for Irish companies for a period of six years, preprocessed properly in order to be used with neural networks. Prediction results show that with certain network parameters the Fuzzy ARTMAP model outperforms BPNN. It outperforms also self-organising feature maps as reported by other studies that use the same dataset. Accuracy of predictions was validated by ROC analysis, AUC metrics, and leave-one-out cross-validation.",

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AB - This Study explores experimentally the potential of BPNNs and Fuzzy ARTMAP neural networks to predict insolvency of Irish firms. We used financial information for Irish companies for a period of six years, preprocessed properly in order to be used with neural networks. Prediction results show that with certain network parameters the Fuzzy ARTMAP model outperforms BPNN. It outperforms also self-organising feature maps as reported by other studies that use the same dataset. Accuracy of predictions was validated by ROC analysis, AUC metrics, and leave-one-out cross-validation.

M3 - Conference Publication

SN - 1865-1348

VL - 24

BT - ENTERPRISE INFORMATION SYSTEMS-BK

PB - SPRINGER-VERLAG BERLIN

ER -

Insolvency Prediction of Irish Companies Using Backpropagation and Fuzzy ARTMAP Neural Networks

Abstract

Authors (Note for portal: view the doc link for the full list of authors)

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Cite this