DocumentCode
2282436
Title
Applying decision tree to predict bankruptcy
Author
Zibanezhad, Elahe ; Foroghi, Daryush ; Monadjemi, Amirhassan
Author_Institution
Mobarake Branch, Islamic Azad Univ., Isfahan, Iran
Volume
4
fYear
2011
fDate
10-12 June 2011
Firstpage
165
Lastpage
169
Abstract
Bankruptcy is one of the most important considered issues in financial management and investing. Investors always try to predict probability of bankruptcy in order to prevent wasting their capital. Therefore they are search for methods to forecast a potential crisis in the bankruptcy prediction domain. Data mining is an approach which produces prediction models in different grounds by using statistical techniques and artificial intelligence. In this study, the Clementine software and the method of classification and regression tree are used for mining financial variables. The predictor variables are collected from financial statements of firms accepted in Tehran Stock Exchange during the 1996 to 2009. The 94.5% accuracy of the model and extracted rules indicate that the suggested method has an acceptable efficiency to predict bankruptcy. Also the most important financial ratios are determined in decision making.
Keywords
data mining; decision trees; financial management; pattern classification; regression analysis; Clementine software; Tehran stock exchange; artificial intelligence; bankruptcy; classification method; data mining; decision making; decision tree; financial management; potential crisis; regression tree; statistical technique; Complexity theory; Data mining; Decision trees; Finance; Marketing and sales; Profitability; Software; Bankruptcy; Decision Tree; Predicting Bankruptcy;
fLanguage
English
Publisher
ieee
Conference_Titel
Computer Science and Automation Engineering (CSAE), 2011 IEEE International Conference on
Conference_Location
Shanghai
Print_ISBN
978-1-4244-8727-1
Type
conf
DOI
10.1109/CSAE.2011.5952826
Filename
5952826
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