• 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