Neural networks and the mathematics of chaos-an investigation of these methodologies as accurate predictors of corporate bankruptcy

Research is given which investigates the use of neural networks as a classification tool to predict corporate bankruptcy. It also examines if a branch of chaos theory could be used as a forecasting tool. It compares neural networks with an alternative corporate bankruptcy prediction model Altman´s Z-score model (1977) on a small data sample and illustrates that neural networks can yield superior results