Publication detail

The Impact of Methodology on the Effectiveness of Bankruptcy Modeling

KARAS, M. REŽŇÁKOVÁ, M.

Original Title

The Impact of Methodology on the Effectiveness of Bankruptcy Modeling

Type

conference paper

Language

English

Original Abstract

The prevailing opinion in literature is that the accuracy of bankruptcy models cannot be appreciably improved by the choice of classification algorithm. A reflection of this conviction is the frequent usage of parametric methods. However, the nature of financial data places a limitation on the accuracy of these methods. An analysis of 1908 Czech industrial enterprises from 2004 to 2011 reveals that a nonparametric method, if used for the selection of model variables as well as the actual classification, can yield significantly better results than the traditional parametric approach.

Keywords

bankruptcy prediction models, boosted trees, stepwise discriminant analysis

Authors

KARAS, M.; REŽŇÁKOVÁ, M.

RIV year

2013

Released

16. 7. 2013

ISBN

978-1-61804-198-2

Book

Recent Advances in Economics and Business Administration: Proceedings of the 2013 International Conference on Economics and Business Adminstration (EBA 2013)

Pages from

99

Pages to

102

Pages count

4

BibTex

@inproceedings{BUT100610,
  author="Michal {Karas} and Mária {Režňáková}",
  title="The Impact of Methodology on the Effectiveness of Bankruptcy Modeling",
  booktitle="Recent Advances in Economics and Business Administration: Proceedings of the 2013 International Conference on Economics and Business Adminstration (EBA 2013)",
  year="2013",
  pages="99--102",
  isbn="978-1-61804-198-2"
}