Business Failure Prediction with Support Vector Machines and Neural Networks: a Comparative Study
نویسندگان
چکیده
Bankruptcy prediction has attracted a lot of research interests in previous literature, and recent studies have shown that artificial neural networks (ANN) method achieved better performance than traditional statistical ones. ANN approaches have, however, suffered from difficulties with generalization, producing models that can overfit the data. This paper employs a relatively new machine learning technique, support vector machines (SVM), to the bankruptcy prediction problem in an attempt to provide a model with better explanatory power. To evaluate the prediction accuracy of SVM, we compare its performance with three-layer fully connected backpropagation neural networks (BNN). The experiment results show that SVM outperforms the BNN.
منابع مشابه
A Comparative Study of Extreme Learning Machines and Support Vector Machines in Prediction of Sediment Transport in Open Channels
The limiting velocity in open channels to prevent long-term sedimentation is predicted in this paper using a powerful soft computing technique known as Extreme Learning Machines (ELM). The ELM is a single Layer Feed-forward Neural Network (SLFNN) with a high level of training speed. The dimensionless parameter of limiting velocity which is known as the densimetric Froude number (Fr) is predicte...
متن کاملA Comparative Approximate Economic Behavior Analysis Of Support Vector Machines And Neural Networks Models
متن کامل
Application of Artificial Neural Networks and Support Vector Machines for carbonate pores size estimation from 3D seismic data
This paper proposes a method for the prediction of pore size values in hydrocarbon reservoirs using 3D seismic data. To this end, an actual carbonate oil field in the south-western part ofIranwas selected. Taking real geological conditions into account, different models of reservoir were constructed for a range of viable pore size values. Seismic surveying was performed next on these models. F...
متن کاملComparing the Bank Failure Prediction Performance of Neural Networks and Support Vector Machines: the Turkish Case
Experience from the banking crises during the past two decades suggest that advanced prediction models are needed for helping prevent bank failures. This paper compares the ability of artificial neural networks and support vector machines in predicting bank failures. Although artificial neural networks have widely been applied complex problems in business, the literature utilizing support vecto...
متن کاملPrediction of true critical temperature and pressure of binary hydrocarbon mixtures: A Comparison between the artificial neural networks and the support vector machine
Two main objectives have been considered in this paper: providing a good model to predict the critical temperature and pressure of binary hydrocarbon mixtures, and comparing the efficiency of the artificial neural network algorithms and the support vector regression as two commonly used soft computing methods. In order to have a fair comparison and to achieve the highest efficiency, a comprehen...
متن کامل