The application of Genetic Algorithm and Data Envelopment Analysis to bankruptcy prediction: A comparative study
Journal Title: Journal of Science and today’s world - Year 2014, Vol 3, Issue 1
Abstract
The high social costs associated with bankruptcy have spurred searches for better theoretical understanding and prediction capability. Using an additive super-efficiency data envelopment analysis (DEA) model and genetic algorithm (GA), this paper develops a new assessment index based on two frontiers for predicting corporate failure and success. The proposed approach is applied 70 bankrupt and 70 healthy matching firms in Tehran Stock Exchange. This sample represents the largest firms that went bankrupt over the period 2004–2010 and represents a full spectrum of industries. Our findings demonstrate that the DEA and GA models is relatively weak in predicting corporate failures compared to healthy firm predictions, and the assessment index improves this weakness by giving the decision maker various options to achieve different precision levels of bankrupt, non-bankrupt, and total predictions.
Authors and Affiliations
Ahmad Abdollahi
Keywords
Related Articles
- EP ID EP29414
- DOI -
- Views 391
- Downloads 4
Studying the Effect of Blue Ocean Strategy Factors on Acquiring Competitive Advantage (Case Study: Pharmaceutical Companies of Lorestan and Markazi Provinces)
This research aimed to study the effect of blue ocean strategy factors on acquiring competitive advantage in pharmaceutical companies of Loresatan and Markazi provinces in Iran. To achieve this goal, a sample volume con...
Effects of a selected exercise programme on balance and performance improvement in patients with incomplete ankle sprain (Grades I, II).
Study aim: To evaluate the balance and performance improvement in patients with incomplete ankle sprain subjected to a specific exercise programme.Material and methods: A group of 12 male and female subjects in the acu...
Factors affecting law aversion among 15-34-year-old citizens in Sirjan
The present study was conducted with the aim of investigating factors affecting law aversion among 15-34-year-old citizens in Sirjan (Kerman, Iran). The variables under investigation were personal and social factors su...
The Effect of Ractopamine on Broiler Chickens Fed with Low Protein Diet Supplemented with Crystalline Amino Acids with a Focus on Carcase Composition and Carcase Parts Yields in Broilers
The effect of Ractopamine on broiler chickens fed with low protein diet supplemented with crystalline amino acids was studied with a focus on broiler performance, carcase chractristics and carcase composition.On the basi...
Causal relationship between Islamic work ethic and organizational self-esteem with Organizational Commitment and Job Performance with mediating role of Intrinsic Motivation in employees of Naft Company
The aim of this study was to test a model consisting of Causal relationship between Islamic work ethic and organizational self-esteem with Organizational Commitment and Job Performance with mediating role of Intrinsic...