Predicting corporate bankruptcy using a self‐organizing map: An empirical study to improve the forecasting horizon of a financial failure model

Predicting corporate bankruptcy using a self‐organizing map: An empirical study to improve the forecasting horizon of a financial failure model

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Article ID: iaor20115324
Volume: 51
Issue: 3
Start Page Number: 701
End Page Number: 711
Publication Date: Jun 2011
Journal: Decision Support Systems
Authors: ,
Keywords: simulation: applications, neural networks
Abstract:

We design a financial failure model with a Kohonen map. We compare this model to models designed with traditional methods. We examine model accuracy using data collected over several consecutive years. Error achieved with a Kohonen map is stable over time, unlike that of other methods.

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