LGFeb 12, 2015

A Predictive System for detection of Bankruptcy using Machine Learning techniques

arXiv:1502.03601v12.131 citations
Originality Synthesis-oriented
AI Analysis

This work addresses bankruptcy prediction for financial stakeholders, but it appears incremental as it applies existing soft computing techniques without claiming major innovations.

The study developed a bankruptcy prediction system using machine learning to categorize companies by risk level, aiming to serve as a decision support tool for early detection to prevent financial losses.

Bankruptcy is a legal procedure that claims a person or organization as a debtor. It is essential to ascertain the risk of bankruptcy at initial stages to prevent financial losses. In this perspective, different soft computing techniques can be employed to ascertain bankruptcy. This study proposes a bankruptcy prediction system to categorize the companies based on extent of risk. The prediction system acts as a decision support tool for detection of bankruptcy Keywords: Bankruptcy, soft computing, decision support tool

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