Volume 4, Issue 3, September 2019, Page: 63-69
A Hybrid Ensemble Model for Corporate Bankruptcy Prediction Based on Feature Engineering Method
Xiaoxia Wu, Department of Financial Accounting, Zhejiang Institute of Economics and Trade, Hangzhou, China
Dongqi Yang, School of Information, Zhejiang University of Finance and Economics, Hangzhou, China
Wenyu Zhang, School of Information, Zhejiang University of Finance and Economics, Hangzhou, China
Shuai Zhang, School of Information, Zhejiang University of Finance and Economics, Hangzhou, China
Received: Aug. 5, 2019;       Published: Sep. 27, 2019
DOI: 10.11648/j.ijics.20190403.12      View  76      Downloads  19
Abstract
The bankruptcy of manufacturing corporates is an important factor affecting economic stability. Corporate bankruptcy has become a hot research topic mainly through financial data analysis and prediction. With the development of data science and artificial intelligence, machine learning technology helps researchers improve the accuracy and robustness of classification models. Ensemble learning, with its strong predictive power and robustness, plays an important role in machine learning and binary classification prediction. In this study, we proposed a bankruptcy classification model combining feature engineering method and ensemble learning method, Synthetic Minority Oversampling Technique (SMOTE) imbalanced data learning algorithm is applied to generate balanced dataset, multi-interval discretization filter is applied to enhance the interpretability of the features and ensemble learning method is applied to get an accurate and objective prediction. To demonstrate the validity and performance of the proposed model, we conducted comparative experiments with ten other baseline classifiers, proving that SMOTE imbalanced learning algorithm and feature engineering method with multi-interval discretization was effective. The comparative experiment results show that the ensemble learning method has a good effect on improving the performance of the proposed model. The final results show that the proposed model has achieved better performance and robustness than other baseline classifiers in terms of classification accuracy, F-measure and Area under Curve (AUC).
Keywords
Data Mining, Ensemble Learning, Corporate Bankruptcy, Prediction
To cite this article
Xiaoxia Wu, Dongqi Yang, Wenyu Zhang, Shuai Zhang, A Hybrid Ensemble Model for Corporate Bankruptcy Prediction Based on Feature Engineering Method, International Journal of Information and Communication Sciences. Vol. 4, No. 3, 2019, pp. 63-69. doi: 10.11648/j.ijics.20190403.12
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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