MCELCCh-FDP: Financial distress prediction with classifier ensembles based on firm life cycle and Choquet integral

  • Authors:
  • Yu Cao

  • Affiliations:
  • Business School, Central South University, 932 Southern Lushan Road, Changsha 410083, China

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2012

Quantified Score

Hi-index 12.05

Visualization

Abstract

Financial distress prediction (FDP) has always been an important issue in the business and financial management. This research proposed a novel multiple classifier ensemble model based on firm life cycle and Choquet integral for FDP, named MCELCCh-FDP, as a new approach to tackle with financial distress. Empirical study based on Chinese listed companies' real data is conducted, and the results show that the proposed MCELCCh-FDP model has higher prediction accuracy than single classifiers. In order to verify the prediction capability of firm life cycle and Choquet integral in FDP model, comparative analysis is conducted. The experiment results indicate that the introduction of firm life cycle and Choquet integral in FDP can greatly enhance prediction accuracy.