Abstract

A financial difficulty is the early stages before the bankruptcy. Bankruptcies caused by the financial distress can be seen from the financial statements of the company. The ability to predict financial distress became an important research topic because it can provide early warning for the company. In addition, predicting financial distress is also beneficial for investors and creditors. This research will be made the prediction model of financial distress at industrial companies in Indonesia by comparing the performance of Linear Discriminant Analysis (LDA) and Support Vector Machine (SVM) combined with variable selection technique. The result of this research is prediction model based on hybrid Stepwise-SVM obtains better balance among fitting ability, generalization ability and model stability than the other models.

Original languageEnglish
Article number012089
JournalJournal of Physics: Conference Series
Volume979
Issue number1
DOIs
Publication statusPublished - 13 Mar 2018
Event2nd International Conference on Science, ICOS 2017 - Makassar, Indonesia
Duration: 2 Nov 20173 Nov 2017

Fingerprint

Dive into the research topics of 'Financial Distress Prediction using Linear Discriminant Analysis and Support Vector Machine'. Together they form a unique fingerprint.

Cite this