Voting Features based Classifier with Feature Construction and its Application to Predicting Financial Distress
Voting features based classifiers, shortly VFC, have been shown to perform well on most real-world data sets. They are robust to irrelevant features and missing feature values. In this paper, we introduce an extension to VFC, called voting features based classifier with feature construction, VFCC for short, and show its application to the problem of predicting if a bank will encounter financial distress, by analyzing current financial statements. The previously developed VFC learn a set of rules that contain a single condition based on a single feature in their antecedent. The VFCC algorithm proposed in this work, on the other hand, constructs rules whose antecedents may contain conjuncts based on several features. Experimental results on recent financial ratios of banks in Turkey show that the VFCC algorithm achieves better accuracy than other well-known rule learning classification algorithms.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fukuda, Shin-ichi & Kasuya, Munehisa & Akashi, Kentaro, 2009.
"Impaired bank health and default risk,"
Pacific-Basin Finance Journal,
Elsevier, vol. 17(2), pages 145-162, April.
- Shin-ichi Fukuda & Munehisa Kasuya & Kentaro Akashi, 2008. "Impaired Bank Health and Default Risk," CIRJE F-Series CIRJE-F-564, CIRJE, Faculty of Economics, University of Tokyo.
- Shin-ichi Fukuda & Munehisa Kasuya & Kentaro Akashi, 2005. "Impaired Bank Health and Default Risk," Bank of Japan Working Paper Series 05-E-13, Bank of Japan.
- G. Lanine & R. Vander Vennet, 2005. "Failure prediction in the Russian bank sector with logit and trait recognition models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/329, Ghent University, Faculty of Economics and Business Administration.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:21595. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.