Multiclass Corporate Failure Prediction by Adaboost.M1

Esteban Alfaro Cortés (), Matías Gámez Martínez () and Noelia García Rubio ()

International Advances in Economic Research, 2007, vol. 13, issue 3, pages 301-312

Abstract: Predicting corporate failure is an important management science problem. This is a typical classification question where the objective is to determine which indicators are involved in the failure or success of a corporation. Despite the complexity of the matter, a two-class problem has usually been considered to tackle this classification task. The objective of this paper is twofold. On the one hand, we apply the Adaboost.M1 algorithm to improve the accuracy of a classification tree in a multiclass corporate failure prediction problem using a set of European firms. On the other, we introduce novel discerning measures to rank independent variables in a generic classification task. Copyright International Atlantic Economic Society 2007

Keywords: Corporate failure prediction; Ensemble classifiers; Adaboost.M1; C10; G30; M00 (search for similar items in EconPapers)

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