scholarly journals Financial Distress Prediction using Linear Discriminant Analysis and Support Vector Machine

2018 ◽  
Vol 979 ◽  
pp. 012089 ◽  
Author(s):  
Noviyanti Santoso ◽  
Wahyu Wibowo
2016 ◽  
Vol 25 (3) ◽  
pp. 417-429
Author(s):  
Chong Wu ◽  
Lu Wang ◽  
Zhe Shi

AbstractFor the financial distress prediction model based on support vector machine, there are no theories concerning how to choose a proper kernel function in a data-dependent way. This paper proposes a method of modified kernel function that can availably enhance classification accuracy. We apply an information-geometric method to modifying a kernel that is based on the structure of the Riemannian geometry induced in the input space by the kernel. A conformal transformation of a kernel from input space to higher-dimensional feature space enlarges volume elements locally near support vectors that are situated around the classification boundary and reduce the number of support vectors. This paper takes the Gaussian radial basis function as the internal kernel. Additionally, this paper combines the above method with the theories of standard regularization and non-dimensionalization to construct the new model. In the empirical analysis section, the paper adopts the financial data of Chinese listed companies. It uses five groups of experiments with different parameters to compare the classification accuracy. We can make the conclusion that the model of modified kernel function can effectively reduce the number of support vectors, and improve the classification accuracy.


2011 ◽  
Vol 28 (01) ◽  
pp. 95-109 ◽  
Author(s):  
YU CAO ◽  
GUANGYU WAN ◽  
FUQIANG WANG

Effectively predicting corporate financial distress is an important and challenging issue for companies. The research aims at predicting financial distress using the integrated model of rough set theory (RST) and support vector machine (SVM), in order to find a better early warning method and enhance the prediction accuracy. After several comparative experiments with the dataset of Chinese listed companies, rough set theory is proved to be an effective approach for reducing redundant information. Our results indicate that the SVM performs better than the BPNN when they are used for corporate financial distress prediction.


2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Heping Li ◽  
Yu Ren ◽  
Fan Yu ◽  
Dongliang Song ◽  
Lizhe Zhu ◽  
...  

To facilitate the enhanced reliability of Raman-based tumor detection and analytical methodologies, an ex vivo Raman spectral investigation was conducted to identify distinct compositional information of healthy (H), ductal carcinoma in situ (DCIS), and invasive ductal carcinoma (IDC). Then, principal component analysis-linear discriminant analysis (PCA-LDA) and principal component analysis-support vector machine (PCA-SVM) models were constructed for distinguishing spectral features among different tissue groups. Spectral analysis highlighted differences in levels of unsaturated and saturated lipids, carotenoids, protein, and nucleic acid between healthy and cancerous tissue and variations in the levels of nucleic acid, protein, and phenylalanine between DCIS and IDC. Both classification models were principal component analysis-linear discriminant analysis to be extremely efficient on discriminating tissue pathological types with 99% accuracy for PCA-LDA and 100%, 100%, and 96.7% for PCA-SVM analysis based on linear kernel, polynomial kernel, and radial basis function (RBF), respectively, while PCA-SVM algorithm greatly simplified the complexity of calculation without sacrificing performance. The present study demonstrates that Raman spectroscopy combined with multivariate analysis technology has considerable potential for improving the efficiency and performance of breast cancer diagnosis.


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