scholarly journals Predicting Financial Distress of Slovak Enterprises: Comparison of Selected Traditional and Learning Algorithms Methods

2020 ◽  
Vol 12 (10) ◽  
pp. 3954 ◽  
Author(s):  
Elena Gregova ◽  
Katarina Valaskova ◽  
Peter Adamko ◽  
Milos Tumpach ◽  
Jaroslav Jaros

Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a reputable prediction model for industrial enterprises, which has not been developed yet in the country, which is one of the world’s largest car producers.

Author(s):  
Byunghyun Kang ◽  
Cheol Choi ◽  
Daeun Sung ◽  
Seongho Yoon ◽  
Byoung-Ho Choi

In this study, friction tests are performed, via a custom-built friction tester, on specimens of natural rubber used in automotive suspension bushings. By analyzing the problematic suspension bushings, the eleven candidate factors that influence squeak noise are selected: surface lubrication, hardness, vulcanization condition, surface texture, additive content, sample thickness, thermal aging, temperature, surface moisture, friction speed, and normal force. Through friction tests, the changes are investigated in frictional force and squeak noise occurrence according to various levels of the influencing factors. The degree of correlation between frictional force and squeak noise occurrence with the factors is determined through statistical tests, and the relationship between frictional force and squeak noise occurrence based on the test results is discussed. Squeak noise prediction models are constructed by considering the interactions among the influencing factors through both multiple logistic regression and neural network analysis. The accuracies of the two prediction models are evaluated by comparing predicted and measured results. The accuracies of the multiple logistic regression and neural network models in predicting the occurrence of squeak noise are 88.2% and 87.2%, respectively.


2003 ◽  
Vol 3 ◽  
pp. 455-476 ◽  
Author(s):  
Wun Wong ◽  
Peter J. Fos ◽  
Frederick E. Petry

The assessment of medical outcomes is important in the effort to contain costs, streamline patient management, and codify medical practices. As such, it is necessary to develop predictive models that will make accurate predictions of these outcomes. The neural network methodology has often been shown to perform as well, if not better, than the logistic regression methodology in terms of sample predictive performance. However, the logistic regression method is capable of providing an explanation regarding the relationship(s) between variables. This explanation is often crucial to understanding the clinical underpinnings of the disease process. Given the respective strengths of the methodologies in question, the combined use of a statistical (i.e., logistic regression) and machine learning (i.e., neural network) technology in the classification of medical outcomes is warranted under appropriate conditions. The study discusses these conditions and describes an approach for combining the strengths of the models.


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