Predicting financial distress in TSX-listed firms using machine learning algorithms

The results suggest that ANN provides a robust and reliable method for financial distress prediction. The use of RFECV and bootstrapped CART contributes to the model's stability, underscoring the potential of ML tools in financial health monitoring. These insights carry valuable implications for auditors, regulators, and company management in enhancing practices around financial oversight and fraud detection.

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Publication Details

Journal
Frontiers in Artificial Intelligence
Published
2024-11-27
DOI
https://doi.org/10.3389/frai.2024.1466321
Citations
8
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
7.57
Controls
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article

Predicting financial distress in TSX-listed firms using machine learning algorithms

Mark Lokanan, Sana Ramzan
8 citations
Frontiers in Artificial Intelligence
Financial Distress and Bankruptcy Prediction
7.57
article

Predicting financial distress in TSX-listed firms using machine learning algorithms

Mark Lokanan, Sana Ramzan
article en
8 citations

Abstract

The results suggest that ANN provides a robust and reliable method for financial distress prediction. The use of RFECV and bootstrapped CART contributes to the model's stability, underscoring the potential of ML tools in financial health monitoring. These insights carry valuable implications for auditors, regulators, and company management in enhancing practices around financial oversight and fraud detection.

Frontiers in Artificial IntelligenceVol. 7
University Canada West (CA), Royal Roads University (CA)
Openalex Percentile: Top 3%
Financial Distress and Bankruptcy Prediction
7.57
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