A hybrid clustering and boosting tree feature selection (CBTFS) method for credit risk assessment with high-dimensionality

To solve the high-dimensional issue in credit risk assessment, a hybrid clustering and boosting tree feature selection method is proposed. In the hybrid methodology, an improved minimum spanning tree model is first used to remove redundant and irrelevant features. Then three embedded feature selection approaches (i.e., Random Forest, XGBoost, and AdaBoost) are used to further enhance the feature-ranking efficiency and obtain better prediction performance by applying the optimal features. For verification purpose, two real-world credit datasets are used to demonstrate the effectiveness of the proposed hybrid clustering and boosting tree feature selection (CBTFS) methodology. Experimental results demonstrated that the proposed method is superior to others classic feature selection methods. This indicates that the proposed hybrid clustering and boosting tree feature selection method can be used as a promising tool for solving high-dimensional issue in credit risk assessment. First published online 12 February 2025

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Publication Details

Journal
Technological and Economic Development of Economy
Published
2025-02-12
DOI
https://doi.org/10.3846/tede.2025.23060
Citations
2
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
7.82

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article

A hybrid clustering and boosting tree feature selection (CBTFS) method for credit risk assessment with high-dimensionality

Lean Yu, Jianxin Zhu, Xiaoming Zhang, Wu Xiong
2 citations
Technological and Economic Development of Economy
Financial Distress and Bankruptcy Prediction
7.82
article

A hybrid clustering and boosting tree feature selection (CBTFS) method for credit risk assessment with high-dimensionality

Lean Yu, Jianxin Zhu, Xiaoming Zhang, Wu Xiong
article en
2 citations

Abstract

To solve the high-dimensional issue in credit risk assessment, a hybrid clustering and boosting tree feature selection method is proposed. In the hybrid methodology, an improved minimum spanning tree model is first used to remove redundant and irrelevant features. Then three embedded feature selection approaches (i.e., Random Forest, XGBoost, and AdaBoost) are used to further enhance the feature-ranking efficiency and obtain better prediction performance by applying the optimal features. For verification purpose, two real-world credit datasets are used to demonstrate the effectiveness of the proposed hybrid clustering and boosting tree feature selection (CBTFS) methodology. Experimental results demonstrated that the proposed method is superior to others classic feature selection methods. This indicates that the proposed hybrid clustering and boosting tree feature selection method can be used as a promising tool for solving high-dimensional issue in credit risk assessment. First published online 12 February 2025

Technological and Economic Development of EconomyVol. 31(6)
Harbin Engineering University (CN), Sichuan University (CN), Jiangxi University of Finance and Economics (CN), Ministry of Industry and Information Technology (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 4%
Financial Distress and Bankruptcy Prediction
7.82
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