CSA-Net: a cost-sensitive adaptive hybrid framework for imbalanced financial distress prediction

Financial distress prediction is a severely imbalanced tabular-learning problem in which distressed firms are rare and false-negative errors can carry disproportionate economic consequences. We propose CSA-Net, a cost-sensitive adaptive hybrid framework that treats LightGBM as a strong tabular prior and learns a lightweight neural residual whose sample-specific amplitude limits unnecessary deviation from the tree predictor. An error-aware objective places additional weight on distressed observations that the prior scores poorly. Eleven statistical, ensemble, deep-tabular, and neural models were evaluated across five Polish bankruptcy horizons and an independent Taiwanese benchmark using five-fold outer evaluation, three-fold inner model selection, matched 12-candidate tuning budgets, fold-local preprocessing, and corrected paired inference. AUC-PR was prespecified as the primary endpoint. CSA-Net ranked first by mean AUC-PR in five of six settings. Relative to standalone LightGBM, corrected differences were significant at four of five Polish horizons, while the Taiwanese difference was positive but not statistically significant; the remaining Polish horizon was effectively tied. Ablation showed that generic residual stacking contributed little, whereas adaptive and cost-sensitive correction accounted for most of the incremental gain. Reliability analyses further showed competitive calibration, behaviorally validated post-hoc attributions, dataset-dependent robustness, and moderate computational overhead. These findings support targeted neural augmentation of strong tabular boosting rather than universal model superiority.

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Publication Details

Journal
Scientific Reports
Published
2026-09-05
DOI
https://doi.org/10.1038/s41598-026-68005-8
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
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article

CSA-Net: a cost-sensitive adaptive hybrid framework for imbalanced financial distress prediction

ZONGJUN LAN, Zhang Jie, Yujiao Wang
Scientific Reports
Financial Distress and Bankruptcy Prediction
article

CSA-Net: a cost-sensitive adaptive hybrid framework for imbalanced financial distress prediction

ZONGJUN LAN, Zhang Jie, Yujiao Wang
article en

Abstract

Financial distress prediction is a severely imbalanced tabular-learning problem in which distressed firms are rare and false-negative errors can carry disproportionate economic consequences. We propose CSA-Net, a cost-sensitive adaptive hybrid framework that treats LightGBM as a strong tabular prior and learns a lightweight neural residual whose sample-specific amplitude limits unnecessary deviation from the tree predictor. An error-aware objective places additional weight on distressed observations that the prior scores poorly. Eleven statistical, ensemble, deep-tabular, and neural models were evaluated across five Polish bankruptcy horizons and an independent Taiwanese benchmark using five-fold outer evaluation, three-fold inner model selection, matched 12-candidate tuning budgets, fold-local preprocessing, and corrected paired inference. AUC-PR was prespecified as the primary endpoint. CSA-Net ranked first by mean AUC-PR in five of six settings. Relative to standalone LightGBM, corrected differences were significant at four of five Polish horizons, while the Taiwanese difference was positive but not statistically significant; the remaining Polish horizon was effectively tied. Ablation showed that generic residual stacking contributed little, whereas adaptive and cost-sensitive correction accounted for most of the incremental gain. Reliability analyses further showed competitive calibration, behaviorally validated post-hoc attributions, dataset-dependent robustness, and moderate computational overhead. These findings support targeted neural augmentation of strong tabular boosting rather than universal model superiority.

Scientific Reports
INTI International University (MY), Guangzhou Vocational College of Science and Technology (CN), Puyang Vocational and Technical College (CN)
Openalex Percentile: Top 4%
Financial Distress and Bankruptcy Prediction
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