Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data

Bankruptcy prediction is a vast area of finance and accounting whose importance lies in the relevance for creditors and investors in evaluating the likelihood of getting into bankrupt. As companies become complex, they develop sophisticated schemes to hide their real situation. In turn, making an es...

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Main Authors: A. Gaspar-Cunha, G. Recio, L. Costa, C. Estébanez
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/314728
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author A. Gaspar-Cunha
G. Recio
L. Costa
C. Estébanez
author_facet A. Gaspar-Cunha
G. Recio
L. Costa
C. Estébanez
author_sort A. Gaspar-Cunha
collection DOAJ
description Bankruptcy prediction is a vast area of finance and accounting whose importance lies in the relevance for creditors and investors in evaluating the likelihood of getting into bankrupt. As companies become complex, they develop sophisticated schemes to hide their real situation. In turn, making an estimation of the credit risks associated with counterparts or predicting bankruptcy becomes harder. Evolutionary algorithms have shown to be an excellent tool to deal with complex problems in finances and economics where a large number of irrelevant features are involved. This paper provides a methodology for feature selection in classification of bankruptcy data sets using an evolutionary multiobjective approach that simultaneously minimise the number of features and maximise the classifier quality measure (e.g., accuracy). The proposed methodology makes use of self-adaptation by applying the feature selection algorithm while simultaneously optimising the parameters of the classifier used. The methodology was applied to four different sets of data. The obtained results showed the utility of using the self-adaptation of the classifier.
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series The Scientific World Journal
spelling doaj-art-a788a095256f46828ad458bdd2f24c532025-08-20T02:20:57ZengWileyThe Scientific World Journal2356-61401537-744X2014-01-01201410.1155/2014/314728314728Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction DataA. Gaspar-Cunha0G. Recio1L. Costa2C. Estébanez3Institute of Polymers and Composites-I3N, University of Minho, Guimarães, PortugalDepartment of Computer Science, Universidad Carlos III de Madrid, Leganes, Madrid, SpainDepartment of Production and Systems Engineering, University of Minho, Braga, PortugalDepartment of Computer Science, Universidad Carlos III de Madrid, Leganes, Madrid, SpainBankruptcy prediction is a vast area of finance and accounting whose importance lies in the relevance for creditors and investors in evaluating the likelihood of getting into bankrupt. As companies become complex, they develop sophisticated schemes to hide their real situation. In turn, making an estimation of the credit risks associated with counterparts or predicting bankruptcy becomes harder. Evolutionary algorithms have shown to be an excellent tool to deal with complex problems in finances and economics where a large number of irrelevant features are involved. This paper provides a methodology for feature selection in classification of bankruptcy data sets using an evolutionary multiobjective approach that simultaneously minimise the number of features and maximise the classifier quality measure (e.g., accuracy). The proposed methodology makes use of self-adaptation by applying the feature selection algorithm while simultaneously optimising the parameters of the classifier used. The methodology was applied to four different sets of data. The obtained results showed the utility of using the self-adaptation of the classifier.http://dx.doi.org/10.1155/2014/314728
spellingShingle A. Gaspar-Cunha
G. Recio
L. Costa
C. Estébanez
Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
The Scientific World Journal
title Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
title_full Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
title_fullStr Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
title_full_unstemmed Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
title_short Self-Adaptive MOEA Feature Selection for Classification of Bankruptcy Prediction Data
title_sort self adaptive moea feature selection for classification of bankruptcy prediction data
url http://dx.doi.org/10.1155/2014/314728
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AT lcosta selfadaptivemoeafeatureselectionforclassificationofbankruptcypredictiondata
AT cestebanez selfadaptivemoeafeatureselectionforclassificationofbankruptcypredictiondata