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A comparison of supervised and unsupervised neural networks in predicting bankruptcy of Korean firms

Expert Systems with ApplicationsPublished 11 February 2005
Ki Bong Lee, David Booth, Pervaiz Alam
Citations216
SJR quartileQ1
SJR score1.85
SNIP2.55

TL;DR

The findings suggest that the BP network is a better choice when a target vector is available than the Kohonen self-organizing feature map in the area of bankruptcy prediction.

Abstract

In this study, two learning paradigms of neural networks, supervised versus unsupervised, are compared using their representative types. The back-propagation (BP) network and the Kohonen self-organizing feature map, selected as the representative type for supervised and unsupervised neural networks, respectively, are compared in terms of prediction accuracy in the area of bankruptcy prediction. Discriminant analysis and logistic regression are also performed to provide performance benchmarks. The findings suggest that the BP network is a better choice when a target vector is available.

Keywords

Computer ScienceBusiness, Management and Accounting