Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)

Accuracy of Financial Distress Model Prediction: The Implementation of Artificial Neural Network, Logistic Regression, and Discriminant Analysis

Authors
Triasesiarta Nur, Rosinta Ria Panggabean
Corresponding Author
Triasesiarta Nur
Available Online 4 May 2020.
DOI
10.2991/assehr.k.200529.084How to use a DOI?
Keywords
Financial Distress Model, Artificial Neural Network, Logistic Regression, Discriminant Analysis
Abstract

The ability to predict financial failure forms an essential topic in financial research. The various models developed to predict the occurrence of Financial Distress and serve as an early warning system for the company’s stakeholders before bankruptcy occurs. Enhanced accuracy of the predictions improves the ability to mitigate its adverse effect. This study aims to build Financial Distress models using Artificial Neural Network Model, Logistic Regression, and Discriminant Analysis, based on samples taken from manufacture sectors in the Indonesia Stock Exchange in the period 2015-2018. Accuracy of the three techniques in predicting Financial Distress are compared and results indicate Artificial Neural Network Model gave a better performance than the other techniques. It is crucial to consider the choice of predictor variables that determined the success of the financial distress model.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
4 May 2020
ISBN
978-94-6252-961-8
ISSN
2352-5398
DOI
10.2991/assehr.k.200529.084How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Triasesiarta Nur
AU  - Rosinta Ria Panggabean
PY  - 2020
DA  - 2020/05/04
TI  - Accuracy of Financial Distress Model Prediction: The Implementation of Artificial Neural Network, Logistic Regression, and Discriminant Analysis
BT  - Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
PB  - Atlantis Press
SP  - 402
EP  - 406
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200529.084
DO  - 10.2991/assehr.k.200529.084
ID  - Nur2020
ER  -