Bankruptcy Prediction Using Machine Learning Techniques

In this study, we apply several advanced machine learning techniques including extreme gradient boosting (XGBoost), support vector machine (SVM), and a deep neural network to predict bankruptcy using easily obtainable financial data of 3728 Belgian Small and Medium Enterprises (SME’s) during the period 2002–2012. Using the above-mentioned machine learning techniques, we predict bankruptcies with a global accuracy of 82–83% using only three...