Corporate Financial Distress Predicting Based on Rough Sets and PCA-RBFN Model

This paper is to propose an integrated rough sets and PCA-RBFN model for corporate financial distress prediction problem in an attempt to suggest a new model with better explanatory power and stability. To serve this purpose, the RS and the PCA method is employed to simplify the indicators, and the RBFN is used as a predicting tool for corporate financial situation. In addition, to evaluate the performance of the proposed approach, we compare its results with those of ARIMA, BPN and conventional RBFN. The experimental results show that the proposed hybrid model outperforms the other methods.