• DocumentCode
    3276222
  • Title

    The Emerging Financial Pre-warning Systems

  • Author

    Lee, Mushang ; Shih, Ching-Hui ; Wu, Tsui Chih

  • Author_Institution
    Dept. of Accounting, Chinese Culture Univ., Taipei, Taiwan
  • fYear
    2012
  • fDate
    4-6 July 2012
  • Firstpage
    956
  • Lastpage
    961
  • Abstract
    The exact prediction of financial crises is an essential research task for decision makers. In recent years, data mining techniques have been used to tackle the related problems and perform a satisfactory job in various domains. However, in the information age, utilizing straightforward data mining techniques to predict financial crises has many shortcomings and limitations. Thus, this investigation utilized the random forest (RF) technique as a pre-processing procedure to determine the most representative features. Then, the selected features were fed into rough set theory to yield interpretable information for decision makers, who can use it to make suitable judgments in a turbulent economic climate. The proposed model is a promising alternative for predicting financial crisis, and it can assist in regard to both taxation and financial institutions.
  • Keywords
    data mining; decision making; economic cycles; random processes; rough set theory; stock markets; taxation; turbulence; RF technique; data mining techniques; decision makers; emerging financial prewarning systems; exact prediction; financial crises; financial crisis prediction; financial institutions; information age; interpretable information; preprocessing procedure; random forest technique; representative features; rough set theory; satisfactory job; suitable judgments; taxation; turbulent economic climate; Accuracy; Approximation methods; Economics; Feature extraction; Mathematical model; Radio frequency; Vegetation; Decision making; Financial crisis; Random forest; Rough set theory;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Innovative Mobile and Internet Services in Ubiquitous Computing (IMIS), 2012 Sixth International Conference on
  • Conference_Location
    Palermo
  • Print_ISBN
    978-1-4673-1328-5
  • Type

    conf

  • DOI
    10.1109/IMIS.2012.156
  • Filename
    6296985