An Ensemble Stacking Algorithm to Improve Model Accuracy in Bankruptcy Prediction

Authors

  • Much Aziz Muslim Faculty of Technology Management and Business, University of Tun Hussein Onn Malaysia, Malaysia https://orcid.org/0000-0001-7405-9898
  • Yosza Dasril Faculty of Technology Management and Business, University of Tun Hussein Onn Malaysia, Malaysia
  • Haseeb Javed epartment of Science Engineering, Sungkyuwan University, South Korea
  • Alamsyah Department of Computer Science, State University of Semarang, Indonesia
  • Jumanto Department of Computer Science, State University of Semarang, Indonesia https://orcid.org/0000-0002-9225-1098
  • Wiena Faqih Abror Department of Computer Science, State University of Semarang, Indonesia https://orcid.org/0009-0003-0931-6597
  • Dwika Ananda Agustina Pertiwi Department of Computer Science, State University of Semarang, Indonesia https://orcid.org/0000-0001-6460-7942
  • Tanzilal Mustaqim Department of Computer Science, State University of Semarang, Indonesia

DOI:

https://doi.org/10.47852/bonviewJDSIS3202655

Keywords:

bankruptcy prediction, taiwanese bankruptcy, genetic algorithm, stacking ensemble, SMOTE

Abstract

Bankruptcy analysis is needed to anticipate bankruptcy. Errors in predicting bankruptcy often cause bankruptcy. Machine learning with high accuracy to analyze reversal must continuously improve its accuracy. Many machine learning models have been applied to predict bankruptcy. However, model improvisation is still needed to improve prediction accuracy. We propose a combination model to improve the accuracy of bankruptcy prediction based on a genetic algorithm-support vector machine (GA-SVM) and stacking ensemble method. This study uses the Taiwanese Bankruptcy dataset from the Taiwan Economic Journal. Then we implement a synthetic minority over-sampling technique for handling imbalanced datasets. We select the best feature using GA-SVM, adopt a new strategy by stacking the classifier, and use extreme gradient boosting as a meta-learner. The results show superior accuracy obtained by the stacking model-based GA-SVM with an accuracy of 99.58%. The accuracy obtained is higher than just applying a single classifier. Thus, this study shows that the proposed method can predict bankruptcy with superior accuracy.

 

Received: 12 January 2023 | Revised: 8 March 2023 | Accepted: 14 March 2023

 

Conflicts of Interest

Much Aziz Muslim is an editorial board member of Journal of Data Science and Intelligent Systems and was not involved in the editorial review or the decision to publish this article. The authors declare that they have no conflicts of interest to this work.

 

Data Availability Statement

Data sharing is not applicable to this article as no new data were created or analyzed in this study.

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Published

2023-03-16

How to Cite

Muslim, M. A., Yosza Dasril, Haseeb Javed, Alamsyah, Jumanto, Wiena Faqih Abror, Dwika Ananda Agustina Pertiwi, & Tanzilal Mustaqim. (2023). An Ensemble Stacking Algorithm to Improve Model Accuracy in Bankruptcy Prediction. Journal of Data Science and Intelligent Systems. https://doi.org/10.47852/bonviewJDSIS3202655

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Section

Research Articles