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A Multicriteria Sorting Procedure for Financial Classification Problems: The Case of Business Failure Risk Assessment

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Intelligent Data Engineering and Automated Learning - IDEAL 2005 (IDEAL 2005)

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 3578))

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Abstract

This paper presents a new multicriteria sorting procedure in financial classification problems, based on the methodological framework of PROMETHEE method. The proposed procedure, called as PROMSORT, is applied to the business failure risk problem and compared to PROMETHEE TRI and ELECTRE TRI. The proposed methodology also identifies the differences in performances across risk groups, and assists in monitoring the firms’ financial performances. The results showed that the proposed procedure can be considered as an effective alternative to existing methods in financial classification problems.

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Araz, C., Ozkarahan, I. (2005). A Multicriteria Sorting Procedure for Financial Classification Problems: The Case of Business Failure Risk Assessment. In: Gallagher, M., Hogan, J.P., Maire, F. (eds) Intelligent Data Engineering and Automated Learning - IDEAL 2005. IDEAL 2005. Lecture Notes in Computer Science, vol 3578. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11508069_73

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  • DOI: https://doi.org/10.1007/11508069_73

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-26972-4

  • Online ISBN: 978-3-540-31693-0

  • eBook Packages: Computer ScienceComputer Science (R0)

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