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http://dx.doi.org/10.9708/jksci.2014.19.10.125

A Development of Hotel Bankruptcy Prediction Model on Artificial Neural Network  

Choi, Sung-Ju (Dept. of Information Management, Graduate School of Wonkwang University)
Lee, Sang-Won (Div. of Information and Electronic Commerce, Wonkwang University)
Publication Information
Journal of the Korea Society of Computer and Information / v.19, no.10, 2014 , pp. 125-133 More about this Journal
Abstract
This paper develops a bankruptcy prediction model on an Artificial Neural Network for hotel management. A bankruptcy prediction model has a specific feature to predict a bankruptcy of the whole hotel business after evaluate bankruptcy possibility on the basis of business performance data of each branch. here are many traditional statistical models for bankruptcy prediction such as Multivariate Discriminant Analysis or Logit Analysis. However, we chose Artificial Neural Network because the method has accuracy rates of prediction better than those of other methods. We first selected 100 good enterprises and 100 bankrupt enterprises as experimental data and set up a bankruptcy prediction model by use of a tool for Artificial Neural Network, NeuroShell. The model and its experiments, which demonstrated high efficiency, can certainly provide great help in decision making in the field of hotel management and in deciding on the bankruptcy or financial solidity of each branch of serviced residence hotel.
Keywords
Artificial Neural Network; Bankcupty Prediction; Hotel Management;
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Times Cited By KSCI : 2  (Citation Analysis)
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