• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.2
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• pp.1-13
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• 2002

In this paper, we compares the business failure prediction accuracy among Linear Programming Discriminant Analysis(LPDA) model, Multivariate Discriminant Analysis (MDA) model and logit analysis model. The Data for 417 companies analyzed were gathered from KIS-FAS Published by Korea Information Service in 1999. The result of comparison for four time horizons shows that LPDA Is advantageous in prediction accuracy over the other two models when over all tilt ratio and business failure accuracy are considered simultaneously.

• Proceedings of the Fisheries Business Administration Society of Korea Conference
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• 2007.12a
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• pp.167-184
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• 2007

The objectives of this paper are to identify the causes of the corporate distress and to develop a distress prediction model with the financial information in fishery industry. In this study, the corporate distress is defined as economic failure and technical insolvency. Economic failure occurs by reduction, shut-down, or change of the business and technical insolvency results from failure to pay the financial debt of companies. The 33 distressed firms from 1991 to 2003 were composed by 14 economic failure companies, 15 technical insolvency companies. 4 companies applied to the both cases. The analysis of distress prediction of fishery companies were accomplished according to the distress definition. The analysis was carried out as two steps. The first step was the univariate analysis, which was used for checking the prediction power of individual financial variable. The t-test is used to identify the differences in financial variables between the distressed group and the non-distressed group. The second step was to develop distress prediction model with logistic regression. The variables showed the significant difference in univariate analysis were selected as the prediction variables. The financial ratios, used in the logistic regression model, were selected by backward elimination method. To test stability of the distress prediction model, the whole sample was divided as three sub-samples, period 1(1990$\sim$1993), period 2(1994$\sim$1997), period 3(1998$\sim$2002). The final model built from whole sample appled each three sub-samples. The results of the logistic analysis were as follows. the growth, profitability, stability ratios showed the significant effect on the distress. the some different result was found in the sub-sample (economic failure and technical insolvency). The growth and the profitability were important to predict the economic failure. The profitability and the activity were important to predict technical insolvency. It means that profitability is the really important factor to the fishery companies.

• The Journal of Fisheries Business Administration
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• v.39 no.2
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• pp.61-79
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• 2008

The objectives of this paper are to identify the causes of the corporate distress and to develop a distress prediction model with the financial information in fishery industry. In this study, the corporate distress is defined as economic failure and technical insolvency. Economic failure occurs by reduction, shut - down, or change of the business and technical insolvency results from failure to pay the financial debt of companies. The 33 distressed firms from 1991 to 2003 were composed by 14 economic failure companies, 15 technical insolvency companies. 4 companies applied to the both cases. The analysis of distress prediction of fishery companies were accomplished according to the distress definition. The analysis was carried out as two steps. The first step was the univariate analysis, which was used for checking the prediction power of individual financial variable. The t - test is used to identify the differences in financial variables between the distressed group and the non - distressed group. The second step was to develop distress prediction model with logistic regression. The variables showed the significant difference in univariate analysis were selected as the prediction variables. The financial ratios, used in the logistic regression model, were selected by backward elimination method. To test stability of the distress prediction model, the whole sample was divided as three sub-samples, period 1(1990 - 1993), period 2(1994 - 1997), period 3(1998 - 2002). The final model built from whole sample appled each three sub - samples. The results of the logistic analysis were as follows. the growth, profitability, stability ratios showed the significant effect on the distress. the some different result was found in the sub - sample (economic failure and technical insolvency). The growth and the profitability were important to predict the economic failure. The profitability and the activity were important to predict technical insolvency. It means that profitability is the really important factor to the fishery companies.

• Journal of Information Processing Systems
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• v.15 no.6
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• pp.1489-1502
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• 2019

This work introduces a novel unweighted combination method (UCSS) for business failure perdition (BFP). With considering features of BFP in the age of big data, UCSS integrates the quantitative and qualitative analysis by utilizing soft set theory (SS). We adopt the conventional expert system (ES) as the basic qualitative classifier, the logistic regression model (LR) and the support vector machine (SVM) as basic quantitative classifiers. Unlike other traditional combination methods, we employ soft set theory to integrate the results of each basic classifier without weighting. In this way, UCSS inherits the advantages of ES, LR, SVM, and SS. To verify the performance of UCSS, it is applied to real datasets. We adopt ES, LR, SVM, combination models utilizing the equal weight approach (CMEW), neural network algorithm (CMNN), rough set and D-S evidence theory (CMRD), and the receiver operating characteristic curve (ROC) and SS (CFBSS) as benchmarks. The superior performance of UCSS has been verified by the empirical experiments.

• Journal of the Korean Data and Information Science Society
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• v.23 no.3
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• pp.569-577
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• 2012

The analysis and management of business failure has been recognized to be important in the area of financial management in the evaluation of firms' performance and the assessment of their viability. To this end, effective failure-prediction models are needed. This paper describes a new approach to prediction of business failure using the total margin algorithm which is a kind of support vector machine. It will be shown that the proposed method can evaluate the risk of failure better than existing methods through some real data.

• Journal of Information Processing Systems
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• v.12 no.1
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• pp.109-128
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• 2016

This paper presents a new combined forecasting method that is guided by the soft set theory (CFBSS) to predict business failures with different sample sizes. The proposed method combines both qualitative analysis and quantitative analysis to improve forecasting performance. We considered an expert system (ES), logistic regression (LR), and support vector machine (SVM) as forecasting components whose weights are determined by the receiver operating characteristic (ROC) curve. The proposed procedure was applied to real data sets from Chinese listed firms. For performance comparison, single ES, LR, and SVM methods, the combined forecasting method based on equal weights (CFBEWs), the combined forecasting method based on neural networks (CFBNNs), and the combined forecasting method based on rough sets and the D-S theory (CFBRSDS) were also included in the empirical experiment. CFBSS obtains the highest forecasting accuracy and the second-best forecasting stability. The empirical results demonstrate the superior forecasting performance of our method in terms of accuracy and stability.

• The Journal of Information Systems
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• v.16 no.3
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• pp.1-20
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• 2007

Most researches on the corporate credit rating are generally classified into the area of bankruptcy prediction and bond rating. The studies on bankruptcy prediction have focused on improving the performance in binary classification problem, since the criterion variable is categorical, bankrupt or non-bankrupt. The other studies on bond rating have predicted the credit ratings, which was already evaluated by bond rating experts. The financial institute, however, should perform effective loan evaluation and risk management by employing the corporate credit rating model, which is able to determine the credit of corporations. Therefore, this study presents a corporate credit rating method using business failure probability map(BFPM) and AHP(Analytic Hierarchy Process). The BFPM enables us to rate the credit of corporations according to business failure probability and data distribution or frequency on each credit rating level. Also, we developed AHP model for credit rating using non-financial information. For the purpose of completed credit rating model, we integrated the BFPM and the AHP model using both financial and non-financial information. Finally, the credit ratings of each firm are assigned by our proposed method. This method will be helpful for the loan evaluators of financial institutes to decide more objective and effective credit ratings.

• Journal of Applied Reliability
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• v.17 no.4
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• pp.305-315
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• 2017

Purpose: The purpose of this research is to propose procedure and methodology for developing failure rate databook which is suitable for Korean operation environment. Methods: To this end, we investigate failure databooks used in foreign countries and study the procedure and methodology for collecting failure data, organizing the data, estimating failure rate and summarizing results. Results: We develop the procedure of development of failure databook, the items for data collection, database schema of part details and part summary and contents of failure databook by considering the application environment in Korea. Conclusion: The results of our research could be utilized for the development of Korean failure rate databook and research of reliability prediction model and could ultimately contribute to improve the accuracy of reliability prediction.

• Korean Business Review
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• v.3
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• pp.123-153
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• 1990

• Korean small business review
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• v.42 no.3
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• pp.43-75
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• 2020

The main purpose of this study is to analyze research trend of 'business failure' from academic papers published in Asia Pacific Journal of Small Business. In this review, first, we reviewed research trend of failure, published in academic journals at abroad, explored the major topics, and set forth the framework of classification. Second, we selected and analyzed 16 Korean articles in a refined search from total 1,060 articles published in Asia Pacific Journal of Small Business from 1979 to 2019. Third, in order to understand overall research trend in Korea, additional publication search was done by online database system using keywords, and 24 other articles were selected. As a result, five research themes were identified and analyzed: (1) bankruptcy prediction, (2) emotion before and after failure, (3) costs of failure, (4) causes of failure, and (5) reentry determinants. We believe that this purposed review will offer future research issues regarding business failure.