Yosza Dasril
Universiti Tun Hussein Onn Malaysia

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Company bankruptcy prediction framework based on the most influential features using XGBoost and stacking ensemble learning Much Aziz Muslim; Yosza Dasril
International Journal of Electrical and Computer Engineering (IJECE) Vol 11, No 6: December 2021
Publisher : Institute of Advanced Engineering and Science

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.11591/ijece.v11i6.pp5549-5557

Abstract

Company bankruptcy is often a very big problem for companies. The impact of bankruptcy can cause losses to elements of the company such as owners, investors, employees, and consumers. One way to prevent bankruptcy is to predict the possibility of bankruptcy based on the company's financial data. Therefore, this study aims to find the best predictive model or method to predict company bankruptcy using the dataset from Polish companies bankruptcy. The prediction analysis process uses the best feature selection and ensemble learning. The best feature selection is selected using feature importance to XGBoost with a weight value filter of 10. The ensemble learning method used is stacking. Stacking is composed of the base model and meta learner. The base model consists of K-nearest neighbor, decision tree, SVM, and random forest, while the meta learner used is LightGBM. The stacking model accuracy results can outperform the base model accuracy with an accuracy rate of 97%.