Bankruptcy Prediction Using Genetic Algorithm-Support Vector Machine (GA-SVM) Feature Selection and Stacking

Abstract

Bankruptcy is an impact caused by a company's financial failure. Financial failure in the company must be avoided so as not to cause losses to the company. In the research that was carried out utilizing a data set from the Taiwan Economic Journal as many as 6,819 to be trained using machine learning algorithms using classification techniques. The goal obtained from the research conducted is to obtain a classification technique with the best accuracy results. The method used in this research is preprocessing using the synthetic minority over-sampling technique to handling unbalanced data sets. Then, the results of the balanced data set will be processed using a genetic algorithm-support vector machine feature selection algorithm to reduce the attributes of the data set. Data sets that have experienced reduced attributes will be trained using the stacking method with a single classifier base learner in the form of k-nearest neighbors, naïve bayes, decision trees with classification and regression tree models, gradient boosting decision trees, and light gradient boosting. The meta-learner used in the stacking method is extreme gradient boosting. The results of the accuracy obtained from the research conducted were 99.22%.