A novel ensemble learning approach for corporate financial distress forecasting in fashion and textiles supply chains

Abstract

This paper proposes a novel ensemble learning approach based on logistic regression (LR) and artificial intelligence tool, that is, support vector machine (SVM) and back-propagation neural networks (BPNN), for corporate financial distress forecasting in fashion and textiles supply chains. Firstly, related concepts of LR, SVM, and BPNN are introduced. Then, the forecasting results by LR are introduced into the SVM and BPNN techniques which can recognize the forecasting errors in fitness by LR. Moreover, empirical analysis of Chinese listed companies in fashion and textile sector is implemented for the comparison of the methods, and some related issues are discussed. The results suggest that the proposed novel ensemble learning approach can achieve higher forecasting performance than those of individual models. © 2013 Gang Xie et al.