Integrating Neural Network and Colonial Competitive Algorithm: A New Approach for Predicting Bankruptcy in Tehran Security Exchange

Bankruptcy filings are as high today as ever, calling into question the efficacy of existing bankruptcy prediction models. This paper tries to provide an alternative for bankruptcy prediction by integrated Multi Layered Perceptron with Imperialist Competitive Algorithm (MLP-ICA) and Kohonen self organizing map. Research sample consist of 70 bankrupts and non-bankrupt company in 2001-2009 and in listed firms of Tehran Stock Exchange. Results indicate that MLP-ICA model outperform Kohonen self organizing map.

Bankruptcy, Prediction, Neural Network, imperialist competitive algorithm