International Journal of Advanced Research in Computer Science and Software Engineering (IJARCSSE)
Bankruptcy prediction seems to be most popular topic of the application of Data Mining (DM) techniques on financial data. Corporate bankruptcy causes economic damages for management, investors, creditors and employees together along with social cost. For these reasons bankruptcy prediction is an important issue in finance. Increasing competitiveness among enterprises reduces the availability of resources and augments the risk of bankruptcy. Research has shown that companies tend to postpone the official announcement of their bankruptcy until it is too late.