International Journal of Sciences: Basic and Applied Research (IJSBAR) ISSN 2307-4531 (Print & Online) http://gssrr.org/index.php?journal=JournalOfBasicAndApplied -------------------------------------------------------------------------------------------------------------------------------------- Corporate Bankruptcy Prediction: A Case of Emerging Economies Suresh Ramakrishnan a , Maryam Mirzaei b *, Muhammad Naveed c a,b,c Department of Finance, Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia b Email: mmirzai72@yahoo.ca Abstract Bankruptcy has recently upraised as an excessive concern due to the recent world crisis. Early forecasting of firms bankruptcy provides decision-support information for financial and regulatory institutions. In spite of several progressive methods that have widely been proposed, this area of research is not out dated and still needs further examination. In this paper, the performance of different multiple classifier systems are assessed in terms of their capability to appropriately classify bankruptcy and non-bankruptcy Iranian firms listed in Tehran Stock Exchange (TSE). On the other hand, TSE have had very high return which provided more than 140 percent return in last year. For this reason, TSE could be more attractive for investors. Most data mining techniques provided significant improvements over the linear regression. In addition, non-linear classifiers afford enhancement in performance over the linear techniques. Keywords: Bankruptcy prediction; Financial distress; Machine learning 1. Introduction Due to the significant consequences which bankruptcy imposes on different groups of society as well the noteworthy troubles qualified by firms during the Global Financial Crisis, the crucial importance of measuring and providing for credit risk have highlighted. ------------------------------------------------------------------------ * Corresponding author. E-mail address: mmirzai72@yahoo.ca. 177 brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by GSSRR.ORG: International Journals: Publishing Research Papers in all Fields