• Journal of Navigation and Port Research
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• v.29 no.4
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• pp.349-355
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• 2005

The use of the internet to facilitate commerce among companies promises vast benefits. Lots of e-marketplaces are building for several industries such as chemistry, airplane, and automobile industries. This study provides the new B2B EC business model for the shipping industry which concerns relatively massive fixed assets to be fully utilized. To be successful the proposed model gives participants useful information. To do this the expert system is constructed with the hybrid prediction system of neural network (NN) and memory based reasoning (MBR) with self-organizing map (SOM) and knowledge augmentation technique using qualitative reasoning (QR). The expert system supports participants useful information coping with dynamic market environment. with this shipping companies are induced to participate in the proposed e-marketplace and helped for exchanges easily. Also participants would utilize their assets fully through B2B exchanges.

• Journal of the Korean Institute of Intelligent Systems
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• v.11 no.3
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• pp.223-230
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• 2001

Since self-organizing map (SOM) preserves the topology of ordering in input spaces and trains itself by unsupervised algorithm, it is Llsed in many areas. However, SOM has a shortcoming: structure cannot be easily detcrmined without many trials-and-errors. Structure-adaptive self-orgnizing map (SASOM) which can adapt its structure as well as its weights overcome the shortcoming of self-organizing map: SASOM makes use of structure adaptation capability to place the nodes of prototype vectors into the pattern space accurately so as to make the decision boundmies as close to the class boundaries as possible. In this scheme, the initialization of weights of newly adapted nodes is important. This paper proposes a method which optimizes SASOM with genetic algorithm (GA) to determines the weight vector of newly split node. The leanling algorithm is a hybrid of unsupervised learning method and supervised learning method using LVQ algorithm. This proposed method not only shows higher performance than SASOM in terms of recognition rate and variation, but also preserves the topological order of input patterns well. Experiments with 2D pattern space data and handwritten digit database show that the proposed method is promising.

• Journal of Intelligence and Information Systems
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• v.21 no.3
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• pp.79-99
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• 2015

The prediction of bankruptcy has been extensively studied in the accounting and finance field. It can have an important impact on lending decisions and the profitability of financial institutions in terms of risk management. Many researchers have focused on constructing a more robust bankruptcy prediction model. Early studies primarily used statistical techniques such as multiple discriminant analysis (MDA) and logit analysis for bankruptcy prediction. However, many studies have demonstrated that artificial intelligence (AI) approaches, such as artificial neural networks (ANN), decision trees, case-based reasoning (CBR), and support vector machine (SVM), have been outperforming statistical techniques since 1990s for business classification problems because statistical methods have some rigid assumptions in their application. In previous studies on corporate bankruptcy, many researchers have focused on developing a bankruptcy prediction model using financial ratios. However, there are few studies that suggest the specific types of bankruptcy. Previous bankruptcy prediction models have generally been interested in predicting whether or not firms will become bankrupt. Most of the studies on bankruptcy types have focused on reviewing the previous literature or performing a case study. Thus, this study develops a model using data mining techniques for predicting the specific types of bankruptcy as well as the occurrence of bankruptcy in Korean small- and medium-sized construction firms in terms of profitability, stability, and activity index. Thus, firms will be able to prevent it from occurring in advance. We propose a hybrid approach using two artificial neural networks (ANNs) for the prediction of bankruptcy types. The first is a back-propagation neural network (BPN) model using supervised learning for bankruptcy prediction and the second is a self-organizing map (SOM) model using unsupervised learning to classify bankruptcy data into several types. Based on the constructed model, we predict the bankruptcy of companies by applying the BPN model to a validation set that was not utilized in the development of the model. This allows for identifying the specific types of bankruptcy by using bankruptcy data predicted by the BPN model. We calculated the average of selected input variables through statistical test for each cluster to interpret characteristics of the derived clusters in the SOM model. Each cluster represents bankruptcy type classified through data of bankruptcy firms, and input variables indicate financial ratios in interpreting the meaning of each cluster. The experimental result shows that each of five bankruptcy types has different characteristics according to financial ratios. Type 1 (severe bankruptcy) has inferior financial statements except for EBITDA (earnings before interest, taxes, depreciation, and amortization) to sales based on the clustering results. Type 2 (lack of stability) has a low quick ratio, low stockholder's equity to total assets, and high total borrowings to total assets. Type 3 (lack of activity) has a slightly low total asset turnover and fixed asset turnover. Type 4 (lack of profitability) has low retained earnings to total assets and EBITDA to sales which represent the indices of profitability. Type 5 (recoverable bankruptcy) includes firms that have a relatively good financial condition as compared to other bankruptcy types even though they are bankrupt. Based on the findings, researchers and practitioners engaged in the credit evaluation field can obtain more useful information about the types of corporate bankruptcy. In this paper, we utilized the financial ratios of firms to classify bankruptcy types. It is important to select the input variables that correctly predict bankruptcy and meaningfully classify the type of bankruptcy. In a further study, we will include non-financial factors such as size, industry, and age of the firms. Thus, we can obtain realistic clustering results for bankruptcy types by combining qualitative factors and reflecting the domain knowledge of experts.