The increase of competition, economic recession and financial crises has increased business failure and depending on this the researchers have attempted to develop new approaches which can yield more correct and more ...The increase of competition, economic recession and financial crises has increased business failure and depending on this the researchers have attempted to develop new approaches which can yield more correct and more reliable results. The classification and regression tree （CART） is one of the new modeling techniques which is developed for this purpose. In this study, the classification and regression trees method is explained and tested the power of the financial failure prediction. CART is applied for the data of industry companies which is trade in Istanbul Stock Exchange （ISE） between 1997-2007. As a result of this study, it has been observed that, CART has a high predicting power of financial failure one, two and three years prior to failure, and profitability ratios being the most important ratios in the prediction of failure.展开更多
文摘The increase of competition, economic recession and financial crises has increased business failure and depending on this the researchers have attempted to develop new approaches which can yield more correct and more reliable results. The classification and regression tree （CART） is one of the new modeling techniques which is developed for this purpose. In this study, the classification and regression trees method is explained and tested the power of the financial failure prediction. CART is applied for the data of industry companies which is trade in Istanbul Stock Exchange （ISE） between 1997-2007. As a result of this study, it has been observed that, CART has a high predicting power of financial failure one, two and three years prior to failure, and profitability ratios being the most important ratios in the prediction of failure.
