Wavelet Neural Networks and Support Vector Machine for Financial Distress Prediction Modelling: The Chinese Case

摘要

Wavelet neural networks (WNN) and support vector machine (SVM) are two advanced methods which are fit for classification. A comparative analysis of the two methods was conducted based on Chinese firms. The results show WNN has good classification effect. Wavelet decomposition has been demonstrated to be an effective tool for recognizing the firms' feature. Also the study applied SVM to the same estimation sample and test sample. The results show SVM is much superior to WNN for small sample learning.