Predicting the Removal of Special Treatment or Delisting Risk Warning for Listed Company in China with Adaboost

摘要

Most previous research focuses on the problem of financial distress prediction or bankruptcy prediction for an ordinary listed company in China. However, few research discuss the problem of predicting the removal of special treatment or delisting risk warning for the listed companies having already receiving risk warning by stock exchange. This problem is also very important for stock investors. In this study, the Adaboost method is employed to construct the model for the prediction of the removal of special treatment or delisting risk for the listed company in China. The empirical results show that Adaboost method is a better alternative when compared to other popular classification techniques and the problem of prediction of the removal of special treatment or delisting risk warning is more challenge than the problem of financial distress prediction.