Jun Huang, Jun Huang, Haibo Wang, Haibo Wang, Gary Kochenberger, Gary Kochenberger
Management Decision,Vol. 55, Issue 5, Pages: 786-807.

Purpose The authors develop a framework to build an early warning mechanism in detecting financial deterioration of Chinese companies. Many studies in the financial distress and bankruptcy prediction literature rarely do they examine the impact of pre-processing financial indicators on the prediction performance. The purpose of this paper is to address this shortcoming. Design/methodology/approach The proposed framework is evaluated by using both original and discretized data, and a least absolute shrinkage and selection …
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