DOI: 10.1142/s021884302350020x ISSN:

A Novel Political Optimizer-Based Feature Selection with an Optimal Machine Learning Model for Financial Crisis Prediction

Swathy Vodithala, Raghuram Bhukya
  • Computer Science Applications
  • Information Systems

In today’s digital environment, business intelligence advances make it difficult to stay competitive and up to date on business trends. Decision-making in the financial industry is increasingly being powered by big data and machine learning. A decision-making process may be thought of as any sequence of processes that an individual goes through in order to select the option or course of action that is most suitable to meet their needs and necessities. The ability to anticipate the onset of a financial crisis is a significant economic phenomenon. A nation’s economic development and strength can be gauged by its capacity to provide an accurate assessment of the number of failed firms and the frequency with which they fail. The economics of the globe have been ravaged by recent global crises like as the COVID-19 pandemic and other recent environmental, financial, and economic disasters, which have marginalized efforts to construct a maintainable economy and civilization. The health and growth of a nation’s economy can be determined by precisely estimating the number of enterprises that will fail and the number that will succeed. Historically, there have been numerous strategies for constructing a successful financial crisis prediction (FPC) method. Effectively predicting business failures is a gauge of a country’s economic health. Several strategies are available for effective FCP. Classification performance, forecast accuracy, and legality are insufficient for practical use. Several of the suggested methods work for some issues. The specific dataset is not expandable. To improve classification, design a good prediction model adaptable to several datasets. An effective financial crisis prediction method (FPC) requires the right qualities. ML models can also be used to classify a company’s financial health. This research presents political optimizer-based feature selection (POFS) with optimal cascaded deep forest (OCDF) for FCP in big data environments. Hadoop Map Reduce handles huge datasets. POFS reduces computing complexity by handling feature selection. POFS is an original FCP algorithm categorization using OCDF. SFO is used to optimize CDF model parameters. A thorough simulation study was performed to evaluate POFS performance on benchmark datasets OCDFs. The results confirmed the POFS-OCDF method’s superiority over state-of-the-art approaches. With an outstanding sensitivity of 0.912, specificity of 0.953, accuracy of 0.944, F-score of 0.930, and Matthews correlation coefficient (MCC) of 0.912, the proposed POFS-OCDF technique has shown optimum results. The experimental results demonstrated that the POFS-OCDF technique outperformed other recently developed strategies on a variety of criteria. As previously stated, Sunflower optimization (SFO) is also used to tune the Cascaded Deep Forest (CDF) parameters. A detailed simulation analysis is performed based on the benchmark dataset to evaluate the higher classification efficiency of the POFS-OCDF technique. The invention of the POFS algorithm for FCP exemplifies the work’s originality.

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