Reflections on Text Mining Approaches in Corporate Failure Prediction based on German Financial Statements
The field of corporate risk assessment is in a state of flux due to society's increased expectations of statistical methods, which are classified as part of the field of machine learning. While in earlier times multivariate methods were used to calculate bankruptcy probabilities, nowadays a new picture is emerging. The analysis of structured data alone is no longer sufficient to reflect diverse developments on the market and in companies and to find an explanation for them accordingly. The analysis of unstructured data is increasingly coming into focus, as increased computing capacities now...