The Bankruptcy prediction of Tehran Stock Exchange Using Firefly Algorithm (FA)

Subject Areas : Financial engineering

ali bayat ¹ , Seyyed Ali Reza Ahmadi ² , majid mohamadi ³

1 - Assistant Professor of Accounting Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran
2 - M.A. Student in Accounting, Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran
3 - Ph.D Student in Accounting, Department of Accounting, Zanjan Branch, Islamic Azad University,Zanjan, Iran

Received: 2018-03-12 Accepted : 2018-04-24 Published : 2018-12-22

Keywords: Financial ratios, glowworm algorithm, bankrupting, smart intelligence, ultra- discovery methods,

Abstract :

Investor, stockholders, managers, beneficiaries, with broke of company, would lost their assets. Thus, existence of mechanism which could be evaluating and expecting of financial crisis of companies, is essential. A lot of research, implemented about expecting of bankrupt, which using of smart intelligence algorithms and ultra-discovery, were of the models of recent decay. In this study, with using of information of stock exchange center of TEHRAN (1390-1395), 45 successful firms and 25 bankrupt firms, have been researched. Financial ratios were of the variables of this study, which these variables with using of ultra-discovery algorithm of glowworm, identified as one of the models of smart intelligence and effective ratios in bankrupting. It includes of 9 financial ratios and in long with this process, valid and broke firms have been ranked. Two hypothesis have been codified for this study, which the result of them, in order to justified of these hypothesis, indicating of 95/12 correct expecting of first year, 5/36 for second year, and 80/48 for third year.