INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER

Business insolvency in the building and construction industry is a major concern on a worldwide scale, and it is particularly pervasive in the Australian construction industry. Many Australian construction companies frequently uses high levels of borrowing and poor profit margins, which increases th...

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Main Authors: Bu, Lishan, Wang, Shaoli, Lin, Gang, Xu, Honglei
Format: Journal Article
Published: 2024
Online Access:http://purl.org/au-research/grants/arc/LP160100528
http://hdl.handle.net/20.500.11937/96302
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author Bu, Lishan
Wang, Shaoli
Lin, Gang
Xu, Honglei
author_facet Bu, Lishan
Wang, Shaoli
Lin, Gang
Xu, Honglei
author_sort Bu, Lishan
building Curtin Institutional Repository
collection Online Access
description Business insolvency in the building and construction industry is a major concern on a worldwide scale, and it is particularly pervasive in the Australian construction industry. Many Australian construction companies frequently uses high levels of borrowing and poor profit margins, which increases the likelihood of insolvency. This paper develops a novel, intelligent insolvency prediction model for the Australian construction companies. The proposed framework with bidirectional long short-term memory (BiLSTM) models and autoencoder techniques contains not only the financial variables but also other important indicators that are linked to the features of the sector that have previously been disregarded. Finally, numerical experiments show that the proposed neural network model outperforms several existing models for predicting the insolvency of construction companies.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-963022024-11-26T00:27:12Z INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER Bu, Lishan Wang, Shaoli Lin, Gang Xu, Honglei Business insolvency in the building and construction industry is a major concern on a worldwide scale, and it is particularly pervasive in the Australian construction industry. Many Australian construction companies frequently uses high levels of borrowing and poor profit margins, which increases the likelihood of insolvency. This paper develops a novel, intelligent insolvency prediction model for the Australian construction companies. The proposed framework with bidirectional long short-term memory (BiLSTM) models and autoencoder techniques contains not only the financial variables but also other important indicators that are linked to the features of the sector that have previously been disregarded. Finally, numerical experiments show that the proposed neural network model outperforms several existing models for predicting the insolvency of construction companies. 2024 Journal Article http://hdl.handle.net/20.500.11937/96302 10.3934/jimo.2023151 http://purl.org/au-research/grants/arc/LP160100528 https://creativecommons.org/licenses/by/4.0/ fulltext
spellingShingle Bu, Lishan
Wang, Shaoli
Lin, Gang
Xu, Honglei
INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title_full INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title_fullStr INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title_full_unstemmed INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title_short INSOLVENCY PREDICTION OF AUSTRALIAN CONSTRUCTION COMPANIES USING DEEP LEARNING WITH BIDIRECTIONAL LSTM AUTOENCODER
title_sort insolvency prediction of australian construction companies using deep learning with bidirectional lstm autoencoder
url http://purl.org/au-research/grants/arc/LP160100528
http://hdl.handle.net/20.500.11937/96302