Predicting of financial distress of companies using the artificial neural networks : a case study of listed industrial companies on Amman Stock Exchange

الملخص EN

This study aims to determine the effectiveness, of artificial neural networks, in predicting the financial distress of industrial companies, listed on the Amman Stock Exchange, in Jordan during the period 2013-2018, using the multi-layers networks model.

To achieve this goal, a sample of 54 companies was selected, of which 26 were sound and 28 were faltering, using 21 financial ratios and SPSS.

This study found the most important findings: the model classified the companies, at an accurate and correct rate achieving 100%, ratings ratios for all the companies, and considering both the return on total assets, dividends distributed to the market value, the earnings per share, market value to return and the net earnings to revenues are the strongest financial ratios, that have the ability to distinguish between the safety or faltering of industrial companies.