Using artificial neural network to predict the financial distress : the case of some Algerian companies

Abstract EN

The main objective of this study is to use one of the modern financial analysis methods and one of the most important artificial intelligence techniques to predict financial distress, by designing a back-propagation artificial neural network model and applying it on the (10) selected Algerian companies for the period between (2015-2019).

To the best of our knowledge, there are very few studies that treated this issue in Algeria.

We concluded that the model was able to distinguish the financial situation of the companies under test in accordance with their actual financial situation, as the percentage of its predictive accuracy reached to 100%, knowing that the error rates were almost non-existent.