New Approach to Bankruptcy Prediction using Genetic Algorithm

In this research the bankruptcy of companies has been surveyed through the genetic algorithm. To do this and in order to design its related genetic model, the financial ratios have been used and a genetic model has been presented in order to predict bankruptcy of the accepted companies in Tehran Stock Exchange Market. Formulating the related model has been done through the relevant data of two groups of the companies accepted as those in Tehran Stock Exchange Market. The first group consists of 40 non-bankrupt companies, and the second one like the first group includes 40 companies but they were bankrupt ones. The model is represented by using 24 financial ratios consisting of 4 groups of liquidation, profitability, activity, and leverage ratios (Capital Structure). The main point of this essay is that unlik