Forecasting Corporate Bankruptcy Based on Managerial Overconfidence Using the Adaptive Neuro-Fuzzy Inference System

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This purpose of this study is to examine the relationship between managerial overconfidence and the prediction of bankruptcy and likelihood of the auditor’s hesitation of the company’s going concern over the financially distressed companies listed on the Indonesian Stock Exchange during 2014–2016. Managerial overconfidence is defined as the manager’s excessive confidence that can be measured when the growth of the company’s assets is higher than its sales growth. The financial condition is measured by the prediction of bankruptcy using the adaptive neuro-fuzzy inference system (ANFIS) model. The results showed that the likelihood of an auditor’s hesitation of the company’s going concerns is positively associated with managerial overconfidence in Indonesia because the auditor has a positive view on the ability of management. In addition, there is the likelihood that the auditor’s hesitation of a company’s going concerns is positively associated with the prediction of bankruptcy.
Original languageEnglish
Title of host publicationProceedings of The 3rd International Conference on Vocational Higher Education (ICVHE 2018)
PublisherAtlantis Press
Pages245-255
Number of pages12
Volume426
ISBN (Electronic)978-94-6252-947-2
DOIs
Publication statusPublished - 3 Apr 2020
Event3rd International Conference on Vocational Higher Education (ICVHE 2018): “Understanding Digital World. From Theory to Practices.” - Batam, Indonesia
Duration: 2 Aug 20184 Aug 2018

Publication series

NameAdvances in Social Science, Education and Humanities Research
PublisherAtlantis Press
Volume426
ISSN (Electronic)2352-5398

Conference

Conference3rd International Conference on Vocational Higher Education (ICVHE 2018)
Country/TerritoryIndonesia
CityBatam
Period2/08/184/08/18

Keywords

  • auditor
  • managerial overconfidence
  • forecasting
  • corporate
  • bankruptcy
  • going concern
  • adaptive neuro-fuzzy inference system
  • ANFIS

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