Combining Intra-Risk and Contagion Risk for Enterprise Bankruptcy Prediction Using Graph Neural Networks. (arXiv:2202.03874v4 [q-fin.RM] UPDATED)

Predicting the bankruptcy risk of small and medium-sized enterprises (SMEs)
is an important step for financial institutions when making decisions about
loans. Existing studies in both finance and AI research fields, however, tend
to only consider either the intra-risk or contagion risk of enterprises,
ignoring their interactions and combinatorial effects. This study for the first
time considers both types of risk and their joint effects in bankruptcy
prediction. Specifically, we first propose an enterprise intra-risk encoder
based on statistically significant …

arxiv contagion enterprise graph graph neural networks networks neural networks prediction risk