USING DECISION TREE TECHNIQUE TO PREDICT THE FINANCIAL FAILURE AND EARNINGS SUSTAINABILITY: A PANEL DATA ANALYSIS
Abstract
The paper aims to predict financial failure in Iraqi private banks using artificial intelligence techniques, the decision tree technique. It also seeks to explore the impact of this technology on the ability of private banks to provide information that helps decision-makers. It avoids financial failure that leads to bankruptcy and unemployment for many of its workforces and limits the power of these banks to finance investment plans for the development process on the one hand. On the other hand, work has been done on the gross domestic product by relying on the profitability index found in the standard panel model to sustain the profits of these banks, which leads to continuing their banking business after depending on (Green GDP) (Green Gross domestic product) as a variable Independent in raising rates of profitability. After amending the (GDP) index (Gross domestic product), it now includes the depletion of natural resources, the high rates of environmental pollution, and the consumption of fixed capital. Thus, all these variables work to give an accurate picture of the decision-maker and enhance banks' profitability. Artificial intelligence technology is one of the advanced technologies that help Iraqi private banks provide the appropriate information that helps them predict financial failure due to several considerations, the most important of which are (their ability to predict, accuracy, speed, ease of interpretation, and understanding, and their uncomplicated calculations. Valuable even in the presence of little data), which is reflected in the ability of the research sample banks to support and finance sustainable development plans in the Iraqi environment in all its aspects, especially (labor and financial support). Results also show that all the standard models used in Panel Data (pooled model, fixed effect, and random effect) of the monetary credit granted by private banks directed towards green output in achieving sustainable profitability for banks
Keyword : Decision Tree, Financial Failure, Earnings Sustainability, Panel Data Analysis
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References
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