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  • 标题:Financial Fraud Detection Model: Based on Random Forest
  • 本地全文:下载
  • 作者:Chengwei Liu ; Yixiang Chan ; Syed Hasnain Alam Kazmi
  • 期刊名称:International Journal of Economics and Finance
  • 印刷版ISSN:1916-971X
  • 电子版ISSN:1916-9728
  • 出版年度:2015
  • 卷号:7
  • 期号:7
  • 页码:178
  • DOI:10.5539/ijef.v7n7p178
  • 出版社:Canadian Center of Science and Education
  • 摘要:

    Business’s accelerated globalization has weakened regulatory capacity of the law and scholars have been paid attention to fraud detection in recent years. In this study, we introduced Random Forest (RF) for financial fraud technique detection and detailed features selection, variables’ importance measurement, partial correlation analysis and Multidimensional analysis. The results show that a combination of eight variables has the highest accuracy. The ratio of debt to equity (DEQUTY) is the most important variable in the model. Moreover, we applied four statistic methodologies, including parametric and non-parametric models to construct detection models and concluded that Random Forest has the highest accuracy and the non-parametric models have higher accuracy than non-parametric models. However, Random Forest can improve the detection efficiency significantly and have an important practical implication.

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