Hierarchical extreme learning machine with L21-norm loss and regularization

TSTELM: Two-Stage Transfer Extreme Learning Machine for Unsupervised Domain Adaptation

As a single-layer feedforward network (SLFN), extreme learning machine (ELM) has been successfully applied for classification and regression in machine learning due to its faster training speed and better generalization. However, it will perform poorly for domain adaptation in which the distributions between training data and testing data are inconsistent. In this article, we propose a novel ELM called two-stage transfer extreme learning machine (TSTELM) to solve this problem. At the statistical matching stage, we adopt maximum mean discrepancy (MMD) to narrow the distribution difference of the output layer between domains. In addition, at the subspace alignment stage, we align the source and target model parameters, design target cross-domain mean approximation, and add the output weight approximation to further promote the knowledge transferring across domains. Moreover, the prediction of test sample is jointly determined by the ELM parameters generated at the two stages. Finally, we investigate the proposed approach in classification task and conduct experiments on four public domain adaptation datasets. The result indicates that TSTELM could effectively enhance the knowledge transfer ability of ELM with higher accuracy than other existing transfer and non-transfer classifiers.

A novel method for financial distress prediction based on sparse neural networks with $$L_{1/2}$$ regularization

Corporate financial distress is related to the interests of the enterprise and stakeholders. Therefore, its accurate prediction is of great significance to avoid huge losses from them. Despite significant effort and progress in this field, the existing prediction methods are either limited by the number of input variables or restricted to those financial predictors. To alleviate those issues, both financial variables and non-financial variables are screened out from the existing accounting and finance theory to use as financial distress predictors. In addition, a novel method for financial distress prediction (FDP) based on sparse neural networks is proposed, namely FDP-SNN, in which the weight of the hidden layer is constrained with \documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$L_{1/2}$$\end{document}L1/2 regularization to achieve the sparsity, so as to select relevant and important predictors, improving the predicted accuracy. It also provides support for the interpretability of the model. The results show that non-financial variables, such as investor protection and governance structure, play a key role in financial distress prediction than those financial ones, especially when the forecast period grows longer. By comparing those classic models proposed by predominant researchers in accounting and finance, the proposed model outperforms in terms of accuracy, precision, and AUC performance.