Implement data mining and deep learning techniques to detect financial distress.

Financial markets are currently a key source of growth for the local and international economies, as they are the means by which economic units are fed. Iraq is one of the countries attempting to improve and modernize its financial industry in order to stay up with technology advancements and the digital revolution. Forecasting and early detection of financial distress is one of the important methods that contribute to increasing confidence between investors and the market and help to make sound decisions in a timely manner in order to avoid reaching bankruptcy. This paper aims to employ smart models in the detection of financial distress, and to select the best model capable of classifying the financial situation of companies into three categories (non-distress, medium distress and high distress) by selecting (14) financial ratio that directly affects the situation of companies. The researcher used artificial neural networks algorithms such as the reverse error propagation algorithm, Using data mining methods and deep learning algorithms, the C4.5 algorithm, Naive Bayes simple classifier algorithm, Convolutional neural networks algorithm, and a multi-layered algorithm support vector machine were used to classify a company's financial state. The C4.5 method and SVM had the highest rating accuracy by a tiny margin in all levels (98, 96.9, and 91.9) respectively, according to the results of the analysis. The most essential recommendations included the fundamental requirement of using smart technology in recognizing financial challenges of companies in order to support and consolidate the economic stability of enterprises in particular and the market in general in the adoption of the Iraqi stock market. [ABSTRACT FROM AUTHOR]