Forecasting Of Financial Crisis Using Articificial Neural Network

Financial crisis refers to the state of standstill of enterprises when enterprises affected by the mistake in marketing and strategy or unavoidable factors. The enterprises in financial crisis lose money all the time, couldn't pay debt on time and even go to bankrupt. Correct forecasting of such financial crisis among enterprises could protect rights of investors and banker, prevent disaster for executives and help the administrators monitor potential risks.In this paper we make a review about the special treatment scheme in China's securities market and manage to forecast the financial crisis among companies ahead of 2 years. While research abroad focuses on the forecasting of bankruptcy, there is no such material or data available in China. The special treatment scheme marks the company losing money in a row of 2 years to remind investors the risk that the company may be unlisted.Based on the finding from Ruck, we set up a model of ANN probability classifier, which outputs the probabilities of sound condition and financial crisis on the input of 10 financial indicators.Finally, using the financial statements of China's listed companies...