An Empirical Study On The Application Of SOM Networks In Financial Evaluation Of Listed Companies

Financial Evaluation means to give an analysis & rating on the financial situation andperforming of the companies based on some technologies, with the help of thefinancial statements. According to the financial statements of the listed companies, wecan give a comprehensive financial evaluation of the companies to the investors andthe regulation administrations. It plays an important role for investors' decision andregulators' regulation. In this research, we use Principal-component Analysis toprocess the data from the financial statements and get some optimal indicators namedprinciple components. These new indicators are called MFI-Multiple Financial Index.This research used Factor Analysis to give the MFI a rational economic explanation.They are regarded as the input variables of the proposed Competitive LearningNetwork, and we get a clustering result by using this ANN model. At last, we grade allthe classes from the clustering result and get the financial features of each class ofcompanies. We also use graphs to illuminate the results clearly and intuitively.