Analysis on Influencing Factors of Financial Risk in China Media Industry Based on Entropy-critic Method and XGBoost

Abstract

In order to strengthen the government's understanding and control of the current situation of the media industry, it is necessary to evaluate the performance evaluation and financial risk of media companies. Based on this, firstly, by selecting the data of 66 Chinese listed media companies, this paper analyzes the financial performance evaluation indicators of their four abilities, including operating ability, profitability, development ability and solvency. Then combine the traditional evaluation methods with machine learning, and use entropy method and xgboost to quantify and evaluate the comprehensive financial performance and risk of enterprises. The empirical results show that the model can well reflect the financial risk of enterprises. In addition, we can get that the weights that affect the company's financial risk ability are profitability, development ability, solvency and operation ability from large to small. Finally, this paper puts forward relevant suggestions to promote the healthy development of the media industry and optimize the internal financial management.