Abstract
Based on analyzing and studying back propagation (BP) neural network method, the article takes 38 cross-section data as modeling sample, and uses 18 data at the same time as the examination sample to establish the financial distinction model. Passed through training and studies repeatedly to the sample, we obtained the more precise forecast result. The findings indicated: the BP neural network is one kind of non-linear mapping model. In the situation that the degree of correlation among the indicators is high, or the data present nonlinearities change, or the data have omissions and so on, using BP neural network may obtain the quite satisfactory result, therefore it is a quite ideal forecast method, and has the widespread application scope and the high reference value.
Highlights
The financial classification model refers to the mathematical model that can distinguish business financial condition and take suitable measure promptly through observing and analyzing some sensitive financial norms
For the investor and the Chief Financial Officer, they can make correct investment choice according to dynamic analysis of the financial classification index; but regarding to listed companies, they can reveal the question which exists in the financial management according to the above, and adjust the management strategy of company promptly, to avoid falling into ranks of ST, or PT
We compute financial ratio using the financial targets in public financial report form, and establish financial classification distinction model based on the method of neural network applying neural network method
Summary
The financial classification model refers to the mathematical model that can distinguish business financial condition and take suitable measure promptly through observing and analyzing some sensitive financial norms. For the investor and the Chief Financial Officer, they can make correct investment choice according to dynamic analysis of the financial classification index; but regarding to listed companies, they can reveal the question which exists in the financial management according to the above, and adjust the management strategy of company promptly, to avoid falling into ranks of ST, or PT. We compute financial ratio using the financial targets in public financial report form, and establish financial classification distinction model based on the method of neural network applying neural network method
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