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Financial Risk Prediction for Listed Companies using IPSO-BP Neural Network

Volume 15, Number 4, April 2019, pp. 1209-1219
DOI: 10.23940/ijpe.19.04.p16.12091219

Sha Lia and Yu Quanb

aZhejiang Industry Polytechnic College, Shaoxing, 312000, China
bScience Technology Bureau of Shaoxing, Shaoxing, 312000, China

 

(Submitted on December 21, 2018; Revised on January 23, 2019; Accepted on February 20, 2019)

Abstract:

Manufacturing is an important part of the market economy. Judgment and analysis of financial risks in the manufacturing industry help promote the healthy development of the real economy. A sample of manufacturing companies for the period 2015-2017 is selected. First, the financial indicators of the companies are screened using principal component analysis. Second, Back Propagation (BP) neural network parameters are optimized using improved particle swarm optimization (IPSO), and a financial risk early warning model based on IPSO-BP is constructed. Finally, an empirical analysis is performed. The analysis results reveal that the model can accurately predict the financial risks of manufacturing companies and provide valuable guidance in the form of a company financial risk warning.

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