Abstract:The devastating effects of the global financial crisis (GFC) have led to a renewed, global interest in the development of an early warning signal (EWS) model. The purpose of the EWS model is to alert policymakers and other stakeholders to the possibility of the occurrence of a crisis. This study estimates a EWS model for predicting the financial crisis in four emerging African economies using a multinomial logit model and a data set covering the period of January 1980 to December 2017. The result of the study … Show more
“…The middle layer and layer of the network are connected with each other, and the neurons communicate with each other through the same network weight. The forward three-layer NN can achieve a good simulation effect on the relationship between input and output, so it is widely used in the research of financial early warning [18]. The Algorithm of BP NN is based on the back-propagation Algorithm.…”
Section: Definition Of Relevant Conceptsmentioning
The occurrence of financial risk will have a great impact on the continuous operation of enterprises, which may lead to significant losses of enterprises and even cause bankruptcy of enterprises. With the increasing downward pressure on the domestic economy, economic transformation and upgrading, and the black swan event of the novel coronavirus epidemic, the operational pressure on listed companies has continued to increase, and the delisting risk of listed companies has gradually emerged. This paper mainly studies the enterprise financial risk early warning based on deep NN(NN). This paper first defines the concept of financial early warning and BP NN, and uses BP NN to construct the financial risk early warning model of listed companies. The model is trained and empirically analyzed. The results of empirical analysis show that the research of this paper is conducive to the development of indicators and methods for the prediction of financial risks of listed enterprises, which is conducive to the reference of regulators and investors.
“…The middle layer and layer of the network are connected with each other, and the neurons communicate with each other through the same network weight. The forward three-layer NN can achieve a good simulation effect on the relationship between input and output, so it is widely used in the research of financial early warning [18]. The Algorithm of BP NN is based on the back-propagation Algorithm.…”
Section: Definition Of Relevant Conceptsmentioning
The occurrence of financial risk will have a great impact on the continuous operation of enterprises, which may lead to significant losses of enterprises and even cause bankruptcy of enterprises. With the increasing downward pressure on the domestic economy, economic transformation and upgrading, and the black swan event of the novel coronavirus epidemic, the operational pressure on listed companies has continued to increase, and the delisting risk of listed companies has gradually emerged. This paper mainly studies the enterprise financial risk early warning based on deep NN(NN). This paper first defines the concept of financial early warning and BP NN, and uses BP NN to construct the financial risk early warning model of listed companies. The model is trained and empirically analyzed. The results of empirical analysis show that the research of this paper is conducive to the development of indicators and methods for the prediction of financial risks of listed enterprises, which is conducive to the reference of regulators and investors.
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