A COMPARATIVE STUDY ON TWO FINANCIAL CRISIS WARNING MODELS OF OUR COUNTRY'S PARTIAL LISTED COMPANIES

Xiao‐Chao Chen · Journal of Shaanxi University of Science & Technology · 2008

Financial crises warning model is an effective way to prevent financial crises.It uses the principal component analysis model and the BP neural network model to forecast financial difficult position in our listed companies.It uses the cross section financial indexes of 60 listed companies as estimate samples and the corresponding 40 listed companies as testing samples.The result indicates that the BP neural network model is better than the principal components analysis model on the forecasting rate accurately,which will be used in large areas.

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