A Method for Financial System Analysis of Listed Companies Based on Random Forest and Time Series

Chi Zhang, Huaigong Zhong, Aiping Hu, Mian Ahmad Jan
2022 Mobile Information Systems  
The world economy has recently moved in a fresh era, where the financial world is rapidly developing. Various economic crises, such as banking, economic, and currency crises, impose high economic costs, and harm the entire society. This necessitates the creation of an early warning system for financial crisis that can be adaptively analyzed using past information. Early warning systems could prevent the occurrence of business and economic crises by providing a systematic prediction of
more » ... e events. Early warning systems are mainly used to detect crises before they do damage and to reduce false alarms of impending crises. Because of the above, this paper studies early warning of the financial crisis of listed companies based on random forest and time series. Besides, it constructs a random forest and Boruta-Random forest (BRF) model with Benford factor to deal with the impact of financial data quality on the financial risk early-warning model. Our model can effectively improve the prediction accuracy of the financial early warning model. The experiments show that, in comparison to RF, BRF can increase the accuracy of financial risk early warning, expand the applicability of RF, as well as provide a fresh perspective for research on listed company financial risk early warning.
doi:10.1155/2022/6159459 fatcat:3gm2rx2kebdnxoqgjczqxlz76e