Financial Distress Pre-Warning Study On Neural Network Model

Along with the global integrative economic arrival, the market competition is more intense, each enterprise in its management, the market uncertainty and the risk the enterprise faces is also unceasingly enlarging, at any moment each enterprise must guard against the financial risk and the crisis, the financial distress is the question which each enterprise possibly faces. Therefore, the financial distress pre-warning has become the important content of the modern business finance management. The company besets with a finance crisis, not only crisis its own survival and development, but also bring the massive loss to the investor, the creditor. Therefore, the foundation finance distress pre-warning system, makes the forecast to the financial operation, regarding financial organs operator, investor, bank and so on, the related enterprise, chartered accountant and so on makes the decision-making to have the great significance, regardless of analyzes from which standpoint is very essential.The artificial neural networks mainly have auto-adapted, overflow, the misalignment mapping, the highly parallel processing and so on superior function. This article take the enterprise modern management theory as the instruction, the neural network model and the simulation testing unifies, constructs indicator system which has the characteristic financial distress pre-warning based on the neural network model, attempts to establish a kind of the financial distress pre-warning model to be advantageous for the operation, a kind of the method which does not need to the financial norm to carry on the manual handling. This research uses the Matlab project software, carries on the iteration and processing to be listed's financial data training sample according to the neural network algorithm, causes the object-oriented neural network the modelling and the sample study training visualization can realize, finally carries on the pre-warning ability examination to the network.This article is divided five parts of elaboration: The first part, elaborated the business finance difficult position early warning system's selected topic background, the research goal, the significance, the mentality, the method and the domestic and foreign present situations; The second part, elaborated the neural network model and the business finance difficult position early warning system's concept, the characteristic, the function frame, the construction principle and the establishment flow; The third part, has analyzed the traditional early warning system's method and the flaw, the application superiority and realized the method to the neural network method in the financial difficult position early warning to carry on the elaboration specifically; The fourth part, elaborated early warning system's overall functional design method and the procedure, as well as based on the ANN early warning model new idea, introduced the neural network forecast programming as well as the enterprise early warning system's function development; The fifth part, based on the neural network method's early warning system design and the empirical study, uses to be listed finance data which collects, through uses the Matlab software, in carried on the software based on the neural network model under to realize, and analysis proof which carried on to the business finance early warning result; The sixth part, the full text summary and the predict that elaborated this article major point, the achievement as well as the existence insufficiency, and will propose the forecast to this domain's future. Empirical study's result indicated that based on artificial neural networks' financial early warning method is feasible. Certainly this model also has its own shortcoming, that is the financial norm is unable to use to be listed to locate the profession average index, if can take locate the profession average value as standard separate collection sampled data, then its accuracy is higher, its persuasive power is stronger.