Research Based On The The Entropy Method Of Chinese Listed Company’s Financial Situation Classification

From 1990 to April 2013, in just 23 years, the listed companies increased from the original Fives to 2,492. With the rapid economic development, the listed company’s financial situation is getting more and more complex, and it cannot be divided by " good " and " bad ", " non-ST " and " ST " anymore.This article introduced the entropy theory in physics to the classification research of the corporate financial position. And try to apply entropy method for the objective weighting of the financial indicators, and to the comprehensive evaluation and classification of listed companies. In this paper, the listed companies in China as the research object, and select the manufacturing-"machinery, equipment, instruments," the second stage 296 listed companies in the industry as a research data source. In this paper, filter out 15 financial indicators for capital markets 2010-2012 data from corporate earnings, debt service, operations, and cash flow growth ability five viewpoints, with the academic classical variable selection and entropy method of combining spreadsheet. Then build the index system, using entropy method empowerment on various financial indicators, and seeking the company’s comprehensive negative entropy values. On this basis, using Q-type intelligent clustering method (two-step clustering method) cluster the financial situation of listed companies forming five categories. And study the basic situation of each classification and financial characteristics of different categories. In the same time, try to use different entropy theory to solve the financial position of financial decisions practical problems.This conclusion is as follows, A. The financial indicators in each category of financial situation reflected significantly different ability levels. It proves that the use of entropy method for classification of financial position is effective. B. In each category, the financial indexes which affected the situation of enterprise most are varied significantly. C. It can get the company’s financial status category by using entropy method to calculate company’s business industry sorting or company’s consolidated negative entropy.