Early Warning Method And Empirical Study Oncredit Risk Of Internet Finance Companies In China

Internet finance has made a useful supplement to China's original financial system,which is of great significance for alleviating the financing pressure of SMEs and expanding the financing channels for ordinary people.However,with the development of Internet finance and the intensification of competition among industries,the risk issue has become increasingly prominent.Since 2013,Internet finance companies have been experiencing frequent risk problems,capital chain scission has led to difficulties in cash withdrawal,and negative events in which investors' principal income is difficult to cash on time have emerged.The reputation of Internet finance companies has begun to be questioned by more and more people.The credit risk issue has affected the future development of the industry.Therefore,effective early warning of the credit risk of China's Internet finance companies plays an important role in promoting the development of the Internet financial industry and ensuring the stability of China's financial system.Based on credit risk management,this paper systematically studies the early warning model and empirical research of credit risk of Internet finance companies in China based on collating and analyzing relevant research literature at home and abroad.Firstly,the related theories of principal component analysis and BP neural network are summarized,and the research status of credit risk early warning at home and abroad is analyzed.Secondly,it analyzes the development process and main mode of China's Internet finance,and based on this,reveals the characteristics,sources and existing problems of the credit risk of Internet finance companies in China.Furthermore,according to the characteristics of Internet finance companies,the credit risk early warning index system of China's Internet finance companies is constructed.The principal component analysis method is used to screen the credit risk early warning indicators,and the key indicators obtained are used as the input of BP neural network.The credit risk early warning model of China's Internet finance companies based on BP neural network is established.Finally,taking 68 Internet finance listed companies in China as a sample,we collected 204 data from 2015 to 2017,and empirically analyzed the established credit risk early warning model of China's Internet finance companies based on BP neural network.The constructed credit warning model has a good predictive effect on the credit status of China's Internet financial listed companies.The research characteristics and innovations of this paper are mainly as follows:1.Analyze the development mode of Internet finance in China,and explore the characteristics and sources of credit risk of Internet finance companies in China;2.Construct the early warning index system of credit risk of Internet finance companies in China.The credit risk early warning model of China's Internet finance companies based on BP neural network is established.3.Using the sample data of China's Internet finance listed companies,the empirical analysis of the credit risk early warning model of China's Internet finance companies is carried out,and good prediction results are obtained.The research in this paper not only provides an effective and feasible early warning model and method for the credit risk management of China's Internet financial listed companies,but also has theoretical implications for the risk warning of other financial institutions.