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Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm

To improve enterprise financial early warning, we propose an algorithm based on a decision tree. According to the shortcomings and defects of the classical algorithm and the traditional decision tree algorithm, in the ordinary decision tree improved algorithm based on PCA, there is a problem that th...

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Detalles Bibliográficos
Autores principales: Hong, Sen, Wu, Han, Xu, Xiujuan, Xiong, Wei
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Hindawi 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9303102/
https://www.ncbi.nlm.nih.gov/pubmed/35875777
http://dx.doi.org/10.1155/2022/9182099
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author Hong, Sen
Wu, Han
Xu, Xiujuan
Xiong, Wei
author_facet Hong, Sen
Wu, Han
Xu, Xiujuan
Xiong, Wei
author_sort Hong, Sen
collection PubMed
description To improve enterprise financial early warning, we propose an algorithm based on a decision tree. According to the shortcomings and defects of the classical algorithm and the traditional decision tree algorithm, in the ordinary decision tree improved algorithm based on PCA, there is a problem that the representativeness of the data after dimensionality reduction processing are not high, resulting in the fact that the accuracy of the algorithm can be improved slightly after multiple data runs. Based on the classical algorithm, attribute eigenvalues before classification are extracted twice, and the amount of data to be classified is calculated. That is, the most important attributes of the original data are selected. After the subtree is established, the dimension reduction and merging selection of the data are performed, and the improved algorithm is verified by using three data sets in the UCI database. The results show that the average accuracy in the three datasets is 94.6%, which is improved by 1.6% and 0.6% for the traditional classical algorithm and the ordinary PCA decision tree optimization algorithm, respectively. PCA-based decision tree algorithms can improve the accuracy of the results to some extent, which is of practical importance. In the future, a classic algorithm improved for secondary modeling will be used to obtain a more efficient decision tree model. The decision tree algorithm has been proven to recognize an early warning of an enterprise's financial risks, which enhances the effectiveness of an enterprise's early financial warning.
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spelling pubmed-93031022022-07-22 Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm Hong, Sen Wu, Han Xu, Xiujuan Xiong, Wei Comput Intell Neurosci Research Article To improve enterprise financial early warning, we propose an algorithm based on a decision tree. According to the shortcomings and defects of the classical algorithm and the traditional decision tree algorithm, in the ordinary decision tree improved algorithm based on PCA, there is a problem that the representativeness of the data after dimensionality reduction processing are not high, resulting in the fact that the accuracy of the algorithm can be improved slightly after multiple data runs. Based on the classical algorithm, attribute eigenvalues before classification are extracted twice, and the amount of data to be classified is calculated. That is, the most important attributes of the original data are selected. After the subtree is established, the dimension reduction and merging selection of the data are performed, and the improved algorithm is verified by using three data sets in the UCI database. The results show that the average accuracy in the three datasets is 94.6%, which is improved by 1.6% and 0.6% for the traditional classical algorithm and the ordinary PCA decision tree optimization algorithm, respectively. PCA-based decision tree algorithms can improve the accuracy of the results to some extent, which is of practical importance. In the future, a classic algorithm improved for secondary modeling will be used to obtain a more efficient decision tree model. The decision tree algorithm has been proven to recognize an early warning of an enterprise's financial risks, which enhances the effectiveness of an enterprise's early financial warning. Hindawi 2022-07-14 /pmc/articles/PMC9303102/ /pubmed/35875777 http://dx.doi.org/10.1155/2022/9182099 Text en Copyright © 2022 Sen Hong et al. https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
spellingShingle Research Article
Hong, Sen
Wu, Han
Xu, Xiujuan
Xiong, Wei
Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title_full Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title_fullStr Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title_full_unstemmed Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title_short Early Warning of Enterprise Financial Risk Based on Decision Tree Algorithm
title_sort early warning of enterprise financial risk based on decision tree algorithm
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9303102/
https://www.ncbi.nlm.nih.gov/pubmed/35875777
http://dx.doi.org/10.1155/2022/9182099
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