Constructing the Model of Enterprise Financial Crisis with Principal Component Analysis and ANN

The paper studies the application of principal component analysis and ANN (Artificial Neural Networks) for pre-warning of enterprise financial crisis, analyzes the factors of financial crisis, and constructs the model of the enterprise financial crisis with principal component analysis and ANN. It integrates simplifying of enterprise financial crisis index, dynamic learning of financial crisis knowledge by neural network and forecasting of financial crisis, and examples in financial crisis predicting are given to validate the model. The results show the feasibility and validity of the model. The research work supplies a new way for dynamic prediction for Enterprise financial crisis.