Financial Crisis Prediction Based on Long-Term and Short-Term Memory Neural Network

There is no author summary for this article yet. Authors can add summaries to their articles on ScienceOpen to make them more accessible to a non-specialist audience.

Abstract

Enterprise financial crisis prediction analysis can predict the business process of enterprises, so that enterprises can take corresponding strategies in time. The financial crisis prediction of listed companies can effectively reflect the business situation, so as to give investors reasonable investment advice. In order to supervise the sustainable management ability of enterprises efficiently and accurately, this paper proposed a financial crisis prediction method based on long-term and short-term memory neural network, so as to provide valuable information for decision-makers. Firstly, the data in the enterprise financial system is analyzed and extracted, and the original data is cleaned and dimensionalized by normalization and feature selection. Then, the long-term and short-term memory neural network is used to build the financial early warning model, and the wolf pack algorithm is used to optimize the initial weight and bias parameters, so as to improve the efficiency of parameter optimization. Finally, the financial data of 20 large- and medium-sized enterprises from 2019 to 2021 are verified and analyzed. The experimental results show that compared with other common machine learning methods, the constructed wolf pack-optimized long-term and short-term memory neural network has the highest prediction performance in terms of root mean square error and goodness of fit, with the goodness of fit reaching 94.2%.

Related collections

Most cited references 29

Record: found
Abstract: not found
Article: not found

Emotion Recognition based on EEG using LSTM Recurrent Neural Network

Salma Alhagry, Aly H. Aly, Reda A. (2017)

0 comments Cited 80 times – based on 0 reviews      Review now

Bookmark

Record: found
Abstract: found
Article: not found

India perspective: CNN-LSTM hybrid deep learning model-based COVID-19 prediction and current status of medical resource availability

Shwet Ketu, Pramod Kumar Mishra (2021)

The epidemic situation may cause severe social and economic impacts on a country. So, there is a need for a trustworthy prediction model that can offer better prediction results. The forecasting result will help in making the prevention policies and remedial action in time, and thus, we can reduce the overall social and economic impacts on the country. This article introduces a CNN-LSTM hybrid deep learning prediction model, which can correctly forecast the COVID-19 epidemic across India. The proposed model uses convolutional layers, to extract meaningful information and learn from a given time series dataset. It is also enriched with the LSTM layer's capability, which means it can identify long-term and short-term dependencies. The experimental evaluation has been performed to gauge the performance and suitability of our proposed model among the other well-established time series forecasting models. From the empirical analysis, it is also clear that the use of extra convolutional layers with the LSTM layer may increase the forecasting model's performance. Apart from this, the deep insides of the current situation of medical resource availability across India have been discussed.