Financial Risk Early Warning Model Combining SMOTE and Random Forest for Internet Finance Companies

At present, there have been many achievements on enterprise financial risk early warning model, but relatively few early warning studies focusing on the Internet industry. Research shows that the model has stable recognition accuracy and good prediction performance. The improved SMOTE algorithm based on PCA can realize the equalization of unbalanced data sets and use random forest as a classifier to classify and predict geological data. Because the noise data in the original data set may cause the change of the data distribution after interpolation, it is proposed to combine the PCA algorithm and the SMOTE algorithm, first perform noise reduction and dimension reduction, and then perform data interpolation to improve the classification performance of imbalanced data sets. my country's Internet financial listed companies conduct experiments on research samples, algorithm can better improve the classification accuracy and provide new ideas for the classification and prediction of unbalanced data.

Authors

Institutions

Publication Details

Journal
Journal of Cases on Information Technology
Published
2024-10-04
DOI
https://doi.org/10.4018/jcit.356504
Citations
2
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
1.89
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Financial Risk Early Warning Model Combining SMOTE and Random Forest for Internet Finance Companies

Zhongqin Zheng
2 citations
Journal of Cases on Information Technology
Financial Distress and Bankruptcy Prediction
1.89
article

Financial Risk Early Warning Model Combining SMOTE and Random Forest for Internet Finance Companies

Zhongqin Zheng
article en
2 citations

Abstract

At present, there have been many achievements on enterprise financial risk early warning model, but relatively few early warning studies focusing on the Internet industry. Research shows that the model has stable recognition accuracy and good prediction performance. The improved SMOTE algorithm based on PCA can realize the equalization of unbalanced data sets and use random forest as a classifier to classify and predict geological data. Because the noise data in the original data set may cause the change of the data distribution after interpolation, it is proposed to combine the PCA algorithm and the SMOTE algorithm, first perform noise reduction and dimension reduction, and then perform data interpolation to improve the classification performance of imbalanced data sets. my country's Internet financial listed companies conduct experiments on research samples, algorithm can better improve the classification accuracy and provide new ideas for the classification and prediction of unbalanced data.

Journal of Cases on Information TechnologyVol. 26(1)
Shanxi University of Traditional Chinese Medicine (CN), Shanxi Science and Technology Department (CN)
Openalex Percentile: Top 12%
Financial Distress and Bankruptcy Prediction
1.89
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.