Design of Financial Crisis Early Warning Model Based on PSO-SVM Algorithm

Abstract

To address the problem that the accuracy of the SVM algorithm is affected by random parameters at the input end, a financial crisis early warning model (FCEWM) based on PSO-SVM is constructed based on the nonequilibrium sample characteristics of different financial conditions of listed companies in China's gem. The model uses the PSO algorithm to optimize the parameters of SVM and selects 24 financial risk evaluation indexes as the input to predict the financial crisis. The results show that the proposed model is superior to other models in prediction accuracy and robustness.