Enterprise Financial Early Warning Based on Improved Whale Optimization Algorithm: Optimize the Perspective with Indicators

Abstract

The key to solving the problem of redundant financial indicators in addressing financial warning issues is to reduce the dimensionality of the original financial indicators. This paper proposes a model based on the whale optimization algorithm with mixed strategy (IWOA) combined with support vector machine (SVM), namely, the IWOA-SVM early warning model, which simultaneously performs index optimization and dimensionality reduction, and financial risk early warning identification. This paper takes a total of 302 enterprises specially treated in Shanghai and Shenzhen stock exchanges and normal enterprises of the same specification as the research samples to design the model. The results show that the improved whale optimization algorithm has better optimization speed and accuracy and improves the search ability of the original algorithm for the optimal solution. Compared with other dimensionality reduction methods, the IWOA-SVM model has the lowest index dimension after dimensionality reduction and has more excellent recognition effect. The dimensionality reduction results have certain universality for different classifiers, which provides a new idea for the selection of indicators for financial early warning.