The Application of Graph-Structured Cox Model in Financial Risk Early Warning of Companies

What is it about?

An effective financial risk forecast depends on the selection of important indicators from a broad set of financial indicators that are often correlated with one another. In this paper, we address this challenge by proposing a Cox model with a graph structure that allows us to identify and filter out the crucial indicators for financial risk forecasting.

Featured Image

Photo by Lukasz Radziejewski on Unsplash

Photo by Lukasz Radziejewski on Unsplash

Why is it important?

We apply the GR-Cox model to the forecast of the financial risk of listed companies and find that it shows good classification accuracy in practical applications. The GR-Cox model provides a new approach for improving the accuracy of financial risk early warning.