Information Sciences

Difficult and expensive financing has always been a problem for domestic and foreign enterprises, and how to effectively improve financing efficiency and improve the financing environment is a key issue to be studied. LightGBM is an advanced machine learning algorithm , which uses histogram algorithm and Leaf-wise strategy with depth limitation to improve the accuracy of the model. However, there are almost no cases of applying this method to corporate financing risk prediction. Therefore, the paper establishes the LightGBM model to predict the financing risk profile of 186 enterprises. In order to compare the prediction performance of LightGBM for enterprise financing risk, the paper conducted comparison experiments using k-nearest-neighbors algorithm, decision tree algorithm , and random forest algorithm on the same data set. The experiments show that LightGBM has better prediction results than the other three algorithms for several metrics in corporate financing risk prediction. Therefore, we believe that the LightGBM algorithm can be used as an effective tool to predict the financing risk of enterprises.

Corporate finance risk prediction based on LightGBM