Literature Review and Comparative Analysis on Finance Early Warning Models
Journal: Advanced Management Science (AMS)
Author: Yunhong Li1, Ling Xia1*, Lulu Ji2
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
The establishment of financial crisis early warning mechanism plays an essential important role in avoiding financial crisis. The predictive accuracy of financial crisis early warning depends on two factors: first, early warning variable; second, early warning model. The study on finance early warning has been gradually developed and innovated on both financial crisis early warning indexes selected and the construction of financial crisis early warning model from single variable model to survival analysis model. Through literature review related to early warning indexes and early warning models, firstly, this paper concludes a literature review on warning indicators and early warning models. Secondly, some typical financial crisis early warning models are contracted and analyzed. Finally, some enlightenment and prospect of financial crisis warning models are presented.