![]() ![]() ![]() This can be confirmed by the fact that the number of ST companies fluctuates only slightly between 55 and 61. Fortunately, this growth in proportion does not mean the quality of domestic listed companies declines. The number of domestically listed companies in the A-share market has increased by about 41.58% from 2016 (2833 listed companies) to 2020 (4011 listed companies). Based on Straight Flush Big Data, the number of “special treatment” (*ST and ST) companies in China's A-share market is increasing year by year, and so is the proportion in the overall listed companies (China Listed Company Health Index Report, 2021). We examine the financial performance of Chinese companies. To further complicate the issue, the international situation is volatile with intensifying competition. Stakeholders need better understanding of the financial status of investment opportunities in order for them to assess expected company survival. The COVID-19 pandemic has increased financial uncertainty which has increased the possibility of company failure. Our model can provide early warning signals of a company's deteriorating financial situation to managers and other related personnel, investors and creditors, government regulators, financial institutions and analysts and others so that they can take timely measures to avoid losses. The results of empirical analysis show that the average correct classification rate of thew hybrid neural network model (99.40%) is higher than that of the Altman Z-score model (86.54%) and of the pure neural network method (98.26%). The new hybrid default prediction model is demonstrated using Chinese data. The contribution of the paper is presentation of a new hybrid enterprise crisis warning model combining Z-score and MLP-ANN models. This paper presents a stock market forecasting model combining a multi-layer perceptron artificial neural network (MLP-ANN) with the traditional Altman Z-Score model. Therefore, financial risk forecasting continues to be a central issue in financial planning, dealing with new types of uncertainty. An initial drop in March 2020 was followed by unexpected rapid growth over 2021. The COVID-19 pandemic led to a great deal of financial uncertainty in the stock market. ![]()
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