Research on the analysis of financial risk contribution within stocks based on artificial neural networks

Abstract

Since the late 1980s, as stock markets have faced a variety of challenges, the assessment and management of financial risk within stocks has become increasingly important. The management of financial risk within stocks is an important part of modern portfolio investment theory. In order to study the internal influencing factors and risk transmission mechanism of stock price in China, this paper selects a system of 13 indicators from 4 aspects, conducts contribution analysis by constructing ANN (Artificial Neural Network) algorithm, and uses R² ,MSE indicators to test the indicators, and the results show that the growth ability and profitability of enterprises have the most influencing factors on stock price. The research in this paper is beneficial to further explore the internal influencing factors and their intrinsic relationships of Chinese firms' stocks.