Mixed Financial Forecasting Index System Construct and Financial Forecasting Study on the C4.5 Decision Tree

The current research to construct financial risk forecasting model is base on a suppose: accounting information is real. But the action of enterprise profit control makes the application of financial risk forecasting system lack significance. Hence, this paper introduces non-financial index into financial risk forecasting system to establish mix financial index evaluation system including financial index and non-financial index, and also introduces C4.5 decision tree arithmetic into the modeling process. It also conducts an empirical analysis of listed companies´ financial risk model using the data of 2005 years and 2006 years. The result shows that: the forecasting capability of mix financial index model is better than the model only using financial index.