Research on Financial Irregularities of Listed Companies based on Decision Tree Algorithm

Violation of laws and regulations by listed companies is one of the main reasons for continuously disturbing China's securities market in recent years. How to effectively analyze and deal with violations of laws and regulations is an important topic in front of us. This paper makes use of the announcement disclosure and the China Securities Regulatory Commission and its local dispatched institutions Based on the regulatory punishment and punishment information publicly disclosed by Shanghai Stock Exchange and Shenzhen Stock Exchange, this paper analyzes the motivation and characteristics of illegal behaviors of listed companies, and obtains 14 main illegal behaviors. Then it uses the decision tree algorithm of data mining technology to analyze. The research on Financial Violations of listed according to decision tree approach is a systematic analysis method of information. Divide the data into different levels, and then analyze it using decision tree. The decision tree is used to find out whether there are any exceptions or inconsistencies in the data. Therefore, this study can be targeted at all types of financial violations, such as exaggerating profits and underreporting losses.