Case-Based Reasoning for Predicting Multiperiod Financial Performances of Technology-Based SMEs

Recently, various types of technology funds became available to support the programs for technology development and commercialization of SMEs (Small and Medium Enterprise) in Korea. However, the potential financial performances have not been sufficiently considered at the selection stage of fund recipient SMEs whereas the default risk has been a major concern. This paper proposes a CBR (Case Based Reasoning) system with GA (Genetic Algorithm) for predicting the EWMA (Exponentially Weighted Moving Average) of multi period financial performances of technology-oriented SMEs. It is expected that the proposed model can be applied to a wide range of technology investment related decision-making procedures.. Key-Words: SME; Technology fund; Multi Period Financial Performances; CBR; GA; EWMA.