“…Statistical methods include multiple discriminant analysis (MDA), logit regression and probit regression (Beaver, 1966;Altman, 1968;Ohlson, 1980). Artificial intelligence methods include casebased reasoning, inductive learning, artificial neural networks and knowledge-based expert systems (Dillard & Mutchker, 1987;Chung & Tam, 1992;Wong et al, 1995;Bryant, 1997;Pendharkar, 2007). Recently, the support vector machine (SVM) (Vapnik, 1998) has been introduced to financial applications, such as credit scoring, financial decisions and bankruptcy prediction (Tay & Cao, 2001;Shin et al, 2005;Gestel et al, 2006;Wu et al, 2007;Ding et al, 2008;Tsai, 2008).…”