EAAI Journal 2026 Journal Article
A case-based reasoning-driven clustering imputation and noise-resistant classification learning paradigm for financial distress prediction with missing and noisy data
- Mengxin Li
- Lean Yu
- Chuanbin Liu
Data missing and noise problems are often encountered when predicting financial distress in real-world scenarios. To address and eliminate the negative effects of missing and noisy data, a novel case-based reasoning CBR-driven clustering imputation and noise-resistant ClusImpute-NoisRes classification learning paradigm is proposed for financial distress prediction to achieve excellent imputation and prediction performance. In this learning paradigm, CBR-driven clustering imputation and CBR-driven noise-resistant classifier prediction are two primary stages. In the first stage, a clustering-based hybrid CBR-driven weighted ClusHyCBR imputation method is introduced to handle the issue of missing data and their uneven distribution. In the second stage, a CBR-driven noise-resistant classification model is constructed to identify class noise and reduce the negative interference of class noise on the prediction model. For illustration and verification, a dataset of Chinese-listed enterprises and its derived multiple datasets with different missing degrees and noise levels are used to conduct the experimental study. Experimental results demonstrate that the proposed ClusHyCBR imputation method consistently outperforms competing methods, improving Type II accuracy by 1.92 percent to 8.99 percent on the original dataset, with increasingly larger gains on higher missing degrees. The proposed CBR-driven noise-resistant classification model maintains noise identification accuracy above 0.8722 and Type II accuracy above 0.7022 after injecting 10 percent to 50 percent class noise, which is significantly higher than that of the base classifier. These outcomes indicate that the CBR-driven ClusImpute-NoisRes classification learning paradigm provides a viable solution for enterprises, regulatory and policy-making bodies, and market participants to support prediction and warning of financial distress with missing and noisy data.