The Role of Nonfinancial Indicators in the Process of Credit Risk Assessment

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F18%3A00103882" target="_blank" >RIV/00216224:14560/18:00103882 - isvavai.cz</a>
Result on the web
<a href="http://www.efs.econ.muni.cz" target="_blank" >http://www.efs.econ.muni.cz</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Role of Nonfinancial Indicators in the Process of Credit Risk Assessment
Original language description
Credit risk management is closely related to the bankruptcy prediction and even it was intensely investigated by the banking industry it is still at the forefront of researchers. There is a pressure on financial institutions to still improve their credit risk management system to eliminate credit risk which is one of the most significant financial risks in the banking industry. Many research studies, scientific articles and publications are still trying to find the best method to predict bankruptcy through different bankruptcy models. The reviews from the last years show that using only financial data is not sufficient to predict bankruptcy precisely and some of the researchers also include nonfinancial indicators to their models. The aim of this article is to find which of the nonfinancial indicators have the most significant prediction power to predict failure based on the nonfinancial data from a bank. We have investigated around 1000 companies from the segment small and medium-sized enterprises (SMEs), of which 100 failed during the period 2010 – 2016. The most important nonfinancial indicators from the credit risk point of view were found by using logistic regression.
Czech name
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Czech description
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Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 15th International Scientific conference European Financial Systems 2018
ISBN
9788021089808
ISSN
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e-ISSN
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Number of pages
11
Pages from-to
670-680
Publisher name
Masarykova Univerzita
Place of publication
Brno
Event location
Brno
Event date
Jan 1, 2018
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000462948800086

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