Qualitative indicators (soft-facts) in internal rating systems

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26968631%3A_____%2F18%3AN0000005" target="_blank" >RIV/26968631:_____/18:N0000005 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Qualitative indicators (soft-facts) in internal rating systems

Original language description

The article builds on last year's work, which compared internal rating systems of three banks from the German-speaking region. This year's paper deals in detail with the analysis of qualitative indicators (soft - facts), which is one of the two main components of rating systems of banking clients. The qualitative indicators (soft - facts) have different wage in the considered rating systems, although in all of them the wage is lower than 50% and / or the ability of soft-facts to change the overall rating score is limited. On the other hand, in all cases the importance of qualitative factors is significant enough to pay attention to them. The research is focused on the rating of business entities, more precisely the corporate, (especially limited liability companies or joint-stock companies). It does not deal with the rating of natural persons or non-profit organizations, municipalities etc. The procedure of collecting empirical data as well as data from relevant literature, their assessment according to the criteria of verifiability and relevance and the application of the induction method was used and a generalization of conclusions was subsequently made. The result of the research shows that two categories of qualitative indicators (soft - facts) are present in all considered rating systems: (i) quality of company’s management and / or strategy and (ii) market, where the evaluated company is present. Another regularly present qualitative indicator is (iii) accounting or related indicators like information system or audit quality. On the other hand, the use of the factor (iv) relationship with the bank (or similar) is quite different across the surveyed rating systems. The roles of members of staff in making of the rating are also mentioned.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

European Financial Systems 2018. Proceedings of the 15 th International Scientific Conference

ISBN

978-80-210-8980-8

ISSN

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e-ISSN

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Number of pages

8

Pages from-to

725-732

Publisher name

Masarykova univerzita

Place of publication

Brno

Event location

Brno

Event date

Jan 1, 2018

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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