Comparison of banking rating systems

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26968631%3A_____%2F17%3AN0000021" target="_blank" >RIV/26968631:_____/17:N0000021 - isvavai.cz</a>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Comparison of banking rating systems

Popis výsledku v původním jazyce

The aim of the article is to compare several rating systems used by banks and their affiliates, especially in German-speaking countries and Central European countries. The research is focused on the rating of business entities, more precisely the corporate, (especially limited liability companies or joint-stock companies). In particular, two aspects of the rating of the corporate are highlighted in the rating system comparison, namely: (i) which quantitative indicators are used for the calculation of the hard-facts (quantitative analysis based on data from reports, especially balance sheets and profit and loss accounts); and (ii) how the soft-facts are included in the rating system (qualitative indicators usually based on a questionnaire). In addition, the hard- and soft-facts weights used to calculate the overall rating result are mentioned and whether these scales are always constant, or vary with a change in a certain quantity of the rated enterprise (usually the size). Also some other characteristics of individual rating systems are briefly mentioned, like the resulting rating scale used. The procedure of collecting empirical data, 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 concerning the quantitative indicators (i), the highest emphasis is put on the capital structure of an enterprise (whether in the form of Equity to Liabilities or Equity to Total assets) in all compared rating systems. Concerning the other indicators used for the calculation, the monitored rating systems are different, and the total number of indicators also differs (from 6 to 9). For soft-facts (ii) all rating systems agree on some of the queries (e.g. the sensitivity of the rated entity to market fluctuations), but otherwise the number and the topics of the queries overlap only partially.

Název v anglickém jazyce

Comparison of banking rating systems

Popis výsledku anglicky

The aim of the article is to compare several rating systems used by banks and their affiliates, especially in German-speaking countries and Central European countries. The research is focused on the rating of business entities, more precisely the corporate, (especially limited liability companies or joint-stock companies). In particular, two aspects of the rating of the corporate are highlighted in the rating system comparison, namely: (i) which quantitative indicators are used for the calculation of the hard-facts (quantitative analysis based on data from reports, especially balance sheets and profit and loss accounts); and (ii) how the soft-facts are included in the rating system (qualitative indicators usually based on a questionnaire). In addition, the hard- and soft-facts weights used to calculate the overall rating result are mentioned and whether these scales are always constant, or vary with a change in a certain quantity of the rated enterprise (usually the size). Also some other characteristics of individual rating systems are briefly mentioned, like the resulting rating scale used. The procedure of collecting empirical data, 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 concerning the quantitative indicators (i), the highest emphasis is put on the capital structure of an enterprise (whether in the form of Equity to Liabilities or Equity to Total assets) in all compared rating systems. Concerning the other indicators used for the calculation, the monitored rating systems are different, and the total number of indicators also differs (from 6 to 9). For soft-facts (ii) all rating systems agree on some of the queries (e.g. the sensitivity of the rated entity to market fluctuations), but otherwise the number and the topics of the queries overlap only partially.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2017

Kód důvěrnosti údajů

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

Název statě ve sborníku

European Financial Systems 2017

ISBN

978-80-210-8609-8

ISSN

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e-ISSN

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Počet stran výsledku

8

Strana od-do

383-390

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno

Datum konání akce

1. 1. 2017

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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