The Role of Non-Financial Factors in Internal Credit Ratings

By J. Grunert, Lars Norden, Martin Weber. 2005

471 citations recorded by the source corpus.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/c22b39506c6966e4cd2b02ab2120251e20771ae0

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Finance

1. Arindam Bandyopadhyay
2. J. Grunert
3. Lars Norden
4. Raffaella Calabrese
5. Haibin Zhu

Citations in the corpus

• Vive la Différence: Social Banks and Reciprocity in the Credit Market (2013, unknown): “Since the bank’s clientele includes a large share of start-ups, this approach is more relevant to its practice than the conventional backward-looking point-in-time measure used to evaluate bankruptcy risks (Grunert et al. 2005).”
• Bargaining power and information in SME lending (2010, background): “Based on the findings that soft information tends to be evaluated more favorably and less volatile over time than hard information (e.g., Grunert et al. 2005 ), we hypothesize that borrower bargaining power is relatively stable over time.”
• The Effects of Corporate and Country Sustainability Characteristics on The Cost of Debt: An International Investigation (2014, unknown): “This somewhat contrasts with the growing literature that shows that the use of non-financial factors (commonly captured by soft information) can lead to more accurate predictions of corporate credit quality, compared with the sole use of purely financial factors (Grunert et al., 2005).”
• Predicting probability of default of Indian corporate bonds: logistic and Z‐score model approaches (2006, methodology): “Subsequently, new analytical techniques like logit or probit models (Martin, 1977; Ohlson, 1980; Zavgren, 1985; Lennox, 1999; Westgaard and Wijst, 2001; Grunert et al., 2005), multidimensional scaling (Mar Molinero and Ezzamel, 1991), artificial neural networks (Tam, 1991; Wilson and Sharda, 1994/19”
• Credit Line Usage, Checking Account Activity, and Default Risk of Bank Borrowers (2010, unknown): “Typically, a bank obtains audited financial statements once a year and assigns an internal credit rating to the borrower that is based on both hard and soft facts (Grunert, Norden, and Weber 2005).”
• Supply chain finance: From traditional to supply chain credit rating (2019, background): “, 2000), considering, for example, management experience and business and industry information, but without going into great depth (Grunert et al., 2005).”
• Emotional Returns and Emotional Costs in Privately Held Family Businesses: Advancing Traditional Business Valuation (2008, unknown): “Solely nonfinancial business goals are often discussed, particularly in the context of management systems ( Grunert, Norden, & Weber, 2005; Kaplan & Norton, 1992).”
• The Value of Non-Financial Information in SME Risk Management (2008, unknown): “Recent literature has highlighted the utility of including variables, age and type of business, industrial sector etc, in combination with financial ratios (Grunet et al, 2004).”