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Management of the Formation of Rating Preferences of Economic Entities upon Collective Choice

Author

Listed:
  • Yury D. Motorygin

    (Saint Petersburg University of State Fire Service of EMERCOM of Russia, 149, Moskovsky Avenue, Saint Petersburg, 196105, Russia)

  • Vladimir S. Artamonov

    (Russian Ministry for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters, Teatralny prospect, 3., Moscow, 109012, Russia,)

  • Alexander V. Maximov

    (Saint Petersburg University of State Fire Service of EMERCOM of Russia, 149, Moskovsky Avenue, Saint Petersburg, 196105, Russia,)

  • Elena N. Trofimets

    (Saint Petersburg University of State Fire Service of EMERCOM of Russia, 149, Moskovsky Avenue, Saint Petersburg, 196105, Russia)

  • Valeriy Y. Trofimets

    (Saint Petersburg University of State Fire Service of EMERCOM of Russia, 149, Moskovsky Avenue, Saint Petersburg, 196105, Russia)

Abstract

The applicability of a set of methods in the case of obtaining mixed results of the final ranking of economic entities in the process of their rating assessment has been substantiated. A new method of the formation of rating preferences upon collective choice has been proposed. The methodology is based on the following: An information base in the form of a summary table of ratings of compared entities; a procedure for the formation of rating preferences based on a rank-sum (or arithmetic means of ranks); a procedure for the formation of rating preferences with the joint application of rating arithmetic means and position indicators; a procedure for the formation of rating preferences using the Kemeny median. The proposals for the calculation of weighting factors of the voting procedures and modification of the procedure for profiling the preferences using the Kemeny median have been made. An algorithm for the use of the proposed method has been developed. Methodology testing has been conducted upon the rating assessment of the financial and economic condition of industrial enterprises

Suggested Citation

  • Yury D. Motorygin & Vladimir S. Artamonov & Alexander V. Maximov & Elena N. Trofimets & Valeriy Y. Trofimets, 2016. "Management of the Formation of Rating Preferences of Economic Entities upon Collective Choice," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1956-1964.
    • Handle: RePEc:eco:journ1:2016-04-87
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    References listed on IDEAS

    as
    1. Amato, Jeffery D. & Furfine, Craig H., 2004. "Are credit ratings procyclical?," Journal of Banking & Finance, Elsevier, vol. 28(11), pages 2641-2677, November.
    2. Carling, Kenneth & Jacobson, Tor & Linde, Jesper & Roszbach, Kasper, 2007. "Corporate credit risk modeling and the macroeconomy," Journal of Banking & Finance, Elsevier, vol. 31(3), pages 845-868, March.
    3. Altman, Edward I. & Rijken, Herbert A., 2004. "How rating agencies achieve rating stability," Journal of Banking & Finance, Elsevier, vol. 28(11), pages 2679-2714, November.
    4. Thomas L. Saaty & Luis G. Vargas, 2013. "The Analytic Network Process," International Series in Operations Research & Management Science, in: Decision Making with the Analytic Network Process, edition 2, chapter 0, pages 1-40, Springer.
    5. Thomas L. Saaty & Luis G. Vargas, 2013. "Decision Making with the Analytic Network Process," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4614-7279-7, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    System Analysis; Management of Economic Systems; Economic-mathematical Modeling; Rating Assessment; Financial and Economic Condition;
    All these keywords.

    JEL classification:

    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • P49 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Other

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