IDEAS home Printed from https://ideas.repec.org/a/sbr/abstra/v52y2000i4p318-343.html
   My bibliography  Save this article

Creating A Fuzzy Rule-Based Indicator For The Review Of Credit Standing

Author

Listed:
  • Jörg Baetge
  • Christian Heitmann

Abstract

Corporate insolvencies are rising and interest-rate (and thus profit) margins associated with increasing loan volumes are declining. Banking institutions need instruments that can evaluate the credit standing and general financial situation of a company quickly and accurately. Only through the use of such instruments can shaky enterprises be identified early. In this paper, we introduce and focus on a fuzzy rule-based expert system that replicates mathematically the expert knowledge of a loan officer. Our procedure uses a computer to rapidly evaluate a company’s credit standing. We also consider the reliability of an evaluation of a firm’s financial situation, using a credit-evaluation indicator developed from the above procedure. We perform empirical tests of our credit-evaluation indicator on 8,763 actual financial statements from the manufacturing sector.

Suggested Citation

  • Jörg Baetge & Christian Heitmann, 2000. "Creating A Fuzzy Rule-Based Indicator For The Review Of Credit Standing," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 52(4), pages 318-343, October.
    • Handle: RePEc:sbr:abstra:v:52:y:2000:i:4:p:318-343
    as

    Download full text from publisher

    File URL: http://www.vhb.de/sbr/pdfarchive.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Groh, Alexander P., 2004. "Risikoadjustierte Performance von Private Equity-Investitionen," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 21382, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:52:y:2000:i:4:p:318-343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: sbr (email available below). General contact details of provider: https://edirc.repec.org/data/fbmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.