Credit Scoring for the Supermarket and Retailing Industry: Analysis and Application Proposal
Author
Raffaele Manini – (Universitat Pompeu Fabra)
Oriol Amat – (Universitat Pompeu Fabra)
Received November 3, 2017; accepted November 25, 2017.
Abstract
This paper develops and tests a credit scoring model focused on the supermarket and retailing industry which can help financial institutions in assessing credit requests coming from customers belonging to these industries category. The empirical study has the objective of answering two questions:
(1) Which ratios better discriminate the companies based on their being solvent or insolvent?
(2) What is the relative importance of these ratios?
To do this, several statistical techniques with a multifactorial focus have been applied. The overall approach is the same as the one in Altman (1968), but the application of the design as well as the purpose of it are different. Through the application of several statistical techniques, the credit scoring model has been proved to be effective in assessing credit scoring applications within the supermarket and retailing industry under certain conditions.
Este documento desarrolla y prueba un modelo de calificación crediticia centrado en la industria de supermercados y minoristas que puede ayudar a las instituciones financieras a evaluar las solicitudes de crédito provenientes de clientes que pertenecen a la categoría de estas industrias. El estudio empírico tiene el objetivo de responder dos preguntas:
(1) ¿Qué proporciones discriminan mejor a las empresas por ser solventes o insolventes?
(2) ¿Cuál es la importancia relativa de estas proporciones?
Para hacer esto, se han aplicado varias técnicas estadísticas con un enfoque multifactorial. El enfoque general es el mismo que el de Altman (1968), pero la aplicación del diseño y el propósito del mismo son diferentes. Mediante la aplicación de varias técnicas estadísticas, se ha demostrado que el modelo de calificación crediticia es eficaz para evaluar las aplicaciones de calificación crediticia dentro de la industria de supermercados y minoristas bajo ciertas condiciones.
Citation
Amat, O., & Manini, R. (2017). Credit scoring for the supermarket and retailing industry: analysis and application proposal. European Accounting and Management Review, 4(1), 75-88.
Figures
Keywords
- Credit scoring
- Supermarket
- Retailing industry
Palabras clave
- Puntuacion de credito
- Supermercado
- Industria minorista
Share this article
Related Posts
Article 5, Volume 7 Issue 1
The Role of Awareness, Learning and Knowledge in Entrepreneurial and Firm Leadership Processes Author Neus Vila Brunet – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.1.5 Download PDF View HTML Received October 2, 2020; accepted December 9, 2020. Abstract English Scholars in recent years have urged researchers to shift from their traditional focus on specific characteristics of
Article 4, Volume 7 Issue 1
Does an internship in Business Administration enhance professional competences? Author Ramon Bastida – (UPF Barcelona School of Management) Frederic Marimon – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.1.4 Download PDF View HTML Received April 26, 2020; accepted June 5, 2020. Abstract English The aim of this study was twofold. First, we want to determine which competences
Article 3, Volume 7 Issue 1
Open Innovation in Times of Covid-19: The case of Project OxyGEN Author Giovanna Lara Burbano – (University of Girona) DOI: 10.26595/eamr.2014.7.1.3 Download PDF View HTML Received October 8, 2020; accepted December 9, 2020. Abstract English In the face of the health crisis unleashed by Covid-19, experts worldwide took on the challenge of designing a low-cost