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Firm Credit Scoring: A Series Two-Stage DEA Bootstrapped Approach.
- Source :
- Journal of Risk & Financial Management; May2021, Vol. 14 Issue 5, p1-12, 12p
- Publication Year :
- 2021
-
Abstract
- This paper employs a cross-sectional research design to collect quantitative data for a group of Greek pharmaceutical companies in order to evaluate their credit risk. The data are processed using a variety of quantitative approaches, including series two-stage data envelopment analysis (DEA) combined with bootstrap and hierarchical clustering. The results of the two-stage DEA bootstrapped analysis indicate that the key problem with the firms' performance is a lack of effectiveness rather than operating efficiency. The lack of a correlation between operating efficiency and effectiveness indicates that the firms' performance metrics are unrelated. As a result, a bootstrapped DEA-based synthetic indicator is developed to be used with the other performance metrics as inputs to hierarchical clustering to divide sample firms into credit risk clusters. The series two-stage DEA bootstrapped approach used in this study could aid firms in evaluating their performance and increasing their competitive advantages. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 19118066
- Volume :
- 14
- Issue :
- 5
- Database :
- Complementary Index
- Journal :
- Journal of Risk & Financial Management
- Publication Type :
- Academic Journal
- Accession number :
- 150489646
- Full Text :
- https://doi.org/10.3390/jrfm14050214