IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2016-04-87.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/3879/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/3879/pdf
    Download Restriction: no
    ---><---

    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. 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.
    4. 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, April.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander Karminsky, 2016. "Rating models: emerging market distinctions," Papers 1607.02422, arXiv.org.
    2. Rachele Corticelli & Margherita Pazzini & Cecilia Mazzoli & Claudio Lantieri & Annarita Ferrante & Valeria Vignali, 2022. "Urban Regeneration and Soft Mobility: The Case Study of the Rimini Canal Port in Italy," Sustainability, MDPI, vol. 14(21), pages 1-27, November.
    3. David Staš & Radim Lenort & Pavel Wicher & David Holman, 2015. "Green Transport Balanced Scorecard Model with Analytic Network Process Support," Sustainability, MDPI, vol. 7(11), pages 1-19, November.
    4. Caporale, Guglielmo Maria & Matousek, Roman & Stewart, Chris, 2012. "Ratings assignments: Lessons from international banks," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1593-1606.
    5. Clara Moreira Senne & Josiane Palma Lima & Fábio Favaretto, 2021. "An Index for the Sustainability of Integrated Urban Transport and Logistics: The Case Study of São Paulo," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    6. Mohammed Ifkirne & Houssam El Bouhi & Siham Acharki & Quoc Bao Pham & Abdelouahed Farah & Nguyen Thi Thuy Linh, 2022. "Multi-Criteria GIS-Based Analysis for Mapping Suitable Sites for Onshore Wind Farms in Southeast France," Land, MDPI, vol. 11(10), pages 1-26, October.
    7. Shen, Chung-Hua & Huang, Yu-Li & Hasan, Iftekhar, 2012. "Asymmetric benchmarking in bank credit rating," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(1), pages 171-193.
    8. Goldmann, Leonie & Crook, Jonathan & Calabrese, Raffaella, 2024. "A new ordinal mixed-data sampling model with an application to corporate credit rating levels," European Journal of Operational Research, Elsevier, vol. 314(3), pages 1111-1126.
    9. Hang Luo & Linfeng Chen, 2019. "Bond yield and credit rating: evidence of Chinese local government financing vehicles," Review of Quantitative Finance and Accounting, Springer, vol. 52(3), pages 737-758, April.
    10. Enrique Mu & Howard Stern, 2018. "A Contingent/Assimilation Framework for Public Interorganizational Systems Decisions: Should the City of Pittsburgh and Allegheny County Consolidate Information Technology Services?," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1611-1658, November.
    11. Jones, Stewart & Johnstone, David & Wilson, Roy, 2015. "An empirical evaluation of the performance of binary classifiers in the prediction of credit ratings changes," Journal of Banking & Finance, Elsevier, vol. 56(C), pages 72-85.
    12. Gerald J. Lobo & Luc Paugam & Hervé Stolowy & Pierre Astolfi, 2017. "The Effect of Business and Financial Market Cycles on Credit Ratings: Evidence from the Last Two Decades," Abacus, Accounting Foundation, University of Sydney, vol. 53(1), pages 59-93, March.
    13. Toly Chen, 2021. "A diversified AHP-tree approach for multiple-criteria supplier selection," Computational Management Science, Springer, vol. 18(4), pages 431-453, October.
    14. David Martinez-Miera & Rafael Repullo, 2019. "Monetary Policy, Macroprudential Policy, and Financial Stability," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 809-832, August.
    15. Abhijit Sharma & Diara Md. Jadi & Damian Ward, 2021. "Analysing the determinants of financial performance for UK insurance companies using financial strength ratings information," Economic Change and Restructuring, Springer, vol. 54(3), pages 683-697, August.
    16. Salvador, Carlos & Pastor, Jose Manuel & Fernández de Guevara, Juan, 2014. "Impact of the subprime crisis on bank ratings: The effect of the hardening of rating policies and worsening of solvency," Journal of Financial Stability, Elsevier, vol. 11(C), pages 13-31.
    17. Prati, Alessandro & Schindler, Martin & Valenzuela, Patricio, 2012. "Who benefits from capital account liberalization? Evidence from firm-level credit ratings data," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1649-1673.
    18. Hocine, Amine & Kouaissah, Noureddine, 2020. "XOR analytic hierarchy process and its application in the renewable energy sector," Omega, Elsevier, vol. 97(C).
    19. Bannier, Christina E. & Hirsch, Christian W., 2010. "The economic function of credit rating agencies - What does the watchlist tell us?," Journal of Banking & Finance, Elsevier, vol. 34(12), pages 3037-3049, December.
    20. Anatoly Peresetsky, Alexander Karminsky, 2011. "Models for Moody’s Bank Ratings," Frontiers in Finance and Economics, SKEMA Business School, vol. 8(1), pages 88-110, April.

    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

    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:eco:journ1:2016-04-87. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.