A comprehensive decision support approach for credit scoring

2019 ◽  
Vol 120 (2) ◽  
pp. 280-290 ◽  
Author(s):  
Cuicui Luo

Purpose The purpose of this paper is to provide a comprehensive decision support approach in credit risk assessment. Design/methodology/approach A comprehensive decision support approach is proposed for credit scoring and prediction. The predictive performance of the new approach has been investigated by using data including number and text. Findings The results demonstrate that the proposed approach achieves better and more stable classification accuracy than the single classifiers in most cases. Meanwhile, the prediction accuracy of individual classifiers is also improved by the proposed approach. Originality/value This study provides a comprehensive model for credit risk scoring and provides valuable information to the existing literature on credit scoring by using artificial intelligence.

2015 ◽  
Vol 16 (4) ◽  
pp. 444-462 ◽  
Author(s):  
Andrea Schertler ◽  
Saskia Stoerch

Purpose – The purpose of this paper is to investigate whether factor sensitivities of margins of bank-issued warrants depend on issuers’ credit risk during the period of economic turmoil between January 2008 and June 2010. Design/methodology/approach – Therefore, first, Fama–MacBeth estimations were applied and it was demonstrate that the sensitivities of margins in terms of time to maturity and moneyness vary substantially over time; the average outcomes are similar to the results of classical pooled estimations. Findings – Then, time-series tests were used and it was found that the steepness of the issuers’ credit default swap (CDS) spread curves correlates negatively with the time-to-maturity sensitivities as well as with the explanatory power of Fama–MacBeth estimations. Research limitations/implications – These findings indicate that the life-cycle hypothesis is weakened when the issuers’ CDS spread curves become steeper. Originality/value – Thus, this study offers a new approach to gain insights into the role of issuers’ credit risk on price setting behavior.


2019 ◽  
Vol 76 (1) ◽  
pp. 333-353 ◽  
Author(s):  
Stephen Macdonald ◽  
Briony Birdi

Purpose Neutrality is a much debated value in library and information science (LIS). The “neutrality debate” is characterised by opinionated discussions in contrasting contexts. The purpose of this paper is to fill a gap in the literature by bringing these conceptions together holistically, with potential to deepen understanding of LIS neutrality. Design/methodology/approach First, a literature review identified conceptions of neutrality reported in the LIS literature. Second, seven phenomenographic interviews with LIS professionals were conducted across three professional sectors. To maximise variation, each sector comprised at least one interview with a professional of five or fewer years’ experience and one with ten or more years’ experience. Third, conceptions from the literature and interviews were compared for similarities and disparities. Findings In four conceptions, each were found in the literature and interviews. In the literature, these were labelled: “favourable”, “tacit value”, “social institutions” and “value-laden profession”, whilst in interviews they were labelled: “core value”, “subservient”, “ambivalent”, and “hidden values”. The study’s main finding notes the “ambivalent” conception in interviews is not captured by a largely polarised literature, which oversimplifies neutrality’s complexity. To accommodate this complexity, it is suggested that future research should look to reconcile perceptions from either side of the “neutral non-neutral divide” through an inclusive normative framework. Originality/value This study’s value lies in its descriptive methodology, which brings LIS neutrality together in a holistic framework. This framework brings a contextual awareness to LIS neutrality lacking in previous research. This awareness has the potential to change the tone of the LIS neutrality debate.


2018 ◽  
Vol 30 (2) ◽  
pp. 152-158 ◽  
Author(s):  
Rachna Sharma ◽  
Alka Goel

Purpose The paper focused onto the development of microcapsules by using two essential oils. It proposes the uses of eucalyptus oil and cedarwood oil as a natural insecticide. The purpose of this paper is to demonstrate the application of developed microcapsules to impart insect repellency on textile substrate. Design/methodology/approach The paper opted for an experimental study using two essential oils and gum in formations of microcapsules through a simple coaseravtion encapsulation technique. The developed solution was analyzed, including confirmation of size and structure through. Application of developed finish on substrate was also undertaken to prove better ability as repellent fabric. Findings The paper highlights useful invention of microencapsulated fabric developed with the combination of gum acacia and eucalyptus oil as core and shell material. The developed fabric has better ability to repel silverfish as compared to microencapsulated fabric developed with gum acacia (shell) and cedarwood oil (core). Research limitations/implications Due to the lack of time and less availability of essential oils, only two oils were used to test the insect repellent behavior. Practical implications This paper fulfills an identified need, it includes implications for the development of a very useful natural insecticide to repel silverfish (Lepisma saccharina) insect. This insect is a very common problem found in cloth wardrobes and bookshelves; it mainly attacks the fabric with cellulosic content and starch. Social implications Society will get major benefit of using these microencapsulated finished fabrics, which repel silverfish from their home and keep their clothing and books safe for longer period. The natural fragrance and medicinal benefits of these essential oils can never be ignored. Originality/value This study sets a new approach to repel insects like silverfish from the bookshelves and clothing wardrobes. A layer of insect repellent microencapsulated finished fabric can be added in these shelves and wardrobes. It is an eco-friendly approach of using natural essential oils instead of chemical insecticides.


2016 ◽  
Vol 36 (1) ◽  
pp. 51-59 ◽  
Author(s):  
Hamid Yilmaz ◽  
Mustafa Yilmaz

Purpose – Within team-oriented approaches, tasks are assigned to teams before being assigned to workstations as a reality of industry. So it becomes clear, which workers assemble which tasks. Design/methodology/approach – Team numbers of the assembly line can increase with the number of tasks, but at the same time, due to physical situations of the stations, there will be limitations of maximum working team numbers in a station. For this purpose, heuristic assembly line balancing (ALB) procedure is used and mathematical model is developed for the problem. Findings – Well-known assembly line test problems widely used in the literature are solved to indicate the effectiveness and applicability of the proposed approach in practice. Originality/value – This paper draws attention to ALB problem in which workers have been assigned to teams in advance due to the need for specialized skills or equipment on the line for the first time.


2014 ◽  
Vol 21 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Lidija Breznik ◽  
Robert D. Hisrich

Purpose – The purpose of this paper is to provide insights into the relationship between dynamic capabilities and innovation capabilities. It links dynamic capability with innovation capability and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review. Findings – The review indicates that common characteristics exist between of the both fields, which demonstrate six relationships. Additionally, findings show some inconsistencies and even contradictions. Originality/value – In this paper, the authors have compared dynamic capabilities, a relatively new approach in the field of strategic management, with innovation capabilities, a widely recognised crucial domain for sustained competitiveness. Since both areas address issues that are essential to today's environment, future research should seek to clarify both concepts, by undertaking some new research and developing comprehensive and unambiguous framework.


2015 ◽  
Vol 23 (2) ◽  
pp. 115-134 ◽  
Author(s):  
Thomas L. Hogan ◽  
Neil R. Meredith ◽  
Xuhao (Harry) Pan

Purpose – The purpose of this study is to replicate Avery and Berger’s (1991) analysis using data from 2001 through 2011. Although risk-based capital (RBC) regulation is a key component of US banking regulation, empirical evidence of the effectiveness of these regulations has been mixed. Among the first studies of RBC regulation, Avery and Berger (1991) provide evidence from data on US banks that new RBC regulations outperformed old capital regulations from 1982 through 1989. Design/methodology/approach – Using data from the Federal Reserve’s Call Reports, the authors compare banks’ capital ratios and RBC ratios to five measures of bank performance: income, standard deviation of income, non-performing loans, loan charge-offs and probability of failure. Findings – Consistent with Avery and Berger (1991), the authors find banks’ risk-weighted assets to be significant predictors of their future performance and that RBC ratios outperform regular capital ratios as predictors of risk. Originality/value – The study improves on Avery and Berger (1991) by using an updated data set from 2001 through 2011. The authors also discuss some potential limitations of this method of analysis.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas J. Mrozla

PurposeThis study examined how rural police agencies have responded to the COVID-19 pandemic.Design/methodology/approachUsing data from various sources, this study first analyzed what factors influenced agency preparedness to respond to pandemics. Second, it examined how the pandemic influenced specific organizational practices.FindingsFindings revealed that as coronavirus infections increased in counties, supervisors were more likely be tasked with inspecting personal protective equipment (PPE), agencies were more likely to offer pandemic related training, health tracking of officers was more likely to occur and agencies were more likely to encounter a shortage of officers. In addition, as rurality increased, agencies were more likely to offer training but less likely to experience officers contracting COVID-19 and an officer shortage. Lastly, as the rurality of the county in which the agency resides increased, the ability to supply PPE decreased.Practical implicationsBased on these findings, it is imperative that rural police agencies give attention to risk management and the formulation of policy to prepare for public health emergencies.Originality/valueWhile knowledge about how large police agencies in the United States have responded during the coronavirus pandemic is building, little is known about rural policing during pandemics.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ana Carolina Bender ◽  
Manuela Guerreiro ◽  
Bernardete Dias Sequeira ◽  
Júlio Mendes

Purpose The purpose of this study is to explore the hedonic experience and its formation at heritage attractions. Design/methodology/approach A qualitative and exploratory approach was applied, using data from 21 semi-structured interviews and three in-situ focus groups. Findings Findings highlight that senses, imagery and emotions are stimulated by the physical landscape and by triggers of memorable experiences. Research limitations/implications To further explore this topic, a broader range of heritage attractions and perspectives from the diverse stakeholders involved in the management and consumption of these sites is needed. Originality/value Given the scarcity of research dedicated to the hedonic experience at heritage sites, this study provides a contribution by exploring the visitor’s perspective and points out relevant insights. As the hedonic feelings of pleasure, comfort and related affective responses impact the quality of memorable experiences, relevant implications for theory and practice are discussed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronny Alexander Zayas-Mateo ◽  
Ángel Rafael Martínez-Lorente

Purpose ISO 9001 is applied by hundreds of thousands of companies throughout the world. For this reason, its effect on company results has been extensively studied. However, the results of those studies are inconclusive and sometimes contradictory. More in-depth research, with a new approach, is therefore necessary. The purpose of this paper is to analyse whether ISO 9001-certified companies suffered the effects of the financial and economic crisis of 2007–2008 to a lesser degree than non-certified ones. Design/methodology/approach A set of 179 companies certified by ISO 9001:2008 and 154 non-certified ones were analysed, as well as the accounting figures for net sales and operating income (EBIT: earnings before interest and taxes) from 2004 to 2012. Findings Companies from the industry and services sectors showed different results. Certified industrial companies achieved better outcomes than their non-certified counterparts. However, the deviations in outcomes were not significant for services companies. Research limitations/implications One limitation of this study is that companies’ official results are not always their true results. Another limitation is that having to do with the criteria followed to suppress extreme cases, which is always subjective. Furthermore, the implications of the results could be of use for those managers who are responsible for implementing ISO 9001 and for deciding whether obtaining the ISO 9001 certification would be beneficial to their companies. Originality/value This study constitutes a new approach for the assessment of the benefits of the ISO 9001 certification.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongming Gao ◽  
Hongwei Liu ◽  
Haiying Ma ◽  
Cunjun Ye ◽  
Mingjun Zhan

PurposeA good decision support system for credit scoring enables telecom operators to measure the subscribers' creditworthiness in a fine-grained manner. This paper aims to propose a robust credit scoring system by leveraging latent information embedded in the telecom subscriber relation network based on multi-source data sources, including telecom inner data, online app usage, and offline consumption footprint.Design/methodology/approachRooting from network science, the relation network model and singular value decomposition are integrated to infer different subscriber subgroups. Employing the results of network inference, the paper proposed a network-aware credit scoring system to predict the continuous credit scores by implementing several state-of-art techniques, i.e. multivariate linear regression, random forest regression, support vector regression, multilayer perceptron, and a deep learning algorithm. The authors use a data set consisting of 926 users of a Chinese major telecom operator within one month of 2018 to verify the proposed approach.FindingsThe distribution of telecom subscriber relation network follows a power-law function instead of the Gaussian function previously thought. This network-aware inference divides the subscriber population into a connected subgroup and a discrete subgroup. Besides, the findings demonstrate that the network-aware decision support system achieves better and more accurate prediction performance. In particular, the results show that our approach considering stochastic equivalence reveals that the forecasting error of the connected-subgroup model is significantly reduced by 7.89–25.64% as compared to the benchmark. Deep learning performs the best which might indicate that a non-linear relationship exists between telecom subscribers' credit scores and their multi-channel behaviours.Originality/valueThis paper contributes to the existing literature on business intelligence analytics and continuous credit scoring by incorporating latent information of the relation network and external information from multi-source data (e.g. online app usage and offline consumption footprint). Also, the authors have proposed a power-law distribution-based network-aware decision support system to reinforce the prediction performance of individual telecom subscribers' credit scoring for the telecom marketing domain.


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