Credit Rating of Listed Companies Based on Financial Reporting Information in Banks

Abstract

Accurate and condition-based validation will increase the value of banks, and if this is not done well, banks will face the risk of bankruptcy. The purpose of this research is to evaluate the usefulness of financial reporting information in modeling the credit rating of bank customers in listed companies. The methods used to validate the model in listed companies were grounded theory, DEMATEL, and regression. In the first stage, four main axes including (1) financial criteria, (2) non-financial criteria, (3) corporate governance criteria, and (4) market criteria for credit rating of customers were clarified by asking the opinion of 10 experts, were explained for the credit rating of customers. Three hypotheses were identified in the DEMATEL phase: the first hypothesis: There is a significant positive relationship between financial factors and bank facilities received by companies admitted to the Tehran Stock Exchange. Second hypothesis: There is a significant positive relationship between the company's market information and the bank facilities received by the companies admitted to the Tehran Stock Exchange. Third hypothesis: There is a significant positive relationship between non-financial factors and bank facilities received by companies listed on the Tehran Stock Exchange. The findings of the regression analysis did not reject the above hypotheses in 64 companies during the 5 years from 1396 to 1400. Banks should pay attention to the characteristics of companies in the existing conditions when providing facilities

Keywords

• credit scoring
• banks
• financial reporting information