Probability of deafault using the logit model: The impact of explanatory variable and data base selection

The Spanish economy is suffering a severe financial crisis which is affecting all Spanish savings banks as well as some major banks. One of the triggers of the crisis is the high companies’ default rate experienced in the last years due to a deficient credit risk management by financial institutions...

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Detalles Bibliográficos
Autores: Bartual Sanfeliu, Concepción, García García, Fernando, Romero Civera, Agustin, Guijarro, Francisco|||0000-0002-8803-5165
Tipo de recurso: artículo
Fecha de publicación:2012
País:España
Institución:Universitat Politècnica de València (UPV)
Repositorio:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Idioma:inglés
OAI Identifier:oai:riunet.upv.es:10251/61415
Acceso en línea:https://riunet.upv.es/handle/10251/61415
Access Level:acceso abierto
Palabra clave:Credit risk
Default
Logit Model
ECONOMIA, SOCIOLOGIA Y POLITICA AGRARIA
ECONOMIA FINANCIERA Y CONTABILIDAD
Descripción
Sumario:The Spanish economy is suffering a severe financial crisis which is affecting all Spanish savings banks as well as some major banks. One of the triggers of the crisis is the high companies’ default rate experienced in the last years due to a deficient credit risk management by financial institutions. Credit risk analysis is mainly undertaken using the logit model to calculate the probability of default of the companies. In this work we describe some problems that arise when using this model and that can have a negative impact on the quality of the results obtained.