Corporate Ratings and a Model Proposition for the Manufacturing Industry at Borsa Istanbul

Nurcan Ocal, Metin Kamil Ercan and Eyup Kadioglu

International Journal of Financial Research, 2015, vol. 6, issue 3, 13-28

Abstract: In this study it is aimed to develop a model using logistic regression analysis for the forecasting the rating grade of a manufacturing firm that form the basis to expert evaluation. Under the scope of this study 35 financial ratios are used as the independent variables, which are calculated on the grounds of annual financial statements and their notes during the period of 2007-2013 which are disclosed by the 206 listed manufacturing firms on Borsa Istanbul, and the status of the firms being ¡°good¡± or ¡°bad¡± based on financial capability is used as the dependent variable. Percentage of correct classification of developed model is at acceptable levels. By using the developed model, probability of a firm being "good" or "bad" can be estimated and using the proposed scale rating grade can be appointed of the firm that rating wanted to be performed.

Keywords: corporate rating; logistic regression analysis; rating; financial failure; Borsa Istanbul (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:6:y:2015:i:3:p:13-28

DOI: 10.5430/ijfr.v6n3p13

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